Aritzia's U.S. sales drive record Q2, defying tariff headwinds

Aritzia, the design house offering Everyday Luxury, announced strong financial results for the second quarter of fiscal year 2026, driven by impressive growth in the United States. Net revenue surged 31.9 percent to 812.1 million Canadian dollars (58 million dollars), with comparable sales growing by 21.6 percent.

The company’s performance was particularly strong in the U.S., where net revenue increased by 40.7 percent to 486.1 million Canadian dollars, underscoring the growing brand affinity.

Record profitability and strategic momentum

Aritzia achieved record profitability, with adjusted EBITDA more than doubling to 122.7 million Canadian dollars, an increase of 122.5 percent from the prior year. This led to adjusted net income per diluted share soaring by 181 percent to 0.59 Canadian dollars.

CEO Jennifer Wong attributed the results to broad-based momentum: "Our performance was fueled by robust demand for our high-quality beautiful products, including an outstanding response to our Fall launch, as well as our strong inventory position, strategic marketing investments and new boutique openings."

The company also saw a substantial 360 basis point increase in gross profit margin to 43.8 percent.

Outlook and tariff concerns

Momentum has continued into the third quarter, with the company anticipating net revenue between 875 million and 900 million Canadian dollars, representing growth of approximately 20 percent to 24 percent. For the full fiscal year 2026, Aritzia projects net revenue in the range of 3.30 billion to 3.35 billion Canadian dollars, an increase of 21 percent to 22 percent from the prior year, with adjusted EBITDA as a percentage of net revenue expected to be between 15.5 percent and 16.5 percent.

However, the company noted that ongoing uncertainty from U.S. tariffs continues to be a factor. For fiscal year 2027, Aritzia revised its adjusted EBITDA margin outlook to the high teens (down from a prior estimate of approximately 19 percent), citing "additional pressure from U.S. reciprocal tariffs and the elimination of the de minimis exemption." Capital cash expenditures for 2026 are projected to be about 200 million Canadian dollars, covering investments in new boutiques and the construction of the new distribution center in British Columbia.

Wong affirmed the company's position of strength amidst global trade uncertainty: "We remain agile as we navigate tariff-related developments from a position of strength. The momentum in our business, our proven operating model and our healthy balance sheet give us confidence in our path forward as we capitalize on our vast opportunity for growth in the United States and beyond."