EarningsQ2 2027 Earnings Report
DE:280 Q2 2027 EPS Results
Actual EPS€0.82
Consensus EPS€0.66
Beat/MissBeat by +€0.16
One Year Ago EPS€0.37
DE:280 Q2 2027 Revenue Results
Actual Revenue€732.06M
Expected Revenue€702.24M
Beat/MissBeat by +€29.82M
YoY Revenue Growth+44.06%
Earnings Announcement Details
QuarterQ2 2027
Date10/08/2026
TimeAfter Close
Conference CallThursday, October 8, 2026
DE:280 Upcoming Earnings
Aritzia's next earnings date is estimated for January 13, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
DE:280 Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, characterized by exceptional revenue and comparable sales growth, record second-quarter profitability, broad-based demand, strong digital and boutique performance, raised full-year revenue and margin guidance, a healthy balance sheet and continued investment in growth. The main challenges were explicitly identified as difficult year-over-year comparisons, temporarily higher Q3 SG&A from infrastructure investments, back-half gross-margin moderation factors and tariff-related pressure.Company Guidance
Exceptional Second-Quarter Revenue and Comparable Sales Growth
Net revenue increased 44% to $1.17 billion, while comparable sales grew 35%. Results reflected broad-based strength across channels, geographies and product categories.
Record Profitability and Earnings Expansion
Excluding the $97 million benefit from tariff refunds, adjusted EBITDA increased 100% to $246 million. Adjusted EBITDA margin expanded 590 basis points to a second-quarter record of 21%, and adjusted EPS more than doubled year over year. The company has delivered margin expansion for 10 consecutive quarters.
Strong Gross Profit and Expense Leverage
Excluding tariff refunds, adjusted gross profit increased 60% to $570 million, with gross profit margin expanding 490 basis points to 48.7%. SG&A was $345 million and leveraged 130 basis points to 29.5%, primarily due to expense leverage and savings from the smart spending initiative.
U.S. Business Accelerated
U.S. second-quarter net revenue increased 60% to $779 million. Growth was supported by digital, existing boutiques, new and repositioned boutiques, full-funnel marketing and the mobile app. U.S. retail delivered robust double-digit comparable sales growth, while U.S. square footage increased approximately 20%.
Canadian Market Continued to Perform Strongly
Canada net revenue increased 20% to $390 million, led by digital momentum, meaningful client acquisition and greater purchase frequency. Canadian retail also delivered double-digit comparable sales growth.
Retail Channel Delivered Sustained Growth
Retail net revenue increased 34%, marking six consecutive quarters with top-line growth exceeding 30%. Comparable store sales remained exceptional and were primarily driven by strong traffic gains. The company opened 14 new and 5 repositioned boutiques over the trailing 12 months, with square footage growth in the mid-teens.
New Boutique Productivity and Expansion
New and repositioned boutiques continued to perform exceptionally well. Boutiques opened in fiscal 2026 are generating higher sales per square foot than prior cohorts and are tracking toward faster payback periods. The company expanded into Birmingham, New Orleans and St. Louis and stated that new store productivity and paybacks remain exceptional.
Digital Revenue Surged
Digital net revenue increased 68% to $403 million, and digital's share of net revenue increased nearly 500 basis points year over year to 34%. Growth was driven by strong product demand, the mobile app, inventory availability and strategic marketing investments.
Mobile App Exceeded Initial Expectations
The mobile app reached more than 2.5 million downloads in approximately one year and reached the high end of the range for best-in-class peers. It contributed to higher conversion, higher average monthly sessions and repeat purchase behavior, with downloads continuing to be strong year over year.
International Digital Growth
Improvements to the international digital experience continued to pay off, with international digital sales increasing 165% year over year.
Strong Product Demand and Inventory Position
Demand was strong across regions and categories, including T-shirts, blouses, Sweatfleece, shorts and pants. The company said its inventory was well positioned, enabling it to have the right product in the right place at the right time, support demand and achieve a meaningful year-over-year improvement in the markdown rate.
Broad-Based Client Acquisition and Loyalty
Client growth was in the double digits across all channels and geographies. Marketing initiatives expanded brand awareness, generated a strong wave of new client acquisition and increased loyalty and share of closet among existing clients. Management said newly acquired customers were returning rather than being one-time purchasers.
Traffic-Led Comparable Sales Growth
Management stated that second-quarter comparable sales growth was primarily driven by traffic rather than ticket growth, consistent with prior quarters. The company also reported its eighth consecutive quarter of double-digit comparable sales growth.
Positive Third-Quarter Momentum and Guidance
Management said momentum continued into the third quarter, supported by strong client response to fall product and well-positioned inventory. Q3 net revenue is expected to be $1.275 billion to $1.325 billion, representing growth of 23% to 27%, with comparable sales growth in the high teens.
Full-Year Revenue Outlook Raised
The company raised full-year net revenue guidance to $4.78 billion to $4.88 billion, representing growth of 29% to 32% from fiscal 2026. The outlook reflects comparable sales growth in the low 20s and contributions from 12 to 13 new boutiques and 4 to 5 repositions.
Improved Full-Year Margin Outlook
Full-year adjusted gross profit margin guidance was raised to an increase of 225 to 275 basis points. Adjusted EBITDA margin is now expected to be approximately 20%, which management said is 100 basis points above its long-range fiscal 2027 target.
Strong Balance Sheet and Shareholder Returns
The company ended the quarter with $528 million in cash, no debt and zero drawn on its $300 million revolving credit facility. Inventory was $715 million, up 36% year over year. During the quarter, Aritzia repurchased approximately 900,000 shares for $125 million; year to date through October 2, it repurchased 2.1 million shares for $270 million at an average price of $127.
Continued Strategic Investment in Growth Capabilities
Aritzia is continuing to invest in digital, real estate, marketing, AI enablement, website and mobile app enhancements, omnichannel infrastructure, talent, technology, merchandising planning software, customer initiatives, RFID and its U.S. distribution center network. Management said these investments are intended to support scalable, profitable long-term growth.
IMU Improvement Opportunities Remain
Management said it continues to see opportunities to improve initial markup through cost savings from greater scale, country-mix optimization and seasonal pricing reviews. IMU improvement is expected to continue in the back half of the year.
DE:280 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed