Aritzia’s hot streak continues with net income up 176% in Q1

An Aritzia Inc. store at Robson and Granville streets in Vancouver, B.C. Photo by Arlen Redekop/Postmedia files

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Aritzia Inc.’s hot streak is continuing into its new fiscal year as first-quarter net revenue grew 43 per cent on momentum spanning “all geographies, channels and categories,” the women’s clothing retailer said Thursday.

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“Robust demand for our spring and summer product, supported by our healthy inventory position, fueled this phenomenal performance,” Aritzia chief executive Jennifer Wong said in a release.

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The Vancouver-based company reported $951 million in net revenue for the three months ended May 31, beating analysts’ average estimate of $922 million. Net income increased 176 per cent to $117 million.

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Adjusted net income, which excludes the impact of non-recurring items, increased 98 per cent to nearly $114 million. Adjusted earnings per share were $0.96 cents per share, up from $0.49 cents per share a year earlier and above the $0.88 cents per share forecasted by analysts.

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Aritzia reported 35 per cent growth in comparable sales, a metric that combines revenue growth from online sales and stores that have been open for more than a year.

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The retailer ended the first quarter with 143 stores across Canada and the United States, up from 131 locations a year earlier. It said strong comparable sales in both countries and in new and renovated boutiques helped retail net revenue grow nearly 39 per cent to $666 million.

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Digital net revenue gained “significant momentum” and spiked 55 per cent to nearly $285 million, driven by traffic growth, Aritzia’s mobile app and investments in digital marketing.

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The company said its ongoing U.S. expansion strategy, as well as “outstanding” comparable sales growth online and in existing stores, helped raise net revenue in the country by 54 per cent to $638 million. The U.S. now accounts for 67 per cent of the retailer’s business.

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Canadian net revenue was up 25 per cent to just shy of $313 million, also driven by digital and in-store comparable sales growth.

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When Aritzia released its fourth quarter results in May, it said it had hit its 2027 revenue target one year early. The company said Thursday it now expects fiscal 2027 net revenue in the range of $4.55 billion to $4.75 billion, representing growth of approximately 23 per cent to 28 per cent from fiscal 2026.

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