"We delivered record net revenue of $1.04 billion in the third quarter of Fiscal 2026, a 43% increase compared to last year. Comparable sales grew 34%, with exceptional growth in all channels and all geographies. Our performance was fueled by unparalleled demand for our Everyday LuxuryTM offering. This was driven by our digital initiatives, which included the launch of our App, our new boutique openings and our strategic marketing investments. Our impressive growth in the United States continued as net revenue increased 54%, highlighting our expanding awareness and the tremendous momentum of the Aritzia brand," said Jennifer Wong, Chief Executive Officer. "In addition, we continued to expand our margins and delivered a 55% increase in adjusted net income per diluted share."
"Our strong performance has continued into the fourth quarter, as an outstanding client response to our Winter assortment fueled record sales over the holiday period. Excellent operational execution across our three strategic growth levers - geographic expansion, digital growth and increased brand awareness - is driving sustained brand momentum and keeping Aritzia top of mind. This momentum, along with our proven operating model and healthy balance sheet, gives us confidence in our long-term goals for the business and our ability to deliver profitable growth for our shareholders," continued Ms. Wong.
Third Quarter Highlights
For Q3 2026, compared to Q3 20251:
Net revenue increased 42.8% to $1.04 billion, with comparable sales2 growth of 34.3%
United States net revenue increased 53.8% to $621.1 million, comprising 59.7% of net revenue
Retail net revenue increased 35.1% to $657.3 million
eCommerce net revenue increased 58.2% to $383.0 million, comprising 36.8% of net revenue
Gross profit margin2 increased 30 bps to 46.0%
Selling, general and administrative expenses as a percentage of net revenue decreased 170 bps to 27.9%
Adjusted EBITDA2 increased 52.2% to $207.6 million. Adjusted EBITDA as a percentage of net revenue2 increased 120 bps to 20.0%
Net income increased 87.5% to $138.9 million. Net income as a percentage of net revenue increased 320 bps to 13.4%. Net income per diluted share increased 84.1% to $1.16 per share, compared to $0.63 per share in Q3 2025
Adjusted Net Income2 increased 58.1% to $131.2 million. Adjusted Net Income per Diluted Share2 increased 54.9% to $1.10 per share, compared to $0.71 per share in Q3 2025
Third Quarter Results Compared to Q3 2025
(unaudited, in thousands of Canadian dollars, unless otherwise noted)
Q3 2026
Q3 2025
Change
% of net revenue
% of net revenue
%
bps
Retail net revenue
$ 657,296
63.2 %
$ 486,559
66.8 %
35.1 %
eCommerce net revenue
382,967
36.8 %
242,142
33.2 %
58.2 %
Net revenue
$ 1,040,263
100.0 %
$ 728,701
100.0 %
42.8 %
Gross profit
$ 478,909
46.0 %
$ 333,485
45.8 %
43.6 %
30
Selling, general and administrative ("SG&A")
$ 290,380
27.9 %
$ 215,649
29.6 %
34.7 %
(170)
Net income
$ 138,886
13.4 %
$ 74,068
10.2 %
87.5 %
320
Net income per diluted share
$ 1.16
$ 0.63
84.1 %
Adjusted EBITDA2
$ 207,625
20.0 %
$ 136,428
18.7 %
52.2 %
120
Adjusted Net Income2
$ 131,199
12.6 %
$ 83,000
11.4 %
58.1 %
120
Adjusted Net Income per Diluted Share2
$ 1.10
$ 0.71
54.9 %
Net revenue increased 42.8% to $1.04 billion, compared to $728.7 million in Q3 2025, or increased 41.6% on a constant currency2 basis, driven by strong comparable sales growth and the Company's new and repositioned boutiques. Comparable sales2 increased 34.3%, as all channels and all geographies generated positive double-digit growth. This was driven by exceptional demand for the Company's Fall/Winter assortment, supported by the Company's digital initiatives and its strategic marketing investments.
In the United States, net revenue increased 53.8% to $621.1 million, compared to $403.7 million in Q3 2025. This was fueled by the Company's real estate expansion strategy, accelerated growth in eCommerce and strong comparable sales growth in existing boutiques.
Net revenue in Canada increased 29.0% to $419.2 million, compared to $325.0 million in Q3 2025, driven by accelerated growth in eCommerce and strong comparable sales growth in existing boutiques.
