"We delivered net revenue of $812 million in the second quarter of Fiscal 2026, a 32% increase compared to last year. Comparable sales grew 22%, with double-digit growth in all channels and all geographies, led by our United States eCommerce business. Our performance was fueled by robust demand for our high-quality beautiful products, including an outstanding response to our Fall launch, as well as our strong inventory position, strategic marketing investments and new boutique openings. Exceptional strength in the United States continued to drive our results, as net revenue increased 41%, underscoring the growing awareness of the Aritzia brand and affinity for Everyday LuxuryTM," said Jennifer Wong, Chief Executive Officer. "In addition, we generated meaningful gross profit margin expansion and SG&A leverage, resulting in growth in adjusted net income per diluted share of over 180%."
Ms. Wong continued, "Our broad-based momentum has continued into the third quarter of Fiscal 2026, driven by the ongoing positive response to our product and strong execution across our three strategic growth levers - geographic expansion, digital growth and increased brand awareness. We remain agile as we navigate tariff-related developments from a position of strength. The momentum in our business, our proven operating model and our healthy balance sheet give us confidence in our path forward as we capitalize on our vast opportunity for growth in the United States and beyond."
Second Quarter Highlights
For Q2 2026, compared to Q2 20251:
Net revenue increased 31.9% to $812.1 million, with comparable sales2 growth of 21.6%
United States net revenue increased 40.7% to $486.1 million, comprising 59.9% of net revenue
Retail net revenue increased 34.3% to $571.7 million
eCommerce net revenue increased 26.5% to $240.3 million, comprising 29.6% of net revenue
Gross profit margin2 increased 360 bps to 43.8% from 40.2%
Selling, general and administrative expenses as a percentage of net revenue decreased 160 bps to 30.8% from 32.4%
Adjusted EBITDA2 increased 122.5% to $122.7 million. Adjusted EBITDA2 as a percentage of net revenue increased 610 bps to 15.1% from 9.0%
Net income increased 263.4% to $66.3 million, or 8.2% from 3.0% as a percentage of net revenue. Net income per diluted share increased 250.0% to $0.56 per share, compared to $0.16 per share in Q2 2025
Adjusted Net Income2 increased 184.6% to $69.8 million. Adjusted Net Income per Diluted Share2 increased 181.0% to $0.59 per share, compared to $0.21 per share in Q2 2025
Second Quarter Results Compared to Q2 2025
(unaudited, in thousands of Canadian dollars, unless otherwise noted)
Q2 2026
Q2 2025
Change
% of netrevenue
% of net revenue
%
bps
Retail net revenue
$ 571,717
70.4 %
$ 425,621
69.1 %
34.3 %
eCommerce net revenue
240,337
29.6 %
190,042
30.9 %
26.5 %
Net revenue
$ 812,054
100.0 %
$ 615,663
100.0 %
31.9 %
Gross profit
$ 355,630
43.8 %
$ 247,486
40.2 %
43.7 %
360
Selling, general and administrative ("SG&A")
$ 250,213
30.8 %
$ 199,502
32.4 %
25.4 %
(160)
Net income
$ 66,301
8.2 %
$ 18,247
3.0 %
263.4 %
520
Net income per diluted share
$ 0.56
$ 0.16
250.0 %
Adjusted EBITDA2
$ 122,720
15.1 %
$ 55,167
9.0 %
122.5 %
610
Adjusted Net Income2
$ 69,822
8.6 %
$ 24,536
4.0 %
184.6 %
460
Adjusted Net Income per Diluted Share2
$ 0.59
$ 0.21
181.0 %
Net revenue increased 31.9% to $812.1 million, compared to $615.7 million in Q2 2025, or increased 31.8% on a constant currency2 basis, driven by strong comparable sales growth and the Company's new and repositioned boutiques. Comparable sales2 grew 21.6%, as all channels and all geographies generated positive double-digit growth. This was driven by robust demand for the Company's Summer assortment and an outstanding client response to the launch of its Fall collection, as well as the Company's strong inventory position and strategic marketing investments.
In the United States, net revenue increased 40.7% to $486.1 million, compared to $345.4 million in Q2 2025. This was fueled by the Company's real estate expansion strategy, continued momentum in eCommerce and strong comparable sales growth in existing boutiques.
