Aritzia Inc. has reported record financial results for its fourth quarter, achieving its fiscal 2027 revenue target a full year ahead of schedule, according to chief executive Jennifer Wong during the company's conference call on Thursday.
Record Revenue and Profit Growth
The Vancouver-based fashion retailer saw net revenue grow nearly 33 percent to just shy of $1.2 billion for the three months ending March 1, surpassing both analysts' expectations and the company's own guidance. Net income rose 35 percent to $134 million, while adjusted net income, excluding one-time items, increased 41 percent to $138 million. Adjusted earnings per share reached $1.15, up from $0.83 a year earlier and above the forecast of $1.03 per share.
U.S. Expansion Drives Momentum
Wong noted that the company continues to captivate shoppers with its expansion strategy, as new stores draw lineups and recoup costs faster than anticipated. Aritzia now operates 76 boutiques in the United States, where net revenue increased 38 percent to $755 million. The U.S. accounts for 64 percent of Aritzia's net revenue. The retailer plans to enter four new markets this year: Birmingham, Fort Worth, New Orleans, and St. Louis.
“Strong double-digit growth across new, existing, and reactivated clients has been a key contributor to the outstanding momentum in our business,” Wong said.
Navigating Tariff Challenges
Chief financial officer Todd Ingledew disclosed that the company is currently paying a global surcharge of 10 percent on imports from key sourcing markets, referencing new U.S. tariffs imposed by President Donald Trump in February. However, the U.S. Court of International Trade deemed those duties unlawful on Thursday, though the ruling applies only to three plaintiffs. Aritzia had previously shifted fulfilment of all American orders to its Ohio distribution centre before the de minimis exemption ended on Aug. 29. Wong expects work to begin on a second U.S. distribution centre later this year or early next.
Brand Strength and Market Position
Stifel Nicolaus Canada Inc. analyst Martin Landry highlighted Aritzia's growing brand awareness in the United States, noting that it is expanding rapidly while other brands like Abercrombie, Lululemon, and Banana Republic struggle. “Aritzia seems to have found a niche, offering high quality products at price points above mainstream brands,” Landry said. “This is conferring a cachet to the brand, which resonates with customers.”
Double-digit comparable sales growth in existing stores and strong sales at new and expanded boutiques helped overall retail net revenue grow to $698 million, up 35 percent from last year. New U.S. stores opened in fiscal 2026 are tracking to pay back in less than a year, beating Aritzia's target of 12 to 18 months.
Canadian Market Holds Steady
While the U.S. business leads growth, sales in the mature Canadian market remain resilient. Net revenue in Canada increased 24 percent to $431 million, driven by strong comparable sales both in stores and online.
