Key Numbers
- $812.1 Million: Net revenue in Q2 2026, a 31.9% increase year over year.
- 40.7%: Revenue growth in the United States, which now accounts for nearly 60% of total sales.
- 21.6%: Comparable sales growth, indicating strong demand across all channels.
- 181.0%: Increase in adjusted net income per diluted share to $0.59.
Aritzia (TSX:ATZ) delivered a standout second quarter, showcasing explosive revenue growth driven by a 21.6% surge in comparable sales. The company’s strategic expansion in the United States continued to pay off, with U.S. sales climbing over 40% to become the primary revenue driver. This top-line success was matched by a significant expansion in profitability, as adjusted net income per share grew by more than 180%.
CEO Jennifer Wong credited the strong performance to robust demand for Aritzia’s Fall collection, strategic marketing, and new boutique openings. Both sales channels posted impressive gains, with retail net revenue increasing 34.3% and eCommerce revenue climbing 26.5%. The company also demonstrated strong operational efficiency, as its gross profit margin expanded by 360 basis points to 43.8% due to improved product margins and lower warehousing costs.
Looking ahead, the company’s momentum appears set to continue, with Aritzia forecasting net revenue growth between 20% and 24% for the third quarter. For the full fiscal year 2026, it expects revenue to increase by approximately 21% to 22%. However, the company noted that U.S. tariffs and the elimination of a duty-free shipping exemption have caused it to slightly lower its profitability outlook for Fiscal 2027.
With its rapid top-line expansion, particularly in the vast U.S. market, and its ability to significantly grow earnings, Aritzia presents a compelling case for growth-oriented investors focused on the retail sector. Year to date, the stock has risen by around 70%, as it has been one of the best stocks on the TSX.