Press Release: Aritzia Reports Second Quarter Fiscal 2027 Financial Results

Dow Jones
16 hours ago

VANCOUVER, BC, Oct. 8, 2026 /PRNewswire/ -- Aritzia Inc. (TSX: ATZ) ("Aritzia", the "Company", "we" or "our"), a design house with an innovative global platform offering covetable styles online, on its app and in its boutiques, today announced its financial results for the second quarter ended August 30, 2026 ("Q2 2027").

"We sustained exceptional momentum in the second quarter, delivering 44% net revenue growth and a 35% increase in comparable sales, as broad-based strength across geographies, channels and product categories continued to demonstrate the wide appeal of our brand," said Jennifer Wong, Chief Executive Officer. "This outstanding performance was driven by high demand for our Summer and Fall collections, supported by optimal inventory positioning, while strategic investments in real estate, digital and marketing continued to expand our reach and deepen client engagement. Our digital channel was particularly robust, accelerating to 68% net revenue growth, while the United States remained our top market with 60% net revenue growth. Our strong top line performance, combined with disciplined execution and our profitability initiatives, drove a 590 basis point increase in our adjusted EBITDA margin to a second quarter record of 21%. In addition, adjusted net income per diluted share more than doubled compared to last year. These results demonstrate the tremendous earnings power of our business model as we continue to scale."

Ms. Wong added, "Our momentum has continued into the third quarter, driven by the positive response to our Fall product and growing affinity for our brand. I am incredibly proud of our people and the disciplined execution that continues to differentiate Aritzia. Their commitment to delivering exceptional experiences for our clients and advancing our strategic priorities has positioned us well for the future. I look forward to sharing how we plan to build on this momentum and unlock our next chapter of growth at our Investor Day on October 27, 2026."

Second Quarter Highlights

For Q2 2027, compared to Q2 2026(1) :

   -- Net revenue increased 44.1% to $1.17 billion, with comparable 
      sales2 growth of 34.5% 
 
   -- United States net revenue increased 60.3% to $779.4 million, comprising 
      66.6% of net revenue 
 
   -- Canada net revenue increased 19.8% to $390.4 million, comprising 33.4% of 
      net revenue 
 
   -- Retail net revenue increased 34.1% to $766.9 million, comprising 65.6% of 
      net revenue 
 
   -- Digital net revenue increased 67.7% to $402.9 million, comprising 34.4% 
      of net revenue 
 
   -- Adjusted gross profit margin2 excluding the benefit of tariff 
      refunds increased 490 bps to 48.7% 
 
   -- Gross profit margin2, as reported, increased 1,330 bps to 57.1% 
 
   -- Selling, general and administrative expenses as a percentage of net 
      revenue decreased 130 bps to 29.5% 
 
   -- Adjusted EBITDA2 increased 99.7% to $246.2 million. Adjusted EBITDA as a 
      percentage of net revenue2 increased 590 bps to 21.0% 
 
   -- Net income increased 204.2% to $201.7 million. Net income as a percentage 
      of net revenue increased 910 bps to 17.2%. Net income per diluted share 
      increased 203.6% to $1.70 per share, compared to $0.56 per share in Q2 
      2026 
 
   -- Adjusted Net Income2 increased 122.1% to $156.0 million. Adjusted Net 
      Income per Diluted Share2 increased 122.0% to $1.31 per share, compared 
      to $0.59 per share in Q2 2026 

Second Quarter Results Compared to Q2 2026

 
(unaudited, in 
thousands of 
Canadian 
dollars, unless 
otherwise 
noted)                   Q2 2027                 Q2 2026              Change 
                                                          % of 
                                % of net                   net 
                                 revenue                 revenue     %      bps 
Retail net 
 revenue         $     766,866    65.6 %  $     571,717   70.4 %   34.1 % 
Digital net 
 revenue               402,947    34.4 %        240,337   29.6 %   67.7 % 
                 -------------  --------  -------------  -------  -------  ----- 
Net revenue        $ 1,169,813   100.0 %  $     812,054  100.0 %   44.1 % 
 
Gross profit, 
 as reported     $     667,448    57.1 %  $     355,630   43.8 %   87.7 %  1,330 
Adjusted Gross 
 Profit(2) 
 (excluding the 
 benefit of 
 tariff 
 refunds)        $     570,011    48.7 %  $     355,630   43.8 %   60.3 %    490 
 
Selling, 
 general and 
 administrative 
 ("SG&A")        $     345,434    29.5 %  $     250,213   30.8 %   38.1 %  (130) 
 
Net income       $     201,690    17.2 %    $    66,301    8.2 %  204.2 %    910 
 
Net income per 
 diluted share     $      1.70              $      0.56           203.6 % 
 
Adjusted 
 EBITDA(2)       $     246,170    21.0 %  $     123,277   15.2 %   99.7 %    590 
 
Adjusted Net 
 Income(2)       $     156,042    13.3 %    $    70,244    8.7 %  122.1 %    470 
 
Adjusted Net 
 Income per 
 Diluted 
 Share(2)          $      1.31              $      0.59           122.0 % 
 

Net revenue increased 44.1% to $1.17 billion, compared to $812.1 million in Q2 2026, or increased 42.1% on a constant currency(2) basis, driven by outstanding comparable sales growth and the strong performance of the Company's new and repositioned boutiques. Comparable sales(2) increased 34.5%, as all channels and all geographies generated positive double-digit growth. This was driven by exceptional demand for the Company's product offering, as well as the Company's digital initiatives and its strategic marketing investments.

