ARITZIA: REVENUE GREW 44.1% TO C$1,169.8M; A C$97.4M TARIFF REFUND IS 840BP OF THE 1,330BP RISE IN GROSS MARGIN
By Pau Almar · Published
Q2 FY2027 · 8 OCTOBER 2026
Aritzia reported second-quarter net revenue of C$1,169.8m against C$812.1m, up 44.1% and 42.1% in constant currency, with comparable sales up 34.5% and 146 boutiques against 134. Reported gross margin rose 1,330bp to 57.1%, of which 840bp is a C$97.4m tariff refund; without it margin rose 490bp to 48.7%. Net income was C$201.7m against C$66.3m and diluted earnings per share C$1.70 against C$0.56. The company raised its fiscal 2027 net revenue outlook to C$4.78bn to C$4.88bn.
The United States grew 60.3% to C$779.4m, 66.6% of revenue, and supplied 82.0% of the C$357.8m increase; Canada grew 19.8% to C$390.4m. Digital grew 67.7% to C$402.9m and retail 34.1% to C$766.9m. Against the first quarter, digital sped up from 55.5% to 67.7% and the United States from 54.5% to 60.3%, while retail and Canada slowed; group growth was almost level, 43.4% then 44.1%. Currency added 2.0 points.
// KEY NUMBERS
Q2 FY2027 · 13 weeks ended 30 August 2026
| Revenue | CAD 1,169.8m |
|---|---|
| Reported growth | +44.1% |
| Constant-currency growth | +42.1% |
| Gross margin | 57.1% |
| Operating margin | 26.5% |
| Like-for-like | +34.5% |
| Net income | CAD 201.7m |
Income from operations was C$310.2m, 26.5% of revenue, against C$91.3m. Taking the refund out leaves C$212.7m, 18.2% of revenue against 11.2%. SG&A grew 38.1% and fell to 29.5% of revenue from 30.8%. Adjusted EBITDA was C$246.2m, 21.0% of revenue against 15.2%. Adjusted Net Income was C$156.0m, C$45.6m below reported net income.
Inventory rose 35.8% to C$714.9m against revenue up 44.1%, yet days of inventory lengthened to 108.5 from 105.0 because cost of goods sold rose only 31.4%. Payables and accrued liabilities rose 55.8%. Free cash flow was C$214.3m against C$62.6m, and the company repurchased C$125.3m of shares in the quarter. Cash was C$528.1m and the statement of financial position lists no borrowings.
The full-year Adjusted EBITDA margin outlook rose to about 20.0% from about 19.5%, which against 20.6% in the first half implies about 19.5% in the second. The third quarter is guided to 23% to 27% revenue growth against 44.1%, and the outlook includes no tariff refund benefit. The third-quarter release will show whether growth lands inside that range, and the Investor Day on 27 October 2026 whether a margin target above about 20.0% is set.
Source: Aritzia Inc., Aritzia Reports Second Quarter Fiscal 2027 Financial Results, 8 October 2026 (Q2 2027 earnings release) ↗
Analysis by Pau Almar, VGR.
VGR analysis is an independent commercial reading of publicly disclosed company information, written from the perspective of a fashion retail sector operator. It is not investment research and it is not advice to buy, sell or hold any security. VGR is not a regulated financial adviser. Figures are taken from official company materials; figures derived by VGR are labelled as such. Readers should reach their own conclusions and take professional advice where appropriate.