“Aritzia achieved record-breaking net revenue of $1.04 billion in its third quarter of fiscal 2026, marking a 42.8% year-over-year increase fueled by robust US market expansion and comparable sales growth of 34.3%, while raising full-year guidance amid continued momentum in retail and e-commerce channels.”
Aritzia has posted impressive financial performance in its third quarter of fiscal 2026, with net revenue surging to a record $1.04 billion, representing a 42.8% increase from the same period last year. This growth was primarily propelled by exceptional demand in the United States, where the company continues to capitalize on its expansion strategy.
In the US, net revenue climbed 53.8% to $621.1 million, accounting for nearly 60% of the total business. This uptick stems from a combination of new boutique openings, enhanced e-commerce capabilities, and strong comparable sales at existing locations. The company’s focus on premium everyday luxury apparel has resonated well with American consumers, driving double-digit growth across both physical and digital storefronts.
Overall retail net revenue advanced 35.1% to $657.3 million, supported by the performance of repositioned boutiques and new stores. E-commerce also played a pivotal role, benefiting from the recent launch of a mobile app that has boosted online engagement and conversion rates.
Gross profit rose 43.6% to $478.9 million, with the gross margin expanding by 30 basis points to 46.0%. This improvement reflects efficient inventory management and favorable product mix, despite ongoing investments in supply chain enhancements. Selling, general, and administrative expenses as a percentage of net revenue declined by 170 basis points to 27.9%, demonstrating operational leverage amid the revenue expansion.
Adjusted net income per diluted share increased 55%, underscoring the profitability of the growth initiatives. The company has also progressed with its share repurchase program, buying back 473,700 shares for $41.3 million during the quarter.
Looking ahead, Aritzia has upgraded its fiscal 2026 outlook, now projecting net revenue between $3.62 billion and $3.64 billion. For the fourth quarter, expectations are set at $1.10 billion to $1.13 billion. This guidance incorporates plans for opening 13 new boutiques and repositioning four others across North America, with a heavy emphasis on further penetrating key US markets.
Key Growth Drivers
| Key Financial Metrics | Q3 FY2026 | Q3 FY2025 | % Change |
|---|---|---|---|
| Net Revenue | $1.04B | $728M | +42.8% |
| US Net Revenue | $621.1M | $403.7M | +53.8% |
| Retail Net Revenue | $657.3M | $486.5M | +35.1% |
| Gross Profit | $478.9M | $333.5M | +43.6% |
| Gross Margin | 46.0% | 45.7% | +30 bps |
| Adjusted EPS | $1.24 | $0.80 | +55% |
US Market Momentum : The 53.8% revenue increase in the US highlights successful boutique expansions and rising brand awareness, with comparable sales showing significant strength in major metropolitan areas.
Product and Marketing Strategy : Demand for fall/winter collections was amplified by targeted marketing campaigns and the new app, contributing to the 34.3% comparable sales growth overall.
Operational Efficiency : Margin expansion and SG&A leverage indicate disciplined cost control, even as the company invests in real estate and digital infrastructure.
Future Expansion Plans : With 13 new stores on the horizon, Aritzia aims to accelerate its footprint in high-potential US regions, positioning for sustained double-digit growth.
The stock reacted positively to the results, reflecting investor confidence in the company’s ability to navigate a competitive retail landscape while delivering consistent value to shareholders.
Disclaimer: This news report is for informational purposes only and does not constitute financial advice or tips.