Aritzia (ATZ) Q1 2026 earnings summary

Executive summary

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

• U.S. net revenue surged 45.1% to $413.0 million, now 62.3% of total revenue, driven by new/repositioned boutiques and increased brand awareness; Canadian revenue rose 17%.

• Retail net revenue rose 34.2% to $480.3 million; eCommerce net revenue increased 30% to $183.0 million, with U.S. e-commerce traffic up nearly 50%.

• Focused on U.S. geographic expansion, digital growth, and increased brand awareness as key strategic pillars.

• Continued investment in infrastructure, people, technology, and supply chain to support long-term growth.

Financial highlights

• Gross profit was $313 million, up 42% year-over-year; gross margin expanded 320 basis points to 47.2%.

• Adjusted EBITDA was $95.3 million, up 76.9% year-over-year; adjusted EBITDA margin expanded 360 basis points to 14.4%.

• Net income grew 167.7% to $42.4 million; 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 quarter-end was $409.5 million, up 3.2% year-over-year; cash position was $292.6 million with no debt.

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 2027 targeted at approximately 19%.

• Guidance accommodates for a range of scenarios, including potential consumer slowdown and tariff changes.