Canada's Aritzia Q3 FY26 revenue jumps 42.8% to $1.04 bn

The comparable sales grew 34.3 per cent YoY across all channels and geographies, while adjusted EBITDA climbed 52.2 per cent to $207.6 million, representing 20 per cent of net revenue. The net income surged 87.5 per cent to $138.9 million, with diluted earnings per share (EPS) rising to $1.16 from $0.63 a year earlier.

The United States remained Aritzia’s largest growth engine, with Q3 net revenue jumping 53.8 per cent to $621.1 million, accounting for nearly 60 per cent of group sales. Canadian revenue also performed strongly, increasing 29 per cent to $419.2 million, Aritzia said in a press release.

The retail revenue rose 35.1 per cent to $657.3 million, supported by new and repositioned boutiques as well as strong like-for-like sales. Over the past 12 months, Aritzia opened 13 new boutiques and repositioned four, taking its total boutique count to 139.

E-commerce was the fastest-growing channel, with revenue climbing 58.2 per cent to $383 million and now contributing 36.8 per cent of total sales. The company said this was driven by strong online traffic, high demand for its Fall-Winter range and the successful launch of its mobile app.

The gross profit increased 43.6 per cent to $478.9 million, with gross margin improving by 30 basis points to 46 per cent. The company said margin gains were driven by leverage on fixed costs, improved markdowns and freight tailwinds, partly offset by higher tariffs and the elimination of the US de minimis exemption.

Selling, general and administrative (SG&A) expenses grew 34.7 per cent to $290.4 million but fell to 27.9 per cent of revenue from 29.6 per cent a year earlier, reflecting operating leverage and savings from Aritzia’s smart spending initiative. Adjusted net income rose 58.1 per cent to $131.2 million, with adjusted diluted earnings per share increasing to $1.10 from $0.71.

Aritzia ended the quarter with cash and cash equivalents of $620.5 million, up sharply from $207.0 million a year earlier. Inventory increased 10.0 per cent to $508.2 million, reflecting preparations for continued sales growth. Capital cash expenditure totalled $55.6 million in the quarter, primarily directed towards new and repositioned boutiques and the construction of a new distribution centre in British Columbia.

“Our performance was fuelled by unparalleled demand for our Everyday Luxury offering. This was driven by our digital initiatives, which included the launch of our App, our new boutique openings and our strategic marketing investments. Our impressive growth in the United States continued as net revenue increased 54 per cent, highlighting our expanding awareness and the tremendous momentum of the Aritzia brand. In addition, we continued to expand our margins and delivered a 55 per cent increase in adjusted net income per diluted share,” said Jennifer Wong, chief executive officer of Aritzia.

For the fourth quarter of fiscal 2026, Aritzia expects net revenue of $1.1 billion to $1.125 billion, representing growth of around 23 per cent to 26 per cent. For full FY26, the company forecasts revenue of $3.615 billion to $3.64 billion, up about 33 per cent YoY, supported by continued US expansion and further boutique openings.

“Our strong performance has continued into the fourth quarter, as an outstanding client response to our Winter assortment fuelled record sales over the holiday period. Excellent operational execution across our three strategic growth levers—geographic expansion, digital growth and increased brand awareness—is driving sustained brand momentum and keeping Aritzia top of mind,” added Wong.

ALCHEMPro News Desk (SG)