Aritzia (ATZ) Q2 2025 earnings summary

Executive summary

• Net revenue for Q2 2025 increased 15.3% year-over-year to $615.7 million (CAD 616 million), with comparable sales up 6.5%.

• U.S. net revenue surged 23.9% to $345.4 million, now 56.1% of total revenue, driven by new boutiques, e-commerce acceleration, and strong comps; Canadian growth was softer due to a weaker consumer environment.

• Retail net revenue rose 17.6% to $425.6 million, and eCommerce net revenue increased 10.4% to $190.0 million, led by U.S. traffic and successful product launches.

• Gross profit margin expanded by 520 basis points to 40.2%, aided by lower markdowns, improved inventory management, and IMU improvements.

• Net income reached $18.2 million, up 404.6% year-over-year, with adjusted net income up 618.5% to $24.5 million.

Financial highlights

• Q2 net revenue: $615.7 million (+15.3% YoY); U.S. net revenue: $345.4 million (+23.9% YoY); Canada: $270.3 million (+5.8% YoY).

• Retail channel net revenue: $425.6 million (+17.6% YoY); e-commerce: $190.0 million (+10.4% YoY).

• Gross profit: $247.5 million (+32.5% YoY); gross margin: 40.2% (+520 bps YoY).

• SG&A: $199.5 million (+16.6% YoY), mainly from digital marketing and infrastructure investments.

• Adjusted EBITDA: $55.2 million (+161% YoY); Adjusted EBITDA margin: 9.0% (+500 bps YoY).

• Inventory: $482.6 million (down 3.7% YoY); cash: $104.0 million; no debt drawn.

Outlook and guidance

• Q3 2025 net revenue expected at $675–$700 million (+3–7% YoY; +7–11% YoY excluding non-recurring items).

• Q3 gross margin to expand by ~400 bps YoY, despite higher freight costs; SG&A as % of revenue to rise ~100 bps YoY.

• FY25 net revenue guidance: $2.54–$2.60 billion (+9–11% YoY; +10–13% YoY excluding 53rd week).

• FY25 gross margin outlook raised to +450 bps YoY; Adjusted EBITDA margin to expand 400–450 bps; capital expenditures forecast at ~$230 million.

• 12–13 new boutiques and 3–4 repositions planned for FY25, mostly in the U.S.