Aritzia Stock Earnings Reports

Aritzia reported an impressive Q1 FY2026: net revenue of $663M (+33% YoY), comparable sales +19% with strength across channels and geographies, and adjusted EBITDA of $95M (+77% YoY). Retail (+34%) and e-commerce (+30%) both contributed materially; U.S. revenue grew 45% (driven by new/repositioned boutiques and e-commerce traffic), Canada +17%. Company increased square footage ~25% over the past 12 months and plans a minimum of 12 new and 5 repositioned boutiques this fiscal year (including new U.S. markets). Digital progress included full website migration, strong U.S. digital traffic (+~50%), international e-commerce launching next month, and a mobile app planned for H2. Gross margin expanded to 47.2% (up 320 bps) driven by occupancy and warehousing leverage and smart-spending savings; SG&A leverage improved margins further. Inventory is well-positioned (Q1 inventory $409M; ~35% of fall/winter expected in North America by early August). Tariff outlook improved materially after U.S. reciprocal tariff reduction on Chinese goods (145% to 30%): company now expects tariffs to pressure gross margin by ~150 bps for FY2026 (vs. ~400 bps prior), and revised FY2026 adjusted EBITDA margin guidance is ~15.5%–16.5% (equivalent to ~17%–18% excluding the 150 bps tariff headwind). Full-year revenue guide is $3.1B–$3.25B (growth 13%–19%); Q2 revenue guide $730M–$750M (+19%–22%). Balance sheet remains strong: ~$293M cash, no debt, $300M undrawn revolver. Management emphasizes continued focus on geographic expansion, digital growth, brand awareness, supply-chain diversification, IMU improvements and disciplined marketing/spend. Key risks: macro/consumer uncertainty and ongoing tariff developments, which the company is actively mitigating.