Aritzia (ATZ) Q1 2027 earnings summary

Executive summary

• Net revenue grew 43.4% year-over-year to $951.0 million, driven by strong omni-channel performance, robust client demand, and significant U.S. and digital growth.

• Adjusted EBITDA margin reached a record 20.1%, up 410 basis points, and adjusted EPS increased 96% year-over-year.

• Net income rose 176.6% to $117.3 million, with adjusted net income per diluted share at $0.96.

• Growth was fueled by geographic expansion, digital acceleration, and increased brand awareness, with continued momentum into Q2.

• Maintained a robust balance sheet with $471.9 million in cash and no debt.

Financial highlights

• Comparable sales rose 35.1% year-over-year; digital net revenue up 55.5% to $284.7 million; retail net revenue up 38.7% to $666.3 million.

• Gross profit increased 52.8% to $478.0 million, with gross margin expanding 310 basis points to 50.3%.

• SG&A expenses were $305 million, improving as a percentage of revenue, down 150 bps to 32.0%.

• Adjusted EBITDA was $191.6 million, up 80.5% year-over-year.

• Inventory ended at $547.8 million, up 33.8% year-over-year; cash position was $471.9 million.

Outlook and guidance

• Q2 2027 net revenue expected between $1.10 billion and $1.125 billion, up 35–39% year-over-year.

• Fiscal 2027 net revenue guidance raised to $4.55–$4.75 billion, representing 23–28% growth.

• Gross profit margin for the year expected to expand 175–225 basis points; adjusted EBITDA margin forecast at approximately 19.5%.

• SG&A as a percentage of net revenue expected to be flat to down 50 basis points for the year.

• Capital expenditures for Fiscal 2027 projected at ~$250 million, mainly for new and repositioned boutiques.