Key Takeaways
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- Revenue up 32% to C$812.1M, beating estimates.
- U.S. sales surged 41%, with plans to nearly triple store count.
- Profit tripled to C$66.3M ($47.5M).
- Distribution capacity tripled to support growth.
- Digital sales up; mobile app launching soon.
- Strong Q3 and full-year revenue guidance.
What happened?
Aritzia delivered a strong second quarter driven by rapid expansion in the U.S. market, where revenue grew 41%. The company is aggressively increasing its store footprint from about 70 to a targeted 200 locations, supported by a significant investment in its U.S. distribution infrastructure. Earlier this year, Aritzia tripled the capacity of its U.S. distribution center, with plans to scale it up even further to meet growing demand. Alongside physical expansion, the company is enhancing its digital presence, with digital sales rising sharply and a mobile app planned for launch later this year to provide a new shopping channel.
Profitability improved markedly, with net income tripling compared to the prior year, helped by strong demand for summer collections and the launch of a fall marketing campaign. The company’s momentum is expected to continue into the third quarter, with revenue guidance projecting 20% to 24% growth, and full-year revenue forecasts exceeding analyst expectations.
Why it matters
The U.S. market is a critical growth engine for Aritzia, and its ability to scale stores and distribution efficiently is key to capturing market share in the competitive fast-fashion sector. The company’s strong financial performance and optimistic outlook reflect effective execution of its expansion strategy and growing brand appeal. The focus on omnichannel retailing, combining physical stores with digital innovation, positions Aritzia well to meet evolving consumer preferences.
What’s next?
Investors should monitor the pace of new store openings, the impact of the upcoming mobile app on digital sales, and inventory management as the company scales. Competitive dynamics in the U.S. fast-fashion market and broader consumer spending trends will also influence future performance. Continued marketing efforts and product innovation will be important to sustain growth momentum.