Retail net revenue increased 35.1% to $657.3 million, compared to $486.6 million in Q3 2025. The increase was driven by the strong performance of the Company's new and repositioned boutiques, as well as strong comparable sales growth in both countries. In the last 12 months, the Company opened 13 new boutiques and repositioned four boutiques. Boutique count3 at the end of Q3 2026 totaled 139 compared to 127 boutiques at the end of Q3 2025.
eCommerce net revenue increased 58.2% to $383.0 million, compared to $242.1 million in Q3 2025. The accelerated growth in eCommerce was fueled by strong traffic growth due to exceptional demand for the Company's Fall/Winter assortment, as well as the successful launch of the Company's mobile app and its investments in digital marketing.
Gross profit increased 43.6% to $478.9 million, compared to $333.5 million in Q3 2025. Gross profit margin2 was 46.0%, compared to 45.8% in Q3 2025. The 30 bps increase in gross profit margin was primarily driven by leverage on fixed costs, including store occupancy costs, as well as improved markdowns and freight tailwinds, offset by the impact of additional tariffs and the elimination of the de minimis exemption.
SG&A expenses increased 34.7% to $290.4 million, compared to $215.6 million in Q3 2025. SG&A expenses were 27.9% of net revenue, compared to 29.6% in Q3 2025. The 170 bps improvement was primarily driven by expense leverage and savings from the Company's smart spending initiative.
Other income was $34.5 million, an increase of 247.6% compared to $9.9 million in Q3 2025, primarily due to higher unrealized gains on derivatives.
Net income was $138.9 million, or 13.4% of net revenue, an increase of 87.5% compared to $74.1 million, or 10.2% of net revenue, in Q3 2025, primarily attributable to the factors described above. Net income per diluted share was $1.16 per share, an increase of 84.1% compared to $0.63 per share in Q3 2025.
Adjusted EBITDA2 was $207.6 million or 20.0% of net revenue2, an increase of 52.2% compared to $136.4 million or 18.7% of net revenue in Q3 2025. Excluding $4.4 million of foreign exchange translation gains ($10.4 million in Q3 2025) on an intercompany loan, Adjusted EBITDA2 increased 61.3% to $203.3 million or 19.5% of net revenue, compared to $126.0 million or 17.3% of net revenue in Q3 2025.
Adjusted Net Income2 was $131.2 million, an increase of 58.1% compared to $83.0 million in Q3 2025. Adjusted Net Income per Diluted Share2 was $1.10 per share, an increase of 54.9% compared to $0.71 per share in Q3 2025.
Cash and cash equivalents totaled $620.5 million, compared to $207.0 million at the end of Q3 2025.
Inventory was $508.2 million, an increase of 10.0%, compared to $462.0 million at the end of Q3 2025.
Capital cash expenditures (net of proceeds from lease incentives)2 were $55.6 million, compared to $81.9 million in Q3 2025. Capital cash expenditures in Q3 2026 primarily consist of capital investments in new and repositioned boutiques and the Company's new distribution centre being constructed in British Columbia.
YTD 2026 Compared to YTD 2025
(unaudited, in thousands of Canadian dollars, unless otherwise noted)
YTD 2026
YTD 2025
Change
% of net revenue
% of net revenue
%
bps
Retail net revenue
$ 1,709,319
67.9 %
$ 1,270,023
68.9 %
34.6 %
eCommerce net revenue
806,314
32.1 %
572,971
31.1 %
40.7 %
Net revenue
$ 2,515,633
100.0 %
$ 1,842,994
100.0 %
36.5 %
Gross profit
$ 1,147,336
45.6 %
$ 800,515
43.4 %
43.3 %
220
SG&A
$ 763,076
30.3 %
$ 591,441
32.1 %
29.0 %
(180)
Net income
$ 247,578
9.8 %
$ 108,148
5.9 %
128.9 %
400
Net income per diluted share
$ 2.08
$ 0.93
123.7 %
Adjusted EBITDA2
$ 425,679
16.9 %
$ 245,472
13.3 %
73.4 %
360
Adjusted Net Income2
$ 250,351
10.0 %
$ 132,524
7.2 %
88.9 %
280
Adjusted Net Income per Diluted Share2
$ 2.10
$ 1.14
84.2 %
Net revenue increased 36.5% to $2.52 billion, compared to $1.84 billion in YTD 2025, or increased 35.3% on a constant currency2 basis, driven by strong comparable sales growth and the Company's new and repositioned boutiques. Comparable sales2 grew 25.9%, fueled by elevated demand for the Company's product offering, as well as the Company's strong inventory position, digital initiatives and strategic marketing investments. Results continue to be driven by performance in the United States, where net revenue increased 47.0% to $1.52 billion, compared to $1.03 billion in YTD 2025. Net revenue in Canada increased 23.0% to $995.5 million, compared to $809.2 million in YTD 2025.
