Aritzia Reports First Quarter Fiscal 2026 Financial Results

Core Insights - The company reported a net revenue of $663 million for Q1 2026, marking a 33% increase compared to the previous year, driven by strong performance across all channels and geographies [1][5][39] - Comparable sales grew by 19%, with significant contributions from the Spring/Summer product line and strategic marketing investments [1][4] - The U.S. market showed exceptional growth, with net revenue increasing by 45% to $413 million, representing 62.3% of total net revenue [5][6] Financial Performance - Retail net revenue rose by 34.2% to $480.3 million, while eCommerce net revenue increased by 30% to $183 million [5][39] - Gross profit increased by 42.5% to $312.8 million, with a gross profit margin of 47.2%, up from 44.0% [7][39] - Selling, general and administrative (SG&A) expenses grew by 26.2% to $222.5 million, but as a percentage of net revenue, it decreased to 33.5% from 35.4% [8][39] Earnings and Adjusted Metrics - Net income surged by 167.7% to $42.4 million, with net income per diluted share increasing to $0.36 from $0.14 [10][12] - Adjusted EBITDA rose by 76.9% to $95.3 million, representing 14.4% of net revenue, compared to 10.8% in Q1 2025 [11][41] - Adjusted net income increased by 97.4% to $49.3 million, with adjusted net income per diluted share at $0.42, up from $0.22 [12][41] Geographic Performance - In the United States, net revenue reached $413 million, a 45.1% increase from $284.7 million in Q1 2025, driven by real estate expansion and strong sales in existing boutiques [6][39] - Canadian net revenue increased by 17% to $250.3 million, supported by growth in both eCommerce and retail channels [6][39] Outlook - For Q2 2026, the company anticipates net revenue between $730 million and $750 million, reflecting growth of approximately 19% to 22% [14] - The company expects gross profit margin to increase by about 100 basis points and SG&A as a percentage of net revenue to decrease by approximately 100 basis points compared to Q2 2025 [14][16] - The full-year outlook for Fiscal 2026 includes net revenue expectations of $3.10 billion to $3.25 billion, representing growth of approximately 13% to 19% [16][17]