Canadian clothing retailer Aritzia reported sharply higher third-quarter revenue and profit, driven by strong comparable sales growth across channels.
For the three months ended 30 November 2025, net revenue climbed 42.8% to C$1.04bn ($749.4m), up from C$728.7m a year earlier.
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On a constant currency basis, revenue was 41.6% higher year-on-year (YoY).
Net income rose 87.5% to C$138.8m, representing 13.4% of net revenue, while adjusted net income rose 58.1% to C$131.2m.
Earnings per diluted share increased to C$1.16 from C$0.63 in the prior year’s quarter.
Comparable sales advanced 34.3%, reflecting demand for the company’s autumn and winter collections, alongside continued investment in digital initiatives and marketing activity.
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By GlobalDataThe US remained the main growth driver, with net revenue increasing 53.8% to C$621.1m.
The region accounted for 59.7% of total net revenue, underpinned by boutique expansion, e-commerce growth and higher comparable sales in existing locations.
Aritzia CEO Jennifer Wong said: “Our impressive growth in the US continued as net revenue increased 54%, highlighting our expanding awareness and the tremendous momentum of the Aritzia brand. In addition, we continued to expand our margins and delivered a 55% increase in adjusted net income per diluted share.”
In Canada, net revenue rose 29% to C$419.1m, supported by e-commerce momentum and improved comparable sales.
By channel, retail net revenue increased 35.1% to C$657.2m, while e-commerce revenue surged 58.2% to C$383m, making up 36.8% of total net revenue.
Over the past 12 months, the company opened 13 new boutiques and repositioned four, bringing the total number of boutiques to 139 at the end of the quarter.
Gross profit grew 43.6% to C$478.9m, with gross margin improving by 30 basis points to 46%.
The improvement reflected operating leverage on fixed costs, better markdown management and favourable freight trends, partly offset by additional tariffs and the removal of the de minimis exemption.
Selling, general and administrative expenses rose 34.7% to C$290.3m but declined to 27.9% of net revenue, marking a 170 basis point improvement compared with the prior year.
Adjusted EBITDA increased 52.2% to C$207.6m, equivalent to 20% of net revenue.
For the first nine months of fiscal 2026, net revenue reached C$2.52bn, up 36.5% YoY, while net income more than doubled to C$247.6m.
Cash and cash equivalents stood at C$620.5m at the end of the quarter, compared with C$207m a year earlier.
Looking ahead, the company expects fourth-quarter fiscal 2026 net revenue of between C$1.10bn and C$1.12bn, implying growth of around 23% to 26%.
For the full fiscal year, Aritzia forecasts net revenue in the range of C$3.61bn to C$3.64bn and capital cash expenditure of C$200m, including spending on new and repositioned boutiques and its distribution centre network.
