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Aritzia Posts Big Profit Jump and Raises Growth Targets

Stronger sales, faster digital growth, disciplined inventory, rising margins have prompted a U.S.-focused store expansion.

Overview

  • Aritzia reported net income of $117.3 million and net revenue of $951 million in the first quarter, representing roughly a 43 percent revenue increase and an 80.5 percent rise in adjusted EBITDA to $191.6 million.
  • The company said digital sales accelerated by about 56 percent and the United States accounted for roughly two-thirds of revenue with U.S. sales up about 55 percent.
  • Aritzia issued full-year net revenue guidance of $4.55 billion to $4.75 billion and set plans to open 12 to 13 new boutiques and update four to five existing stores this fiscal year, with most new locations in the U.S.
  • Executives credited the quarter to strong demand for spring and summer product, disciplined inventory management that reduced markdowns, and continued investments in stores, marketing and omnichannel systems.
  • The firm is converting momentum into experiential expansion through the recent Fred Segal acquisition, a leased Melrose flagship and a planned large Vancouver flagship in 2027, a strategy that could increase U.S. store count toward a long-term opportunity of roughly 200 locations and broaden customer access and hiring where new boutiques open.