Aritzia's revenue jumps 44% to $1.17B as U.S. sales surge 60%

Aritzia Inc. reported one of the strongest quarters in its history on Thursday, October 8. The Vancouver-based women's fashion retailer said net revenue rose 44.1% to $1.17 billion in its fiscal second quarter, which ended August 30, 2026, with comparable sales up 34.5%.

The growth came mainly from south of the border. U.S. revenue climbed 60.3% to $779.4 million and now accounts for 66.6% of the company's sales. Canadian revenue rose a more modest 19.8% to $390.4 million.

The numbers

Investors liked what they saw. On Friday, October 9, Aritzia shares rose 16.6% on the TSX to $142.10, from a previous close of $121.89, on roughly double the usual trading volume, according to MarketBeat.

• Net revenue: $1.17 billion, up 44.1% (42.1% in constant currency)
• Digital (online) revenue: $402.9 million, up 67.7%; retail boutiques: $766.9 million, up 34.1%
• Net income: $201.7 million, or $1.70 per diluted share, up 204.2%
• Adjusted net income: $156.0 million, or $1.31 per diluted share, up 122.1%
• Adjusted EBITDA: $246.2 million, a margin of 21.0%, up 590 basis points
• Boutiques: 146 at quarter end, versus 134 a year earlier

A one-time tariff refund flatters the bottom line

The reported profit includes a $97.4 million benefit from refunds of tariffs paid under the U.S. International Emergency Economic Powers Act (IEEPA). That pushed reported gross margin to 57.1%. Excluding the refund, adjusted gross margin was 48.7%, still a 490-basis-point improvement over a year earlier.

This is why the adjusted figures matter: the refund is not expected to repeat, and the company's own outlook explicitly excludes any further tariff-refund benefit.

Outlook

Management guided to third-quarter net revenue of $1.275 billion to $1.325 billion, growth of roughly 23% to 27%. For the full fiscal year 2027, Aritzia expects revenue of $4.78 billion to $4.88 billion, about 29% to 32% higher than fiscal 2026, and an adjusted EBITDA margin of about 20%.

The company plans 12 to 13 new boutiques this year, 11 to 12 of them in the United States. Chief executive Jennifer Wong said momentum had continued into the third quarter on the strength of the Fall product line, and the company will hold an investor day on October 27.

The risks

Rapid growth carries its own pressures. Inventory rose 35.8% to $714.9 million, which the company will need to sell through at full price to protect margins. Two-thirds of revenue now depends on the U.S. consumer, at a time when trade relations between Ottawa and Washington remain tense.

Valuation is another consideration. Even after the jump, MarketBeat data showed several analysts had trimmed price targets in recent weeks, and the stock trades at a high multiple of earnings. Expectations are now elevated, and fashion retail is notoriously cyclical.

What it means for Canadian investors

Aritzia is a reminder that some Canadian companies are finding growth by selling directly into the U.S. market rather than relying on the domestic economy. For investors, the key lesson from this quarter is to look past headline profit to adjusted results when one-time items such as tariff refunds are involved.

Individual retail stocks can swing sharply on a single earnings report, in both directions. Investors who want exposure to the sector without that concentration risk can hold it through a diversified Canadian equity ETF. This is general information, not personalized advice.

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