Aritzia Revenue Surges 44.1% to C$1,169,813 Thousand in Second Quarter
Key Facts
Aritzia reported on Oct. 8, 2026, that revenue in the second quarter of fiscal 2027 rose 44.1% to C$1,169,813 thousand, compared with C$812,054 thousand in the year-earlier period. The fiscal period ended Aug. 30, 2026. Comparable sales, which exclude the impact of new and repositioned stores, grew 34.5%. The company said growth reflected demand for its products, digital initiatives and marketing investments, alongside store performance. The results provide a measure of performance in the quarter before the company announced its five-year strategic plan on Oct. 27.
The United States was the larger growth driver among the two main markets, with revenue rising 60.3% to C$779.4 million in the second quarter. In Canada, revenue increased 19.8% to C$390.4 million. Digital channels grew faster than stores: digital revenue reached C$402.9 million, up 67.7%. Retail revenue increased 34.1% to C$766.9 million. Chief Executive Jennifer Wong said digital-channel revenue grew 68%, and the United States remained the company's largest market, with growth of 60%.
The company attributed performance to strong comparable sales, contributions from new and repositioned stores, demand for its products, and digital initiatives and strategic marketing spending. Wong said strong demand spanned the summer and fall collections. She added that the fall products received a positive response and momentum continued into the third quarter. The company described digital-channel performance as particularly strong, alongside growth in the United States. In the second quarter of fiscal 2026, revenue had risen 31.9% to C$812.1 million, with comparable sales growth of 21.6%.
Reported net income was C$201.7 million, including C$97.4 million in tariff refunds recognized during the 13 weeks ended Aug. 30, 2026. The company therefore separated the impact of those amounts in presenting adjusted gross profit margin: the margin was 48.7% excluding the benefit of the refunds, compared with 43.8% in the second quarter of fiscal 2026. Wong said adjusted EBITDA margin increased 590 basis points to a second-quarter record of 21%. Adjusted diluted earnings per share also more than doubled from a year earlier. The figures mean reported net income included a financial impact from tariff refunds, while the adjusted margin provides a comparison excluding that impact.
In an operational update, the company said inventory stood at C$714.9 million at the end of the second quarter, up 35.8% from C$526.6 million at the end of the corresponding period of fiscal 2026. It also repurchased 912,800 shares for C$125.3 million during the quarter. In the year-earlier period, it bought 202,500 shares for C$15.3 million. The purchases are part of the company's share repurchase program. The activity comes as the five-year plan links shareholder returns to expected free cash flow over the plan period.
Aritzia announced a five-year strategic plan on Oct. 27 targeting revenue of between C$9.5 billion and C$10.5 billion in fiscal 2032. According to the company, that represents a compound annual growth rate of between 15% and 17%, based on its fiscal 2027 outlook. It also set a target for adjusted EBITDA margin of 21% of revenue in fiscal 2032 and said earnings-per-share growth is targeted to exceed revenue growth. For its North American digital channel, the plan targets revenue of between C$4.1 billion and C$4.5 billion, with a compound annual growth rate of about 20%. The company defines fiscal 2032 as a 52-week period ending Feb. 29, 2032.
The plan ties its revenue targets to expanding the store network to 220 stores by fiscal 2032. Its assumptions include opening 12 to 14 new stores a year and repositioning 5 to 7 stores a year. The company estimated net cash capital expenditures, after lease incentives, at about C$2 billion over the five years. It also said the United States will remain its primary growth market through fiscal 2032, while geographic expansion continues beyond Canada and the United States. The plan assumes the customer base will roughly double, while international expansion could contribute up to C$500 million in revenue by that year.
For the nearer-term outlook, the company expects revenue of between C$1.275 billion and C$1.325 billion in the third quarter of fiscal 2027, representing annual growth of between 23% and 27%. It raised its fiscal 2027 outlook to a range of between C$4.78 billion and C$4.88 billion, with expected growth of between 29% and 32%. It also forecast adjusted EBITDA margin of about 20% of revenue in fiscal 2027, compared with 17.8% in fiscal 2026, citing gross margin improvement, expense savings and the benefits of revenue growth. The company described its 2032 targets as forward-looking information based on management's current strategies and cautioned that actual results may differ. Shares closed at C$121.89 on Oct. 8, down 1.13% from the previous close.