   -- In the United States, net revenue increased 60.3% to $779.4 million, 
      compared to $486.1 million in Q2 2026. This was fueled by strong 
      comparable sales growth in Digital and Retail, as well as the Company's 
      real estate expansion strategy. 
 
   -- Net revenue in Canada increased 19.8% to $390.4 million, compared to 
      $326.0 million in Q2 2026, driven by strong comparable sales growth in 
      Digital and Retail, as well as the Company's real estate expansion 
      strategy. 
 
   -- Retail net revenue increased 34.1% to $766.9 million, compared to $571.7 
      million in Q2 2026. The increase was driven by strong comparable sales 
      growth in both the United States and Canada, as well as the strong 
      performance of the Company's new and repositioned boutiques. In the last 
      12 months, the Company opened 14 new boutiques and repositioned five 
      boutiques. Boutique count3 at the end of Q2 2027 totaled 146 compared to 
      134 boutiques at the end of Q2 2026. 
 
   -- Digital net revenue increased 67.7% to $402.9 million, compared to $240.3 
      million in Q2 2026. The increase was fueled by strong traffic growth, 
      driven by robust demand for the Company's product offering, its new 
      mobile app and its investments in digital marketing. 

Gross profit as reported increased 87.7% to $667.4 million, which includes the benefit of $97.4 million of tariff refunds, compared to $355.6 million in Q2 2026. Adjusted gross profit margin(2) excluding the benefit of tariff refunds was 48.7%, compared to 43.8% in Q2 2026. The 490 bps increase in adjusted gross profit margin was primarily driven by IMU improvements, leverage on store occupancy and other fixed costs, and improved markdowns.

During the 13-week period ended August 30, 2026, the Company recognized approximately $97.4 million in International Emergency Economic Powers Act ("IEEPA") tariff refunds that were received. These amounts have been presented separately in the unaudited condensed interim consolidated statements of operations and comprehensive income under recovery of tariff refund claims.

SG&A expenses increased 38.1% to $345.4 million, compared to $250.2 million in Q2 2026. SG&A expenses were 29.5% of net revenue, compared to 30.8% in Q2 2026. The 130 bps improvement was primarily driven by expense leverage and savings from the Company's smart spending initiative.

Net income as reported was $201.7 million, or 17.2% of net revenue, which includes the benefit of $97.4 million of tariff refunds, an increase of 204.2% compared to $66.3 million, or 8.2% of net revenue, in Q2 2026, primarily attributable to the factors described above. Net income per diluted share as reported was $1.70 per share, which includes the benefit of $97.4 million of tariff refunds, an increase of 203.6% compared to $0.56 per share in Q2 2026.

Adjusted EBITDA(2) was $246.2 million or 21.0% of net revenue(2) , an increase of 99.7% compared to $123.3 million or 15.2% of net revenue in Q2 2026.

Adjusted Net Income(2) was $156.0 million, an increase of 122.1% compared to $70.2 million in Q2 2026. Adjusted Net Income per Diluted Share(2) was $1.31 per share, an increase of 122.0% compared to $0.59 per share in Q2 2026.

Effective the first quarter of Fiscal 2027, the Company updated the composition of its Adjusted EBITDA to adjust for foreign exchange losses or gains on intercompany balances. The following table provides the impact of foreign exchange losses or gains on intercompany balances to Adjusted EBITDA(2) and Adjusted Net Income(2) :

 
(unaudited, in 
thousands of 
Canadian dollars, 
unless otherwise 
noted)                     Q2 2027                  Q2 2026             Change 
                                    % of                     % of 
                                     net                      net 
                                   revenue                  revenue     %     bps 
Adjusted 
 EBITDA(2)         $      246,170   21.0 %  $      123,277   15.2 %   99.7 %  590 
 Foreign exchange 
  on intercompany 
  balances - add 
  back gains / 
  (deduct 
  losses)                     169                    (557) 
                   --------------           -------------- 
Adjusted 
 EBITDA(2) with 
 foreign exchange 
 on intercompany 
 balances          $      246,339   21.1 %  $      122,720   15.1 %  100.7 %  600 
                   --------------           -------------- 
 
Adjusted Net 

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