Aritzia Reports Second Quarter Fiscal 2026 Financial Results

Executive Summary

• Aritzia reported net revenue of $812.1 M, a 31.9% YoY increase, driven by strong U.S. performance and double‑digit growth across all channels.
• Adjusted EBITDA rose 122.5% to $122.7 M (15.1% of net revenue); net income surged 263.4% to $66.3 M ($0.56 per diluted share).
• Management provided FY 2026 outlook: net revenue $3.30‑$3.35 B (≈21‑22% growth) and capital cash expenditures of roughly $200 M, with significant boutique expansion in the U.S. and Canada.

Key Details

• Revenue & Growth
• Net revenue Q2 2026: $812.1 M vs. $615.7 M (Q2 2025) – +31.9% YoY.
• Comparable sales growth: 21.6% YoY.
• United States net revenue: $486.1 M (+40.7% YoY), representing 59.9% of total.

• Canada net revenue: $326.0 M (+20.6% YoY).

• Segment Performance

• Retail net revenue: $571.7 M (+34.3% YoY).

• eCommerce net revenue: $240.3 M (+26.5% YoY).

• Profitability

• Gross profit margin: 43.8%, up 360 bps from 40.2%.
• SG&A as % of net revenue: 30.8%, down 160 bps YoY.
• Adjusted EBITDA: $122.7 M (15.1% of net revenue), +122.5% YoY.

• Net income: $66.3 M, up 263.4% YoY; net income per diluted share $0.56 (+250%).

• Balance Sheet & Cash

• Cash & cash equivalents: $352.3 M (up from $285.6 M).
• Inventory: $526.6 M, +9.1% YoY.

• Capital cash expenditures (net of lease incentives): $59.6 M Q2, $111.9 M YTD.

• Boutique Expansion

• Total boutiques end‑Q2 2026: 134 (up from 122).
• New boutiques in quarter: 3; YTD new boutiques: 13.

• Repositioned boutiques: 1 in quarter, 2 YTD.

• Outlook – Q3 FY 2026

• Expected net revenue: $875‑$900 M (≈20‑24% QoQ growth).

• Gross profit margin & SG&A % of revenue expected to be flat versus Q3 2025.

• Full‑Year FY 2026 Guidance

• Net revenue target: $3.30‑$3.35 B (≈21‑22% YoY growth).
• Adjusted EBITDA margin: 15.5‑16.5% of net revenue.

• Capital cash expenditures (net of lease incentives): ~$200 M, including ~$120 M for boutique expansion and $80 M for distribution centre/network investments.

• Other Notable Items

• Normal Course Issuer Bid: repurchased 217,700 shares at an average price of $74.56, total cash outlay $16.2 M (May‑Aug 2025).
• Tariff risk disclosed – potential negative impact on costs and supply chain.

Notable Quotes

“We delivered net revenue of $812 million… comparable sales grew 22%… Exceptional strength in the United States continued to drive our results…” — Jennifer Wong, CEO