U.S. revenue rose 60% and now makes up two-thirds of the total. The Canadian retailer raised its full-year sales outlook to as much as C$4.88 billion, though its third-quarter guide implies growth will slow from here.
October 9, 2026
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A Canadian apparel brand delivered one of the strongest retail quarters of the season, and investors rewarded it accordingly.
Aritzia reported net revenue of C$1.17 billion for its fiscal second quarter, ended Aug. 30, up 44.1% from a year earlier. Comparable sales rose 34.5%. Net income tripled to C$201.7 million, or C$1.70 a diluted share, from C$66.3 million.
The refund
Part of that profit came from a one-time source. Aritzia received C$97.4 million in refunds of tariffs collected under the International Emergency Economic Powers Act. Excluding them, adjusted net income rose 122% to C$156 million, or C$1.31 a share. Reported gross margin of 57.1% included the refunds; the adjusted figure was 48.7%, up 4.9 percentage points. Adjusted Ebitda nearly doubled to C$246.2 million, a margin of 21%, up 5.9 points.
The refund is real cash. The adjusted figures are the better guide to how the business performed, and they still show earnings more than doubling.
Where the growth came from
The United States is driving Aritzia's growth. Revenue there rose 60.3% to C$779.4 million, 66.6% of the total. Canadian revenue rose 19.8% to C$390.4 million.
Digital sales grew 67.7% to C$402.9 million, which the company tied to its mobile app and marketing. Retail store revenue rose 34.1%, with 146 boutiques at quarter-end compared with 134 a year earlier.
"Strength was broad based across geographies, channels and product categories," Chief Executive Jennifer Wong said.
The outlook
Aritzia raised its full-year revenue forecast to C$4.78 billion to C$4.88 billion, growth of 29% to 32%, with comparable sales growth in the low 20s. It expects an adjusted Ebitda margin of about 20%, up from 17.8% last year, and its guidance excludes any further tariff refunds.
For the third quarter, it expects revenue of C$1.275 billion to C$1.325 billion, growth of 23% to 27%, with comparable sales up in the high teens. That is a meaningful step down from 44% and 34.5% in the second quarter, partly because the company is lapping the launch of its mobile app a year ago.
The company ended the quarter with C$528 million in cash and no debt, and has bought back about C$270 million of stock this fiscal year. Inventory was up 36%.
The stock
Aritzia shares rose about 18% to C$143.75 in Toronto on Friday, after closing Thursday at C$121.89.
Two views
On one view, Aritzia has become a U.S. growth story with expanding margins. American revenue is up 60%, digital is accelerating, adjusted profitability set a second-quarter record, and management raised guidance without counting on refunds.
On another, the comparisons get harder. Third-quarter growth is guided to roughly half the second-quarter pace, inventory is up more than a third, and an 18% move in a day leaves the stock pricing in that deceleration being shallow.
Next marker
Aritzia hosts an investor day on Oct. 27, where management has said it will lay out longer-term plans. Third-quarter comparable sales against the high-teens guide will show how steep the slowdown is once the app launch is in the base.