For FY26, Aritzia anticipates net revenue between CA$3.1 billion and CA$3.25 billion (~$2.26-2.37 billion), reflecting a growth of approximately 13 to 19 per cent YoY. This projection includes contributions from retail expansion, with plans to open at least 12 new boutiques and reposition five existing ones—of which 11 new openings and two repositions are planned in the US.
The adjusted EBITDA as a percentage of net revenue is expected to range between 15.5 and 16.5 per cent, up from 14.8 per cent YoY, supported by improved initial mark-ups (IMU), freight savings, smart spending, and cost efficiencies, though partially offset by increased US tariffs.
Capital cash expenditures are estimated at approximately CA$180 million, with CA$110 million allocated to boutique development for FY26 and FY27, and CA$70 million towards distribution centre upgrades, including a new Vancouver facility, and technology enhancements, Aritzia said in a press release.
Depreciation and amortisation are projected to be around CA$110 million, with the company basing its guidance on a foreign exchange rate of USD:CAD = 1.37.
Meanwhile, the company has posted robust net revenue of CA$663.3 million (~$484 million) in the first quarter (Q1) of FY26, soaring 33 per cent YoY. The growth was powered by a 19.3 per cent rise in comparable sales, driven by double-digit gains across all channels and regions.
Retail revenue jumped 34.2 per cent to CA$480.3 million, while e-commerce sales rose 30 per cent to CA$183 million. In the United States, Aritzia’s revenue surged 45.1 per cent YoY to CA$413 million, accounting for more than 62 per cent of total revenue.
The comparable sales grew 19 per cent, fuelled by double-digit growth in all channels and all geographies.
“Our results were driven by the strong performance of our Spring/Summer product, which resonated exceptionally well with our clients, as well as our optimized inventory position, strategic marketing investments and our new and repositioned boutique openings,” said Jennifer Wong, chief executive officer (CEO) at Aritzia. “In addition, we generated meaningful gross profit margin expansion and SG&A leverage, resulting in outstanding adjusted EPS growth of over 90 per cent. Our performance in the US, where net revenue increased a tremendous 45 per cent, continued to fuel our results.”
“Trends across the business remain strong, and we are pleased with the start to our second quarter. We continue to navigate macro developments from a position of financial and operational strength, as we adapt to the environment around us and execute across our key strategic growth levers - geographic expansion, digital growth and increased brand awareness,” said Wong.
The gross profit rose by 42.5 per cent to CA$312.8 million, with gross margin improving 320 basis points to 47.2 per cent, supported by store occupancy leverage and cost efficiencies. SG&A expenses grew at a slower pace of 26.2 per cent, leading to a 190-basis points (bps) improvement in SG&A as a share of revenue.
The adjusted EBITDA climbed 76.9 per cent to CA$95.3 million, while adjusted net income nearly doubled to CA$49.3 million. Net income more than doubled to CA$42.4 million, with earnings per diluted share increasing to CA$0.36 from CA$0.14 in the same period last year.
The cash and cash equivalents rose to CA$292.6 million, up significantly from CA$100.7 million a year ago, and inventory increased marginally by 3.2 per cent to CA$409.5 million.
ALCHEMPro News Desk (SG)
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