Aritzia Inc. said strength in its U.S. business and moves to avoid higher shipping fees boosted its latest quarterly results.
“We’ve seen outstanding new customer growth in the United States, where our base of loyal clients expands quarter after quarter. We’re also super pleased with our second-quarter results in Canada,” Aritzia CEO Jennifer Wong told analysts on a call Thursday.
The Vancouver-based clothing retailer reported $66.3 million in net income during its second quarter, up from $18.2 million during the same period last year.
Its net revenue rose by almost a third to $812.1 million, from $615.7 million during the same period a year earlier. The company said its U.S. net revenue rose more than 40 per cent to $486.1 million, accounting for just under 60 per cent of its total revenue.
Wong also noted the company launched a new international e-commerce platform in August, which she said was fuelling higher revenue growth.
“Its performance in the first six weeks has meaningfully exceeded our expectations, and we’re confident we’ll hit our target to triple sales within two years or less,” she said.
In August, the U.S. ended what’s known as the de minimis exemption, which had allowed packages worth $800 or less to ship south of the border without duties.
“Previously, under the de minimis exemption, we utilized our existing supply chain network in Canada to fulfil a portion of U.S. e-commerce orders. However, the removal of the de-minimis exemption in August required an operational pivot,” Wong said.
She said the company relocated all U.S. order fulfilment to its Ohio distribution centre, which was expanded last year to more than double its previous size. Wong said the company hired additional staff at the facility.
“Despite headwinds from the elimination of the de minimis and higher reciprocal tariff rates on Vietnam and Cambodia, our proactive mitigation strategies and strong revenue growth have positioned us very well,” she said.
“As a result, our margin outlook for fiscal 2026 is unchanged at 15.5 to 16.5 per cent. We’re leveraging our agile global supply chain to minimize tariff exposure where possible.”
Todd Ingledew, Aritzia’s chief financial officer, said that due to the retailer’s year-to-date performance and improved expectations for the second half of the year, it is raising its net revenue forecast for the full fiscal year to between $3.3 billion and $3.5 billion. In its first-quarter report in January, Aritizia had predicted net revenue of $3.1 billion to $3.25 billion.
For the second quarter, Aritzia’s net income per diluted share came in at 56 cents compared to 16 cents per diluted share a year earlier.
On an adjusted basis, Aritzia’s net income amounted to $69.8 million, rising from $24.5 million during the second quarter of last year.
This report by The Canadian Press was first published Oct. 9, 2025.
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