Aritzia records strong revenue and profit growth in fiscal 2025

Luxury design house Aritzia delivered a strong financial performance in fiscal 2025, reflecting significant improvements in revenue growth and profitability across both its retail and eCommerce channels.

The company reported a 31.3 percent increase in net revenue for the fourth quarter, reaching 895.1 million Canadian dollars (647.7 million dollars). Adjusting for the extra week in Q4 of fiscal 2024, this growth amounts to 38 percent. Comparable sales rose by 26 percent.

For the full fiscal year, Aritzia generated 2.67 billion Canadian dollars in revenue, up 15 percent from the prior year. Both gross profit margin and adjusted EBITDA margin improved substantially—by approximately 450 and 400–450 basis points respectively.

"Our results for the fourth quarter and full year fiscal 2025 underscore the strength of our business and growing affinity for the Aritzia brand. Underpinned by our assortment of beautiful products, optimized inventory position and strategic marketing investments, we fueled accelerated momentum in eCommerce and continued to execute our real estate expansion strategy, including the opening of our iconic Fifth Avenue flagship in Manhattan," said CEO Jennifer Wong.

U.S. expansion drives revenue growth

The company particularly saw strong performance in the U.S. market, with net revenue increasing by 48.5 percent to 548 million Canadian dollars, now accounting for over 61 percent of the company’s total revenue. Retail sales climbed 24.2 percent to 517.1 million Canadian dollars, while eCommerce sales surged by 42.4 percent to 378.1 million Canadian dollars, representing 42.2 percent of total revenue in the quarter.

Profitability metrics also showed marked improvement. The gross profit margin expanded by 420 basis points to 42.5 percent, while the company reported a 121.8 percent jump in adjusted EBITDA to 160.9 million Canadian dollars, with the margin rising to 18 percent. Adjusted net income increased 156.5 percent to 98 million Canadian dollars or 0.83 Canadian dollars per share.

Strategically, Aritzia continued its expansion in the U.S., opening 12 new boutiques and repositioning three others, including a flagship location on Fifth Avenue in Manhattan.

Confident outlook for fiscal 2026 despite macroeconomic challenges

Despite potential macroeconomic headwinds, including shifting tariff policies, Aritzia remains optimistic about its near-term trajectory. "We continue to see strong momentum in the first quarter of fiscal 2026, fueled by a positive client response to our Spring/Summer product and our optimized inventory position,” Wong added. “We have a healthy balance sheet and are well-positioned to navigate the evolving macroeconomic conditions, while remaining steadfast in advancing our key growth levers."

For the first quarter of fiscal 2026, Aritzia expects net revenue in the range of 620 million to 640 million Canadian dollars, representing growth of approximately 24 percent to 28 percent. The company expects adjusted EBITDA as a percentage of net revenue to be approximately 14 percent.

For fiscal 2026, the company forecasts net revenue in the range of 3.05 billion to 3.25 billion Canadian dollars, representing growth of approximately 11 percent to 19 percent including the contribution from retail expansion with a minimum of 12 new boutiques and five boutique repositions. Ten new boutiques and two repositions are expected to be in the United States with the remainder in Canada. Adjusted EBITDA as a percentage of net revenue is expected to be approximately 14 percent to 15 percent.