Aritzia Raises 2027 Outlook As Q2 Revenue Up 44 Per Cent To $1.17 Billion

Aritzia Inc. upgraded its full-year outlook on Thursday as the Canadian clothing retailer reported strong second-quarter results and continues to expand its physical and digital reach into U.S. markets.

The Vancouver-based company said net revenue grew 44 per cent to $1.17 billion in the second quarter, which ended Aug. 31.

Adjusted net income, which excludes the impact of one-time items, increased 122 per cent to $156 million. Adjusted earnings per share were $1.31 per share, up from $0.59 cents per share a year earlier and well above analysts’ forecasts of $1.05 per share.

On a call with analysts, Aritzia chief executive Jennifer Wong attributed the quarter’s strength to all geographies, channels and product categories.

“We generated high demand for our summer and fall collections and supported this with optimal inventory positioning,” she said. “In addition, strategic investments in digital, real estate and marketing continue to expand our reach.”

In the U.S., a major growth engine that accounts for 66 per cent of Aritzia’s business, net revenue grew 60 per cent to $779 million. The country is Aritzia’s “highest-priority growth market,” said chief financial officer Todd Ingledew, and the company plans to open six new U.S. boutiques in the third quarter.

During the second quarter, Aritzia also received around $97.4 million in refunds from U.S. tariffs levied under the International Emergency Economic Powers Act (IEEPA). The tariffs were ruled illegal by the U.S. Supreme Court in Feb­ru­ary, entitling thousands of importers to billions in refunds.

Aritzia’s Canadian net revenue increased nearly 20 per cent to $390 million, which Ingledew said reinforces the “enduring loyalty” of shoppers in its home market.

The company’s retail net revenue increased 34 per cent to just under $767 million, while digital net revenue increased almost 68 per cent to just shy of $403 million.

Based on year-to-date performance and the “continued momentum” Aritzia sees in its business, Ingledew said the company is raising its full-year fiscal 2027 outlook and now expects to earn between $4.78 billion to $4.88 billion, representing growth of 29 per cent to 32 per cent from the previous year.

More to come…

• Aritzia revenue up 43%, digital revenue up 55% in latest quarter
• Aritzia reports record revenue in fourth quarter, hits 2027 target a year early

• Email: jswitzer@postmedia.com