Aritzia Inc.

Aritzia reported first-quarter fiscal 27 net revenue of $951 million, up 43% year over year, with comparable sales up 35%. Gross profit was $478 million, up 53%, and gross margin was 50.3%, up 310 basis points year over year despite 190 basis points of tariff and de minimis pressure. Adjusted EBITDA was $192 million, up 81%, and adjusted EBITDA margin was 20.1%, up 410 basis points; adjusted net income per diluted share increased 96%. U.S. net revenue increased 55% to $638 million, Canada rose 25% to $313 million, digital net revenue increased 56% to $285 million, and retail net revenue increased 39% to $666 million. For Q2, management expects net revenue of $1.1 billion to $1.13 billion, up 35% to 39%; gross margin up 250 to 300 basis points; and SG&A leverage of 25 to 75 basis points. For the full year, revenue is now guided to $4.55 billion to $4.75 billion, gross margin to expand 175 to 225 basis points, SG&A to be flat to down 50 basis points, and adjusted EBITDA margin to be approximately 19.5%.

Jennifer Wong said the quarter showed sustained momentum across the whole business and emphasized that the company is still seeing strength carry into Q2. Her tone was highly confident: she said she has “never been more confident” in the business and repeatedly pointed to product, store expansion, digital improvements, and marketing as the connected drivers. She framed Aritzia’s next multiyear plan as coming later this fall and said the company is well positioned for growth in the U.S. and beyond.

Todd Ingledew focused on the financial proof points behind the quarter: $951 million in revenue, $478 million in gross profit, 50.3% gross margin, $305 million in SG&A, and $192 million in adjusted EBITDA. He highlighted that margin expansion was driven by IMU improvements, store occupancy leverage, lower markdowns, and smart spending, while also noting 190 basis points of gross margin pressure from tariffs and the suspension of de minimis. On the balance sheet, he cited $548 million of inventory, $472 million of cash, no debt, and no borrowings on the $300 million revolver; the company also repurchased about 565,000 shares for $66 million and plans to keep buying back shares opportunistically.

Analysts pressed on whether elevated comp growth can last, how Aritzia is planning inventory into the back half of the year, and whether the company is over-investing as sales outperform. Management said the business has strong momentum, inventory is well positioned, and the team has improved planning and allocation over the last 24 months. Questions also focused on gross margin math, tariff and de minimis impacts, the app’s contribution, larger-store productivity, and Canada’s durability; management said the app is contributing incremental sales in the high single digits, larger stores are matching smaller stores on sales per square foot, and Canada is still showing no sign of a slowdown in the data. When asked about the international marketing pilot, Jennifer Wong said the test was small but showed a “tremendous response” in traffic and conversion.