Aritzia (ATZ) Q2 2027 earnings summary

Executive summary

• Q2 FY27 net revenue rose 44.1% YoY to $1,169.8M; comparable sales grew 34.5%, with double-digit growth across channels and geographies.

• Adjusted EBITDA margin reached a second-quarter record 21.0%, up 590 bps; demand, digital initiatives and boutique expansion supported growth.

• Growth priorities include U.S. and digital expansion, brand awareness, and investment in infrastructure, people, technology, supply chain and marketing.

Financial highlights

• Adjusted gross profit rose 60.3% to $570.0M; Adjusted EBITDA increased 99.7% to $246.2M, excluding $97.4M in tariff refunds.

• Net income rose 204.2% to $201.7M, including $97.4M in tariff refunds; Adjusted net income increased 122.1% to $156.0M.

• Diluted EPS was $1.70 vs. $0.56; Adjusted diluted EPS was $1.31 vs. $0.59.

• Free cash flow increased 242.3% to $214.3M; net cash from operations was $303.2M vs. $145.2M.

Outlook and guidance

• Q3 FY27 revenue forecast: $1.275B–$1.325B, up 23%–27%; Adjusted gross margin expected to expand 100–150 bps, with SG&A as a share of revenue up 50–100 bps.

• FY27 revenue guidance: $4.78B–$4.88B, up 29%–32%; plan includes 12–13 new boutiques and four to five repositions.

• FY27 Adjusted gross margin expected to expand 225–275 bps; SG&A ratio expected flat to down 50 bps, with Adjusted EBITDA margin around 20%.

• FY27 capital cash expenditures forecast at ~$250M, including ~$210M for boutiques opening in FY27 and FY28; D&A expected at ~$130M. Guidance excludes tariff refunds and assumes USD/CAD of 1.38 for the rest of FY27.