Photo: Phillip Pessar / Wikimedia Commons, CC BY 2.0, cropped
Aritzia's Sales Jumped 44% and the Stock Soared About 20%. How a Canadian Clothing Brand Conquered America
- Net revenue rose 44.1% to $1.17 billion in the quarter ended August 30, 2026 (Aritzia's fiscal Q2 2027). Comparable sales rose 34.5%.
- US revenue jumped 60.3% to $779.4 million, now two-thirds of total sales. Canada grew 19.8%.
- Online (digital) sales rose 67.7% to $402.9 million.
- Diluted EPS was $1.70, up from $0.56. Adjusted EPS was $1.31, up from $0.59.
- Full-year guidance: $4.78–$4.88 billion of revenue, up about 29%–32%. The stock jumped about 20% after the report. Investor Day is October 27.
What happened
Aritzia, the Vancouver-based clothing retailer behind brands like Babaton, Wilfred and TNA, reported results for its fiscal second quarter on Thursday, October 8. The quarter ended August 30, 2026.
The stock (TSX: ATZ) jumped about 20% the next day. Toronto markets were closed for Thanksgiving on Monday, October 12.
The numbers
| Measure | Q2 fiscal 2027 | A year earlier | Change |
|---|---|---|---|
| Net revenue | $1.17 billion | $812.1 million | +44.1% |
| US revenue | $779.4 million | $486.1 million | +60.3% |
| Canada revenue | $390.4 million | $326.0 million | +19.8% |
| Online revenue | $402.9 million | $240.3 million | +67.7% |
| Diluted EPS | $1.70 | $0.56 | +204% |
| Adjusted EPS | $1.31 | $0.59 | +122% |
| Adjusted EBITDA margin | 21.0% | 15.1% | +5.9 points |
Figures in Canadian dollars. Source: Aritzia via Retail Insider, October 8, 2026.
Comparable sales, which only count stores open more than a year plus online, rose 34.5%. That means growth isn't just from opening new stores. Existing ones are selling a lot more.
The American story
Aritzia started as a single store in Vancouver in 1984. Today two-thirds of its sales come from the US.
Its playbook:
- Big, beautiful flagship stores in top US malls and shopping streets. It had 146 boutiques at the end of the quarter, up from 134.
- Online sales that grow where stores open. When a new store opens, online sales in that city tend to jump.
- "Everyday luxury" pricing. Nicer than fast fashion, cheaper than designer labels.
This year, 11 to 12 of its 12 to 13 new stores are planned for the US.
A note on the margins
Reported gross margin was 57.1%, but that includes tariff refunds. Excluding them, the adjusted gross margin was 48.7%, still up 4.9 points from a year earlier. When you read results, always check what's one-time and what's repeatable. Our guide to reading an earnings report explains how.
Contrast: luxury is struggling
The same week, LVMH said its fashion and leather sales fell 5%, hurt by weak Chinese shoppers. North American shoppers are still spending on mid-priced brands they love. That split shows up across retail stocks this year.
What it means for investors
Fast growth comes with high expectations. After a 20% jump, the stock already prices in a lot of future success. Any slowdown can hit it hard.
Fashion is fickle. Brands can go from hot to forgotten in a few seasons. Aritzia has managed that risk well, but it never goes away.
Check before you buy. Our 7-step stock-picking checklist covers growth, profitability, debt and valuation, the four things that matter most for a retailer.
What to watch next
- October 27: Investor Day, where Aritzia will lay out its next growth plans.
- Holiday sales, the most important season for any retailer.
- US tariffs on imported clothing, and whether refunds continue.
Frequently asked questions
How much did Aritzia's revenue grow?
Aritzia's net revenue rose 44.1% to $1.17 billion in its fiscal second quarter of 2027, which ended August 30, 2026. Comparable sales grew 34.5%. US revenue rose 60.3% to $779.4 million and Canadian revenue rose 19.8% to $390.4 million.
Why did Aritzia stock go up?
Aritzia's shares jumped about 20% after the October 8, 2026 report because sales growth, profit and margins all came in far stronger than expected and the company raised its full-year revenue outlook to $4.78 billion to $4.88 billion.
How much of Aritzia's business is in the United States?
About two-thirds. US net revenue was 66.6% of total sales in the quarter. The company plans 11 to 12 of its 12 to 13 new boutiques this year in the US.
What is Aritzia's guidance for fiscal 2027?
Aritzia expects fiscal 2027 net revenue of $4.78 billion to $4.88 billion, growth of roughly 29% to 32%, with 12 to 13 new boutiques and four to five repositioned ones. It will lay out longer-term plans at an Investor Day on October 27, 2026.
Is Aritzia a good stock to buy?
Aritzia is growing very fast, but fashion retailers depend on trends, and the stock already prices in a lot of success after a big run. Check the valuation, the margin outlook and how much tariff refunds helped before buying. This is educational information, not advice.
Primary sources
- Aritzia — Reports second quarter fiscal 2027 financial results
- Retail Insider — Aritzia reports Q2 fiscal 2027 results, net revenue up 44.1% to $1.17 billion (Oct. 8, 2026)
- PR Newswire — Aritzia reports second quarter fiscal 2027 financial results
- The Motley Fool Canada — TSX Today: what to watch for in stocks on Tuesday, October 13
Data & disclaimer: This article is for educational purposes only and is not financial or investment advice. Figures reflect data available as of Oct 14, 2026, and conditions change — always confirm current pricing, rates and rules with the provider before you act. Written by Elizabeta Dimoska. See our editorial standards and disclosure.
Comments