Retail net revenue increased 34.6% to $1.71 billion, compared to $1.27 billion in YTD 2025. The increase in net revenue was primarily driven by the strong performance of the Company's new and repositioned boutiques, as well as double-digit comparable sales growth in both countries.
eCommerce net revenue increased 40.7% to $806.3 million, compared to $573.0 million in YTD 2025. The increase was primarily driven by strong traffic growth due to elevated demand for the Company's product offering, the successful launch of its mobile app and its investments in digital marketing.
Gross profit increased 43.3% to $1.15 billion, compared to $800.5 million in YTD 2025. Gross profit margin2 was 45.6% compared to 43.4% in YTD 2025. The 220 bps increase in gross profit margin was primarily driven by leverage on store occupancy costs, IMU improvements, lower warehousing costs and savings from the Company's smart spending initiative, and improved markdowns, partially offset by the impact of additional tariffs and the elimination of the de minimis exemption.
SG&A expenses increased 29.0% to $763.1 million, compared to $591.4 million in YTD 2025. SG&A expenses were 30.3% of net revenue compared to 32.1% in YTD 2025. The 180 bps improvement was primarily driven by expense leverage and savings from the Company's smart spending initiative.
Other income was $39.2 million, an increase of 154.5% compared to $15.4 million in YTD 2025, primarily due to higher unrealized gains on derivatives .
Net income was $247.6 million, or 9.8% of net revenue, an increase of 128.9% compared to $108.1 million, or 5.9% of net revenue, in YTD 2025, primarily attributable to the factors described above. Net income per diluted share was $2.08 per share, an increase of 123.7%, compared to $0.93 per share in YTD 2025.
Adjusted EBITDA2 was $425.7 million, or 16.9% of net revenue, an increase of 73.4%, compared to $245.5 million, or 13.3% of net revenue in YTD 2025. Excluding $7.0 million of foreign exchange translation losses ($8.5 million gain in YTD 2025) on an intercompany loan, Adjusted EBITDA2 increased 82.6% to $432.7 million or 17.2% of net revenue, compared to $237.0 million or 12.9% of net revenue in YTD 2025.
Adjusted Net Income2 was $250.4 million, an increase of 88.9%, compared to $132.5 million in YTD 2025. Adjusted Net Income per Diluted Share2 was $2.10 per share, an increase of 84.2%, compared to $1.14 per share in YTD 2025.
Capital cash expenditures (net of proceeds from lease incentives)2 were $167.5 million, compared to $187.2 million in YTD 2025. Capital cash expenditures in YTD 2026 primarily consist of capital investments in new and repositioned boutiques and the Company's new distribution centre being constructed in British Columbia.
Outlook
Aritzia expects the following for the fourth quarter of Fiscal 2026:
Based on quarter-to-date trends, Aritzia expects net revenue in the range of $1.100 billion to $1.125 billion, representing growth of approximately 23% to 26%. The Company expects gross profit margin to be approximately flat to up 50 bps and SG&A as a percentage of net revenue to be approximately flat to down 50 bps for the fourth quarter of Fiscal 2026 compared to the fourth quarter of Fiscal 2025.
Aritzia expects the following for Fiscal 2026:
Net revenue in the range of $3.615 billion to $3.640 billion4, representing growth of approximately 33% from Fiscal 2025. This includes the contribution from retail expansion with 13 new boutiques and four boutique repositions. Twelve new boutiques and two repositions are expected to be in the United States with the remainder in Canada.
Adjusted EBITDA as a percentage of net revenue2 to be approximately 16.5% to 17.0%5 compared to 14.8% in Fiscal 2025, driven by leverage on store occupancy costs, IMU improvements, lower warehousing costs and savings from the Company's smart spending initiative and expense leverage, offset by approximately 280 bps of pressure from additional tariffs and the elimination of the de minimis exemption. Excluding this pressure, Aritzia would expect Adjusted EBITDA as a percentage of net revenue2 to be approximately 19.3% ...
