Aritzia's US revenue surges 45 percent in Q1, driving overall growth

Aritzia Inc., a design house and global platform for luxury apparel, announced its financial results for the first quarter ended June 1, 2025, demonstrating significant growth across its operations.

For the first quarter, Aritzia reported net revenue of 663.3 million dollars, marking a 33 percent increase, while comparable sales also grew by 19.3 percent, driven by double-digit growth across all sales channels and geographic regions. The United States market was a key contributor to this performance, with net revenue increasing by 45.1 percent to 413 million dollars, representing 62.3 percent of total net revenue. Retail net revenue saw a 34.2 percent increase to 480.3 million dollars, while eCommerce net revenue grew by 30 percent to 183 million dollars, comprising 27.6 percent of net revenue.

Gross profit margin for the quarter expanded by 320 basis points to 47.2 percent. Adjusted EBITDA increased by 76.9 percent to 95.3 million dollars, with adjusted EBITDA as a percentage of net revenue rising 360 basis points to 14.4 percent. Net income surged by 167.7 percent to 42.4 million dollars, resulting in net income per diluted share of 36 cents. Adjusted net income increased by 97.4 percent to 49.3 million dollars, with adjusted net income per diluted share rising to 42 cents.

Jennifer Wong, chief executive officer, commented on the results, stating, "Our results were driven by the strong performance of our Spring/Summer product, which resonated exceptionally well with our clients, as well as our optimized inventory position, strategic marketing investments and our new and repositioned boutique openings." Wong further added, "Trends across the business remain strong, and we are pleased with the start to our second quarter. We continue to navigate macro developments from a position of financial and operational strength, as we adapt to the environment around us and execute across our key strategic growth levers - geographic expansion, digital growth and increased brand awareness."

As of June 1, 2025, Aritzia's boutique count totalled 131, an increase from 119 boutiques at the end of Q1 2025, reflecting the opening of 13 new boutiques and the repositioning of three boutiques over the last 12 months.

For the second quarter of fiscal 2026, Aritzia anticipates net revenue in the range of 730 million dollars to 750 million dollars, representing growth of approximately 19 percent to 22 percent. The company expects gross profit margin to increase by approximately 100 basis points.

For the full fiscal 2026, Aritzia projects net revenue between 3.10 billion dollars and 3.25 billion dollars, representing growth of approximately 13 percent to 19 percent. This outlook includes plans for a minimum of 12 new boutiques and five boutique repositions, with 11 new boutiques and two repositions expected in the United States. Adjusted EBITDA as a percentage of net revenue is forecasted to be approximately 15.5 percent to 16.5 percent.