Aritzia (ATZ) Q4 2026 earnings summary

Executive summary

• Achieved record Q4 net revenue of CAD 1.2 billion ($1.2 billion), up 33% year-over-year, and FY2026 net revenue of $3.7 billion, up 35.2%, driven by strong U.S. and digital expansion across all geographies and channels.

• U.S. net revenue grew 38% in Q4 and 43.8% for the year; Canadian net revenue increased 24% in Q4 and 23.4% for the year, supported by new boutiques and digital momentum.

• Digital net revenue rose 29% in Q4 and 36.1% for the year, with app adoption and international e-commerce sales up 53% year-over-year.

• Strategic focus on geographic expansion, digital growth, and increased brand awareness, including the acquisition of Fred Segal and flagship leases.

• Significant investments in infrastructure, people, and technology support long-term growth.

Financial highlights

• Q4 2026 net income increased 34.8% to $134.3 million; FY2026 net income up 83.8% to $381.8 million.

• Gross profit margin improved to 43.3% in Q4 (+90 bps YoY) and 44.9% in FY2026 (+180 bps YoY), despite 390 bps tariff/de minimis pressure.

• Adjusted EBITDA rose 37% to $220.5 million in Q4; FY2026 Adjusted EBITDA up 59% to $646.2 million.

• Free cash flow in FY2026 surged to $487.1 million from $95.6 million in FY2025.

• Liquidity strong: $592.1 million cash, no debt, and $314 million undrawn credit facility at year-end.

Outlook and guidance

• Q1 fiscal 2027 net revenue expected at $900–$925 million, up 36–39% year-over-year, with ~30% comp growth.

• Fiscal 2027 net revenue forecasted at $4.4–$4.6 billion, up 19–24%, with mid-to-high teens comp growth.

• Gross margin for fiscal 2027 to rise 150–200 bps; adjusted EBITDA margin expected at ~19%.

• CapEx planned at $250 million, mainly for new/repositioned boutiques; plan to open 12–13 new boutiques and reposition 4–5.

• SG&A as % of revenue to decline 50–100 bps in Q1 and remain flat to down 50 bps for FY2027.