Aritzia achieves 42.8 percent revenue growth in Q3, driven by US expansion

Aritzia Inc. has achieved a financial milestone, reporting record net revenue of 1.04 billion Canadian dollars (749.83 million dollars) for the third quarter of fiscal 2026. This represents a robust 42.8 percent increase over the previous year, fueled by a 34.3 percent rise in comparable sales across all channels and geographies.

The "Everyday Luxury" design house saw particularly explosive growth in the United States, where revenue surged 53.8 percent to 621.1 million Canadian dollars, now accounting for nearly 60 percent of the company's total business. CEO Jennifer Wong attributed the stellar performance to "unparalleled demand" for the brand's Fall/Winter assortment, successfully amplified by strategic marketing and the launch of the company’s new mobile app.

Aritzia records strong Q3 results

The company’s digital and physical footprints both saw significant gains during the period. Ecommerce revenue climbed 58.2 percent to 383 million Canadian dollars, while retail revenue grew 35.1 percent to 657.3 million Canadian dollars. This retail growth was supported by the opening of 13 new boutiques and four repositioned locations over the last 12 months, bringing the total boutique count to 139. Despite headwinds from new tariffs and the elimination of the de minimis exemption, Aritzia managed to expand its gross profit margin to 46 percent, aided by leverage on fixed costs and freight tailwinds.

Profitability metrics showed substantial year-over-year improvement, with net income soaring 87.5 percent to 138.9 million Canadian dollars. Adjusted EBITDA reached 207.6 million Canadian dollars, representing 20 percent of net revenue, as the company benefited from "smart spending" initiatives that lowered SG&A expenses as a percentage of sales. On a per-share basis, net income rose to 1.16 Canadian dollars compared to the same quarter last year. Wong noted that this momentum has carried into the fourth quarter, with record sales reported over the holiday period.

Outlook raised on positive holiday quarter performance

Looking ahead, Aritzia has raised its outlook for the full fiscal year 2026, forecasting net revenue between 3.615 billion and 3.640 billion Canadian dollars, which would represent approximately 33 percent annual growth, including the contribution from retail expansion with 13 new boutiques and four boutique repositions, mainly in the U.S. Based on quarter-to-date trends, for the fourth quarter, Aritzia expects net revenue in the range of 1.100 billion to 1.125 billion Canadian dollars, representing growth of approximately 23 percent to 26 percent.

The company plans to continue its aggressive expansion with approximately 200 million Canadian dollars in capital expenditures earmarked for new boutiques—primarily in the U.S.—and upgrades to its distribution center network. Management remains confident that its operating model and healthy balance sheet will continue to deliver profitable growth for shareholders.