Aritzia Inc. reported a 176% surge in net income for the first quarter of fiscal 2026, reaching $117 million, as net revenue climbed 43% to $951 million, surpassing analyst expectations of $922 million. The Vancouver-based women's clothing retailer attributed the performance to robust demand for spring and summer products supported by healthy inventory levels.
CEO highlights phenomenal performance
“Robust demand for our spring and summer product, supported by our healthy inventory position, fueled this phenomenal performance,” said Jennifer Wong, chief executive of Aritzia, in a release. The company noted momentum across all geographies, channels, and categories.
Adjusted net income, excluding non-recurring items, increased 98% to nearly $114 million. Adjusted earnings per share rose to $0.96 from $0.49 a year earlier, above the $0.88 forecast by analysts.
Comparable sales and channel growth
Aritzia reported 35% growth in comparable sales, combining revenue from online and stores open for more than a year. Retail net revenue grew nearly 39% to $666 million, driven by strong comparable sales in both Canada and the U.S. and contributions from new and renovated boutiques.
Digital net revenue gained “significant momentum,” spiking 55% to nearly $285 million, fueled by traffic growth, the company’s mobile app, and investments in digital marketing.
U.S. expansion drives revenue
The ongoing U.S. expansion strategy, along with outstanding comparable sales growth online and in existing stores, boosted U.S. net revenue by 54% to $638 million. The U.S. now accounts for 67% of the retailer’s business. Aritzia ended the quarter with 143 stores across Canada and the U.S., up from 131 a year earlier.
Canadian net revenue increased 25% to just under $313 million, also driven by digital and in-store comparable sales growth.
Fiscal 2027 outlook raised
When Aritzia released its fourth-quarter results in May, it said it had hit its 2027 revenue target one year early. The company now expects fiscal 2027 net revenue in the range of $4.55 billion to $4.75 billion, representing growth of approximately 23% to 28% from fiscal 2026.