Net revenue in Canada increased 20.6% to $326.0 million, compared to $270.3 million in Q2 2025, driven by the strong performance of the Company's product, supported by strategic marketing investments.
Retail net revenue increased 34.3% to $571.7 million, compared to $425.6 million in Q2 2025. The net revenue increase was driven by high-teens comparable sales growth in existing boutiques and the strong performance of the Company's new and repositioned boutiques. In the last 12 months, the Company opened 13 new boutiques and repositioned four boutiques. Boutique count3 at the end of Q2 2026 totaled 134 compared to 122 boutiques at the end of Q2 2025.
eCommerce net revenue increased 26.5% to $240.3 million, compared to $190.0 million in Q2 2025. The continued momentum in eCommerce was fueled by strong traffic growth due to the positive response to the Company's product and its investments in digital marketing.
Gross profit increased 43.7% to $355.6 million, compared to $247.5 million in Q2 2025. Gross profit margin2 was 43.8%, compared to 40.2% in Q2 2025. The 360 bps increase in gross profit margin was primarily driven by IMU improvements, leverage on store occupancy costs, lower warehousing costs, improved markdowns and savings from the Company's smart spending initiative, partially offset by the impact of additional tariffs.
SG&A expenses increased 25.4% to $250.2 million, compared to $199.5 million in Q2 2025. SG&A expenses were 30.8% of net revenue, compared to 32.4% in Q2 2025. The 160 bps improvement was primarily driven by expense leverage and savings from the Company's smart spending initiative.
Net income was $66.3 million, an increase of 263.4% compared to $18.2 million in Q2 2025, primarily attributable to the factors described above as well as an increase in other income mainly due to unrealized gains on derivatives, partially offset by an increase in income tax expense. Net income per diluted share was $0.56 per share, an increase of 250.0% compared to $0.16 per share in Q2 2025.
Adjusted EBITDA2 was $122.7 million or 15.1% of net revenue, an increase of 122.5% compared to $55.2 million or 9.0% of net revenue in Q2 2025.
Adjusted Net Income2 was $69.8 million, an increase of 184.6% compared to $24.5 million in Q2 2025. Adjusted Net Income per Diluted Share2 was $0.59 per share, an increase of 181.0% compared to $0.21 per share in Q2 2025.
Cash and cash equivalents totaled $352.3 million, compared to $104.0 million at the end of Q2 2025.
Inventory was $526.6 million, an increase of 9.1%, compared to $482.6 million at the end of Q2 2025.
Capital cash expenditures (net of proceeds from lease incentives)2 were $59.6 million, compared to $49.7 million in Q2 2025. Capital cash expenditures in Q2 2026 primarily consist of capital investments in new and repositioned boutiques and the Company's new distribution centre being constructed in British Columbia.
YTD 2026 Compared to YTD 2025
(unaudited, in thousands of Canadian dollars, unless otherwise noted)
YTD 2026
YTD 2025
Change
% of net revenue
% of net revenue
%
bps
Retail net revenue
$ 1,052,023
71.3 %
$ 783,464
70.3 %
34.3 %
eCommerce net revenue
423,347
28.7 %
330,829
29.7 %
28.0 %
Net revenue
$ 1,475,370
100.0 %
$ 1,114,293
100.0 %
32.4 %
Gross profit
$ 668,427
45.3 %
$ 467,030
41.9 %
43.1 %
340
SG&A
$ 472,696
32.0 %
$ 375,792
33.7 %
25.8 %
(170)
Net income
$ 108,692
7.4 %
$ 34,080
3.1 %
218.9 %
430
Net income per diluted share
$ 0.92
$ 0.30
206.7 %
Adjusted EBITDA2
$ 218,054
14.8 %
$ 109,044
9.8 %
100.0 %
500
Adjusted Net Income2
$ 119,152
8.1 %
$ 49,524
4.4 %
140.6 %
370
Adjusted Net Income per Diluted Share2
$ 1.00
$ 0.43
132.6 %
Net revenue increased 32.4% to $1.48 billion, compared to $1.11 billion in YTD 2025, or increased 31.2% on a constant currency2 basis, driven by the Company's new and repositioned boutiques and strong comparable sales growth. Comparable sales2 grew 20.5%, fueled by positive client response to the Company's products, the Company's strong inventory position and strategic marketing investments. Results continue to be driven by performance in the United States, where net revenue increased 42.7% to $899.1 million, compared to $630.1 million in YTD 2025. Net revenue in Canada increased 19.0% to $576.3 million, compared to $484.2 million in YTD 2025.
