Aritzia (ATZ) Q2 2026 earnings summary

Executive summary

• Q2 2026 net revenue rose 31.9% year-over-year to $812.1 million, with comparable sales up 21.6% and double-digit growth across all channels and geographies, led by U.S. eCommerce.

• Net income increased 263.4% to $66.3 million, and adjusted net income per diluted share grew 181% to $0.59.

• U.S. net revenue surged 40.7%, comprising 59.9% of total net revenue, supported by new and repositioned boutiques and strong brand awareness.

• Strategic investments in marketing, infrastructure, and digital initiatives fueled growth and brand expansion.

• Inventory and cash positions remained strong, supporting ongoing growth initiatives.

Financial highlights

• Gross profit increased 43.7% to $355.6 million, with gross margin expanding 360 basis points to 43.8%.

• Adjusted EBITDA was $122.7 million, up 122.5% year-over-year; adjusted EBITDA margin expanded 610 basis points to 15.1%.

• Adjusted net income increased 184.6% to $69.8 million; free cash flow was $62.6 million versus negative $5.7 million last year.

• SG&A expenses were $250 million, leveraging 160 basis points to 30.8% of net revenue.

• Inventory ended at $526.6 million, up 9.1% year-over-year; cash position strong at $352.3 million with no debt.

Outlook and guidance

• Q3 2026 net revenue expected at $875–$900 million, up 20–24% year-over-year, with double-digit comp growth.

• Full-year net revenue guidance raised to $3.3–$3.35 billion, representing 21–22% growth; adjusted EBITDA margin forecast for fiscal 2026 remains at 15.5–16.5%.

• Gross margin for Q3 and SG&A as a percentage of revenue expected to be flat year-over-year.

• Capital expenditures for Fiscal 2026 expected at ~$200 million, including investments in boutiques and distribution centers.

• Fiscal 2027 adjusted EBITDA margin now expected in the high teens, revised from prior outlook of ~19%, due to U.S. tariff pressures.