Aritzia — benefiting from the strong demand for its fashion products, digital initiatives and investments in stores and marketing — saw strong gains across several metrics in the first quarter.
Net revenue increased 43.4 percent to $951 million in the quarter ended May 31, compared to $663.3 million generated in the year-ago period. Comparable sales grew 35.1 percent. All figures are in Canadian dollars.
Adjusted earnings before interest, taxes, depreciation and amortization increased 80.5 percent to $191.6 million. Adjusted EBITDA as a percentage of net revenue increased 410 basis points to 20.1 percent.
Net income increased 177 percent to $117.3 million, or 99 cents per diluted share, compared with $42.39 million, or 36 cents, a year earlier.
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Jennifer Wong, chief executive officer, said: “Our momentum was broad-based across the business — spanning all geographies, channels and categories. Robust demand for our spring and summer product, supported by our healthy inventory position, fueled this phenomenal performance. Our digital initiatives, new boutique openings and strategic marketing investments continued to drive increased awareness and widespread affinity for the Aritzia brand. Notably, our digital business gained significant momentum, with net revenue growth accelerating to 56 percent, while the United States remained our largest growth market with a 55 percent top-line increase.
“Importantly, our strong momentum has carried into the second quarter of fiscal 2027 as we consistently deliver against our three strategic growth levers — geographic expansion, digital growth and increased brand awareness,” Wong added. “We also continue to invest in world-class infrastructure to ensure we remain well-positioned to capitalize on our long runway for growth in the United States and beyond. The strength of the Aritzia brand has never been more evident, and we look forward to executing on our strategic vision for the future.”
Aritzia, a vertically integrated fashion design house guided by its “everyday luxury” philosophy, can be fashion-forward, and has a reputation for quality and being spot on with trends. It’s not fast fashion, or cheap, and fills a niche between mass-market and high-end brands. Many of the items in the collection are considered wardrobing staples, versatile and easy to mix and match. Aritzia is further advantaged by successfully attracting mothers and daughters who shop together.
The retailer is steadily growing its presence and popularity across North America, and sees the potential to operate upward of 200 stores in the U.S. alone. And in many cases, the buildout is bolder, in larger boxes with cafés, spacious fitting areas with multiple fitting rooms, elevated service and greater amenities. Aritzia stores average about 10,000 square feet, with flagship locations at least 20,000 square feet.
In Vancouver, where Aritzia is based, a flagship is tentatively set to open in 2027 at the site of a former Nordstrom store at the corner of Robson and Howe streets. With four levels and 40,000 square feet of space, including selling and back-of-the-house areas, the flagship will be among Aritzia’s most expansive and immersive retail destinations to date.
Aritzia operated 143 stores in North America as of the end of the first quarter, with 76 in the U.S. and 67 in Canada.
In February, Aritzia acquired the Fred Segal brand and has leased 8100 Melrose Avenue, Fred Segal’s original flagship destination. The move marks another step in the company’s long-term strategy to expand in the U.S., but also challenges the retailer to revive the Fred Segal brand so that it lives up to its storied reputation. Fred Segal pioneered experiential retail and introduced what was known as the “California cool aesthetic,” with sexy looks, fashion-forward denim lines and collaborations with designers.
Based on quarter-to-date trends, Aritzia expects second-quarter revenues in the range of $1.1 billion to $1.125 billion, representing growth of approximately 35 percent to 39 percent.
For all of 2026, Aritzia expects net revenue in the range of $4.55 billion to $4.75 billion, representing growth of approximately 23 percent to 28 percent from last year. This includes the contribution from retail expansion with 12 to 13 new boutiques and four to five boutique repositions.
In a conference call Thursday with investors and industry analysts, Wong said Aritzia’s “high-quality styles at attainable price points continues to drive outstanding results. Widespread demand across all regions reflects the growing affinity for our brand and deep loyalty of our client base space. Our broad assortment and disciplined inventory management fueled strong trends across diverse retail climate, and the healthy composition of our inventory continues to drive a lower markdown rate. For summer, we introduced fresh silhouettes and new color launches from linen to satin to terry fleece and dresses, we drove client engagement throughout the season. At the same time, we saw sustained momentum in the iconic franchises for which we are well known and loved.”
In marketing, Wong said, “Our world of ‘everyday luxury’ continued to successfully broaden our reach and introduce new audiences to Aritzia. This fueled another quarter of robust client acquisition. At the same time, we remain focused on deepening our connection with existing clients and maximizing share of closet.”
