Aritzia Inc. reported record results for its fourth quarter , and hit its fiscal 2027 revenue target one year early, chief executive Jennifer Wong said on its conference call Thursday.
Wong said the company continues to “captivate” shoppers with its expansion strategy as new stores draw lineups and recoup costs faster than expected.
The Vancouver-based fashion chain’s net revenue grew nearly 33 per cent to just shy of $1.2 billion for the three months ending March 1, beating both analysts’ forecasts and Aritzia’s own guidance for the quarter. Net income grew 35 per cent to $134 million.
Adjusted net income, which excludes the impact of one-time items, increased 41 per cent to $138 million. Adjusted earnings per share were $1.15, up from $0.83 a year earlier and above analysts’ forecasts of $1.03 per share.
“Strong double-digit growth across new, existing, and reactivated clients has been a key contributor to the outstanding momentum in our business,” Wong said on the call.
Aritzia now has 76 boutiques in the United States , where net revenue increased 38 per cent to $755 million. The U.S. accounts for 64 per cent of Aritzia’s net revenue, and the retailer plans to open in four new markets this year: Birmingham, Fort Worth, New Orleans and St. Louis.
Chief financial officer Todd Ingledew said the company is currently paying a “global surcharge” of 10 per cent on imports from key sourcing markets, referring to new U.S. tariffs imposed by President Donald Trump in February.
The U.S. Court of International Trade deemed those duties unlawful on Thursday, but the ruling only applies to three plaintiffs (two businesses and the state of Washington).
Aritzia announced last year that it shifted fulfilment of all American orders to its Ohio distribution centre before the de minimis exemption — the loophole that allowed low-value orders to ship to the U.S. duty-free — ended on Aug. 29.
Wong said the company expects to begin work on a second distribution centre in the U.S. later this year or early next.
Aritzia’s brand awareness is “growing rapidly in the United States at a time when other brands such as Abercrombie, Lululemon, and Banana Republic are struggling,” Stifel Nicolaus Canada Inc. analyst Martin Landry said in a note.
“Aritzia seems to have found a niche, offering high quality products at price points above mainstream brands,” he said. “This is conferring a cachet to the brand, which resonates with customers.”
Double-digit comparable sales growth in existing stores and strong sales at new and expanded boutiques helped overall retail net revenue grow to $698 million, up 35 per cent from last year.
Wong said the new U.S. stores that opened in fiscal 2026 are tracking to pay back in less than a year, beating Aritzia’s target of 12 to 18 months.
“Our boutiques enhance brand recognition, drive new client acquisition, and support digital growth, particularly in new markets,” she said.
While its U.S. business continues to lead Aritzia’s growth, sales in the mature Canadian market are holding up. Net revenue in the country increased 24 per cent to $431 million, driven by strong comparable sales both in stores and online.
Wong said Aritzia’s mobile app, which launched at the end of October, continues to see strong and consistent week-over-week downloads and drives 20 per cent to 40 per cent of e-commerce sales . Overall, digital net revenue increased 29 per cent to $488 million.
Aritzia repurchased approximately 897,000 shares during the quarter and a total of around 1.4 million shares in fiscal 2026.
The company had $592 million in cash at the end of the quarter, zero debt and no money drawn on its $300-million revolving credit facility.
Ingledew said Aritzia’s excess cash will go toward capital expenditures, including $210 million related to investments in new and repositioned stores over the next two years, and for “opportunistically” repurchasing shares in fiscal 2027.
When asked about international expansion, Wong said Aritzia is focused on U.S. growth for now but is gathering information about international customers from its e-commerce site. She said people from around the world also visit Aritzia’s U.S. stores.
“I think that bodes very well for our future internationally,” said Wong. “We’ll share more on our long-range plan coming this fall. You’ll hear more then.”
• Email: jswitzer@postmedia.com