Retail net revenue increased 34.3% to $1.05 billion, compared to $783.5 million in YTD 2025. The increase in net revenue was primarily driven by strong performance of the Company's new and repositioned boutiques, as well as double-digit comparable sales growth in existing boutiques in both countries.
eCommerce net revenue increased 28.0% to $423.3 million, compared to $330.8 million in YTD 2025. The increase was primarily driven by traffic growth in the United States, fueled by the Company's investments in digital marketing.
Gross profit increased 43.1% to $668.4 million, compared to $467.0 million in YTD 2025. Gross profit margin2 was 45.3% compared to 41.9% in YTD 2025. The 340 bps increase in gross profit margin was primarily driven by leverage on store occupancy costs, IMU improvements, lower warehousing costs and savings from the Company's smart spending initiative, partially offset by the impact of additional tariffs.
SG&A expenses increased 25.8% to $472.7 million, compared to $375.8 million in YTD 2025. SG&A expenses were 32.0% of net revenue compared to 33.7% in YTD 2025. The 170 bps improvement was primarily driven by expense leverage and savings from the Company's smart spending initiative.
Net income was $108.7 million, an increase of 218.9% compared to $34.1 million in YTD 2025, primarily attributable to the factors described above. Net income per diluted share was $0.92, an increase of 206.7%, compared to $0.30 per share in YTD 2025.
Adjusted EBITDA2 was $218.1 million, or 14.8% of net revenue, an increase of 100.0%, compared to $109.0 million, or 9.8% of net revenue in YTD 2025.
Adjusted Net Income2 was $119.2 million, an increase of 140.6%, compared to $49.5 million in YTD 2025. Adjusted Net Income per Diluted Share2 was $1.00, an increase of 132.6%, compared to $0.43 in YTD 2025.
Capital cash expenditures (net of proceeds from lease incentives)2 were $111.9 million, compared to $105.2 million in YTD 2025. Capital cash expenditures in YTD 2026 primarily consist of capital investments in new and repositioned boutiques and the Company's new distribution centre being constructed in British Columbia.
Outlook
Aritzia expects the following for the third quarter of Fiscal 2026:
Based on quarter-to-date trends, Aritzia expects net revenue in the range of $875 million to $900 million, representing growth of approximately 20% to 24%. The Company expects gross profit margin to be approximately flat and SG&A as a percentage of net revenue to also be approximately flat for the third quarter of Fiscal 2026 compared to the third quarter of Fiscal 2025.
Aritzia expects the following for Fiscal 2026:
Net revenue in the range of $3.30 billion to $3.35 billion4, representing growth of approximately 21% to 22% from Fiscal 2025. This includes the contribution from retail expansion with 13 new boutiques and four boutique repositions5. Twelve new boutiques5 and two repositions are expected to be in the United States with the remainder in Canada.
Adjusted EBITDA as a percentage of net revenue2 to be approximately 15.5% to 16.5% compared to 14.8% in Fiscal 2025, driven by IMU improvements, freight tailwinds, savings from the Company's smart spending initiative and expense leverage, partially offset by higher U.S. tariffs.
Capital cash expenditures (net of proceeds from lease incentives)2 of approximately $2006 million. This includes approximately $120 million related to investments in new and repositioned boutiques expected to open in Fiscal 2026 and Fiscal 2027. It also includes approximately $80 million related to the Company's distribution centre network, including its new facility in the Vancouver area, and technology investments.
Depreciation and amortization of approximately $110 million.
Foreign exchange rate assumption for Fiscal 2026 USD:CAD = 1.38.
For Fiscal 2027, the Company now expects Adjusted EBITDA as a percentage of net revenue2 to be in the high teens compared to its prior outlook of approximately 19%, due to additional pressure from U.S. reciprocal tariffs and the elimination of the de minimis exemption.
The foregoing outlook is based on management's current strategies and may be considered forward-looking information under applicable securities laws. Such outlook is based on estimates and assumptions made by management regarding, among ...
