Aritzia reports record revenue in fourth quarter, hits 2027 target a year early

While its U.S. business continues to lead Aritzia’s growth, sales in the mature Canadian retail market are holding up.  Photo by Peter J Thompson/Postmedia

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Aritzia Inc. reported record results for its fourth quarter, and hit its fiscal 2027 revenue target one year early, chief executive Jennifer Wong said on its conference call Thursday.

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The Vancouver-based fashion chain’s net revenue grew nearly 33 per cent to just shy of $1.2 billion for the three months ending March 1, beating both analysts’ forecasts and Aritzia’s own guidance for the quarter. Net income grew 35 per cent to $134 million.

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Adjusted net income, which excludes the impact of one-time items, increased 41 per cent to $138 million. Adjusted earnings per share were $1.15, up from $0.83 a year earlier and above analysts’ forecasts of $1.03 per share.

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“Strong double-digit growth across new, existing, and reactivated clients has been a key contributor to the outstanding momentum in our business,” Wong said on the call.

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Aritzia now has 76 boutiques in the United States, where net revenue increased 38 per cent to $755 million. The U.S. accounts for 64 per cent of Aritzia’s net revenue, and the retailer plans to open in four new markets this year: Birmingham, Fort Worth, New Orleans and St. Louis.

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Chief financial officer Todd Ingledew said the company is currently paying a “global surcharge” of 10 per cent on imports from key sourcing markets, referring to new U.S. tariffs imposed by President Donald Trump in February.

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The U.S. Court of International Trade deemed those duties unlawful on Thursday, but the ruling only applies to three plaintiffs (two businesses and the state of Washington).

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Aritzia announced last year that it shifted fulfilment of all American orders to its Ohio distribution centre before the de minimis exemption — the loophole that allowed low-value orders to ship to the U.S. duty-free — ended on Aug. 29.

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Wong said the company expects to begin work on a second distribution centre in the U.S. later this year or early next.

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Aritzia’s brand awareness is “growing rapidly in the United States at a time when other brands such as Abercrombie, Lululemon, and Banana Republic are struggling,” Stifel Nicolaus Canada Inc. analyst Martin Landry said in a note.

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“Aritzia seems to have found a niche, offering high quality products at price points above mainstream brands,” he said. “This is conferring a cachet to the brand, which resonates with customers.”

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Double-digit comparable sales growth in existing stores and strong sales at new and expanded boutiques helped overall retail net revenue grow to $698 million, up 35 per cent from last year.

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Wong said the new U.S. stores that opened in fiscal 2026 are tracking to pay back in less than a year, beating Aritzia’s target of 12 to 18 months.

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“Our boutiques enhance brand recognition, drive new client acquisition, and support digital growth, particularly in new markets,” she said.

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While its U.S. business continues to lead Aritzia’s growth, sales in the mature Canadian market are holding up. Net revenue in the country increased 24 per cent to $431 million, driven by strong comparable sales both in stores and online.