Canadian fashion label Aritzia reported impressive financial results in the second quarter of fiscal 2026. Business in the USA in particular developed dynamically. Net sales rose by 31.9 percent to 812.1 million Canadian dollars (around 500.31 million euros). Like-for-like sales increased by 21.6 percent.
USA as a growth driver
Aritzia experienced particularly strong growth in the US market. Net sales in the United States increased by 40.7 percent to 486.1 million Canadian dollars – a clear sign of increasing brand affinity and market penetration in the USA.
Aritzia also reached new highs on the profitability side. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 122.5 percent to 122.7 million Canadian dollars. Adjusted earnings per diluted share climbed 181 percent to C$0.59.
“Our performance was driven by strong demand for our high-quality and beautiful products, including the excellent response to the launch of our fall collection,” said CEO Jennifer Wong. In addition, a solid inventory position, targeted marketing investments and new boutique openings contributed to the success.
The gross profit margin increased significantly by 360 basis points to 43.8 percent, further evidence of the company’s operational efficiency.
Positive outlook – despite challenges in global trade
According to the company, the strong business development continued in the third quarter. Aritzia expects net sales to be between $875 million and $900 million, up 20 percent to 24 percent from the same period last year.
For the full fiscal year 2026, Aritzia expects sales of between 3.30 and 3.35 billion Canadian dollars, an increase of 21 to 22 percent compared to the previous year. The adjusted EBITDA margin is expected to be 15.5 to 16.5 percent.
Customs concerns weigh on forecast for 2027
At the same time, the company points to ongoing uncertainties related to US trade policy. Due to counter-tariffs and the elimination of the de minimis exception, Aritzia has lowered its forecast for the adjusted EBITDA margin in fiscal year 2027 from previously expected around 19 percent to a value in the high teens.
Capital expenditure for the 2026 financial year is estimated at around 200 million Canadian dollars. Plans include the opening of new boutiques and the construction of a new distribution center in British Columbia.
Despite geopolitical challenges, the company remains robust and confident. “We remain agile as we navigate tariff-related developments from a position of strength,” said Wong. “The momentum in our business, our proven operating model and our healthy balance sheet give us confidence as we move forward. We will capitalize on our tremendous growth opportunities in the United States and beyond.”
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