Aritzia delivered a record third quarter, with net revenue climbing to $1.04 billion, up 42.8% year over year for Q3 Fiscal 2026, as the Vancouver-founded retailer leans into U.S. expansion, digital innovation, and tight cost control to scale its Everyday Luxury positioning. Profits accelerated even faster, with net income surging 87.5% to $138.9 million and adjusted EBITDA jumping 52.2% to $207.6 million, underscoring the strength of the model in a choppy consumer backdrop.
Record Quarter Powered By U.S. Momentum
Chief executive Jennifer Wong said, “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.”
In Canada, net revenue increased 29.0% to $419.2 million, reflecting continued strength in core markets even as the retailer accelerates its United States growth story. Across the network, net revenue gains were supported by new and repositioned boutiques, with boutique count rising to 139 from 127 a year earlier.
Stores Plus eCommerce Delivers Balanced Growth
Brick-and-mortar remains a growth engine: retail net revenue climbed 35.1% to $657.3 million, fuelled by strong performance from new and repositioned boutiques and double-digit comparable sales in both Canada and the United States. At the same time, eCommerce net revenue surged 58.2% to $383.0 million, now accounting for 36.8% of total sales as shoppers increasingly engage online.
Management pointed to strong traffic, the launch of Aritzia’s mobile app, and stepped-up digital marketing as key drivers behind the online acceleration. This omnichannel strength is central to the brand’s long-term strategy, positioning Aritzia to capture demand whether clients browse in a boutique or buy via smartphone.
Margin Expansion And Profit Upside
On the profitability side, Aritzia expanded gross profit by 43.6% to $478.9 million, with gross margin edging up 30 basis points to 46.0%, helped by leverage on fixed costs, improved markdowns, and freight tailwinds. SG&A rose 34.7% to $290.4 million, but SG&A as a percentage of revenue improved 170 basis points to 27.9%, thanks in part to the company’s “smart spending” initiative.
Net income climbed to $138.9 million, or 13.4% of net revenue, compared with $74.1 million and 10.2% in the prior-year quarter, while net income per diluted share increased 84.1% to $1.16 from $0.63. Adjusted net income rose 58.1% to $131.2 million, with adjusted net income per diluted share up 54.9% to $1.10.
Cash, Capex, And Balance Sheet Strength
Free cash flow was robust, with net cash generated from operating activities reaching $357.1 million in the quarter, up from $214.9 million a year earlier. Cash and cash equivalents ended Q3 at $620.5 million, nearly triple the $207.0 million held at the end of Q3 2025, giving Aritzia meaningful flexibility to keep investing in growth.
Capital cash expenditures (net of proceeds from lease incentives) were $55.6 million, down from $81.9 million in the prior-year period, reflecting disciplined spending focused on new and repositioned boutiques and the new distribution centre in British Columbia. Inventory rose 10.0% to $508.2 million, supporting demand for the Fall/Winter assortment without a spike in markdown risk.
Year-To-Date Performance And 2026 Outlook
For the first 39 weeks of Fiscal 2026, net revenue increased 36.5% to $2.52 billion, with gross profit up 43.3% to $1.15 billion and gross margin rising 220 basis points to 45.6%. Year-to-date net income more than doubled, climbing 128.9% to $247.6 million, while adjusted EBITDA jumped 73.4% to $425.7 million.
Looking ahead, Aritzia expects Q4 Fiscal 2026 net revenue between $1.10 billion and $1.125 billion, implying growth of roughly 23% to 26%, with gross margin and SG&A as a percentage of revenue both anticipated to be flat to slightly better versus last year. For full-year Fiscal 2026, the company is guiding net revenue in the range of $3.615 billion to $3.640 billion, up about 33% from Fiscal 2025, and adjusted EBITDA margin of about 16.5% to 17.0%, despite an estimated 280 basis points headwind from tariffs and the removal of the de minimis exemption.
