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Highlights
• Q1 2026 net revenue increased 33% to CAD663.3 million
• United States revenue rose 45.1%, making up 62.3% of total revenue
• Adjusted EBITDA grew 76.9% to CAD95.3 million, margin expanded to 14.4%

Aritzia Inc. (TSX:ATZ) has reported its financial results for the first quarter of fiscal 2026 (Q1 2026), posting a 33.0 percent increase in net revenue to CAD663.3 million compared to CAD498.6 million in the same quarter last year. The performance was supported by 19.3 percent comparable sales growth across all geographies and channels.

United States revenue reached CAD413.0 million, marking a 45.1 percent year-over-year increase and accounting for over 62 percent of total revenue. Canadian revenue also rose, up 17.0 percent to CAD250.3 million. Retail net revenue increased 34.2 percent to CAD480.3 million, while eCommerce net revenue climbed 30.0 percent to CAD183.0 million.

Gross profit rose 42.5 percent to CAD312.8 million, driven by margin expansion of 320 basis points to 47.2 percent. This improvement was attributed to efficiencies in store occupancy and warehousing costs. SG&A expenses increased 26.2 percent to CAD222.5 million but decreased as a percentage of revenue to 33.5 percent, compared to 35.4 percent in the prior year.

Net income was reported at CAD42.4 million, an increase of 167.7 percent from CAD15.8 million in Q1 2025. Diluted earnings per share rose to CAD0.36 from CAD0.14. Adjusted Net Income grew 97.4 percent to CAD49.3 million, while Adjusted EBITDA increased 76.9 percent to CAD95.3 million, representing 14.4 percent of net revenue.

The company ended the quarter with CAD292.6 million in cash and cash equivalents, up from CAD100.7 million a year ago. Inventory rose slightly by 3.2 percent to CAD409.5 million. Aritzia opened 13 new boutiques and repositioned three others in the 12-month period, bringing the boutique count to 131.

Capital expenditure was CAD52.3 million in the quarter, focused mainly on boutique investments. The company noted a CAD10.3 million unrealized foreign exchange loss on an intercompany loan due to the weakening U.S. dollar.