Aritzia (ATZ) Q3 2025 earnings summary

Executive summary

• Net revenue for Q3 2025 increased 11.5% year-over-year to $728.7 million, with normalized growth at 16% excluding one-time events, driven by U.S. expansion, e-commerce momentum, and geographic growth.

• U.S. net revenue surged 23.6% to $403.7 million, now 55.4% of total net revenue, while Canada saw 5% normalized growth.

• Record-breaking Black Friday and holiday sales, with nearly 40% of stores achieving all-time sales records and e-commerce/retail channels hitting record daily highs.

• Opened 11 new and 3 repositioned boutiques in the last 12 months, including major flagships in SoHo and Chicago; 12 new U.S. boutiques and 3 repositions planned for FY2025.

• Strategic focus on U.S. and e-commerce growth, with long-term targets of $3.5–3.8 billion net revenue and ~19% adjusted EBITDA margin by FY2027.

Financial highlights

• Q3 2025 net revenue: $728.7M (+11.5% YoY); normalized net revenue up 16%; net income: $74.1M (+71.9% YoY); adjusted EBITDA: $136.4M (+48.7% YoY).

• Gross profit margin: 45.8% (up 430 bps YoY); SG&A as % of net revenue: 29.6% (up 90 bps); adjusted EBITDA margin: 18.7% (up 470 bps).

• Comparable sales grew 6.6%; normalized comparable sales up 9.2%.

• Free cash flow: $104.0M; cash and equivalents: $207M; inventory: $462M, up 16.4%.

• Adjusted net income per diluted share: $0.71, up 51.1% YoY.

Outlook and guidance

• Q4 2025 net revenue expected at $830–$850M, up 22–25% YoY (28–31% normalized); gross margin to expand ~400 bps; SG&A leverage of 100–200 bps.

• FY2025 net revenue outlook raised to $2.67–$2.69B, up ~15% (16–17% normalized); gross margin to expand ~450 bps; adjusted EBITDA margin to increase 400–450 bps.

• 12 new U.S. boutiques and 3 repositions planned for FY2025; capital expenditures of ~$230M.

• By FY2027, net revenue projected at $3.5–$3.8B, adjusted EBITDA margin ~19%, and cash balance of $1B+.

• High single-digit comp growth expected in Q4; continued top-line momentum and margin expansion into FY2026.