Aritzia (ATZ) Q1 2026 earnings summary

Executive summary

• Net revenue reached $663.3 million in Q1 2026, up 33% year-over-year, with strong brand momentum, 19.3% comparable sales growth, and robust product demand across all channels and geographies.

• U.S. net revenue surged 45.1% to $413.0 million, now 62.3% of total revenue, driven by real estate expansion and strong eCommerce momentum.

• Retail net revenue rose 34.2% to $480.3 million; eCommerce net revenue increased 30% to $183.0 million.

• Gross profit margin expanded 320 bps to 47.2%; SG&A as a percentage of revenue improved by 190 bps to 33.5%.

• Net income grew 167.7% to $42.4 million; adjusted EBITDA increased 76.9% to $95.3 million.

Financial highlights

• Adjusted EBITDA was $95.3 million (14.4% margin), up 76.9% year-over-year; excluding $10.3 million FX losses, adjusted EBITDA margin was 16.0%.

• Adjusted net income per diluted share was $0.42, up 90.9% year-over-year.

• Free cash flow turned positive at $24.4 million versus negative $68.3 million in Q1 2025.

• Inventory at period end was $409.5 million, a 3.2% increase year-over-year; cash and equivalents totaled $292.6 million.

• Retail net revenue: $480.3 million (+34.2%); eCommerce net revenue: $183.0 million (+30%).

Outlook and guidance

• Q2 2026 net revenue expected between $730–$750 million, up 19–22% year-over-year; gross margin to rise ~100 bps, SG&A as % of revenue to fall ~100 bps.

• Fiscal 2026 net revenue guidance raised to $3.10–$3.25 billion (13–19% growth); adjusted EBITDA margin expected at 15.5–16.5%.

• At least 12 new boutiques and 5 repositions planned, with most expansion in the U.S.; capital expenditures projected at ~$180 million.

• Adjusted EBITDA margin for fiscal 2026 expected at 15.5–16.5%; targeted at 19% by FY2027.

• Tariff mitigation and supply chain diversification ongoing; further margin expansion targeted for fiscal 2027.