Aritzia Inc. reported a dramatic surge in first-quarter profits, with net income almost tripling compared to a year earlier, as the Vancouver-based fashion retailer continued to expand its footprint in the United States.
The company, known for its women's apparel and accessories, said net income for the quarter ended May 31, 2026, rose to $45.2 million, up from $15.8 million in the same period last year. Revenue increased 20% to $530 million, beating analyst expectations.
Strong US Performance Drives Growth
Aritzia attributed much of its growth to robust demand in the US market, where same-store sales rose 15%. The retailer has been aggressively opening new locations south of the border, with 10 new stores added in the past year, bringing its total US count to 85.
“Our US expansion strategy is clearly paying off,” said CEO Jennifer Wong in a statement. “We continue to see strong customer response to our product assortment and store experience, which is driving both traffic and conversion.”
The company's e-commerce channel also posted strong gains, with digital sales climbing 18% year-over-year to $210 million, representing about 40% of total revenue.
Margin Expansion and Cost Control
Gross margin improved to 62.5% from 60.1% a year earlier, helped by better inventory management and favorable product mix. Selling, general and administrative expenses as a percentage of revenue declined to 35.2% from 36.8%, reflecting operating leverage.
“We are pleased with our ability to expand margins while continuing to invest in growth initiatives,” Wong added. “Our disciplined approach to cost management is yielding results.”
Analysts had expected earnings per share of $0.35, but Aritzia reported adjusted EPS of $0.41, beating estimates by 17%.
Outlook and Store Expansion
Looking ahead, Aritzia said it plans to open 15 to 18 new stores in fiscal 2027, with a focus on the US market. The company also expects to continue investing in its digital platform and supply chain infrastructure.
“We remain confident in our long-term growth trajectory,” Wong said. “Our brand resonance is strong, and we see significant opportunity to further penetrate the North American market.”
For the second quarter, Aritzia guided revenue in the range of $540 million to $550 million, implying growth of about 15% to 17% from the prior year.
Shares of Aritzia rose 4.5% in after-hours trading following the earnings release, reflecting investor optimism about the company's performance and outlook.
