Canadian everyday luxury apparel retailer Aritzia reported a 43% increase in fiscal first-quarter sales, driven by strong U.S. performance and a surge in direct-to-consumer revenue. For the quarter ended May 31, the company earned a profit of CAD $0.96 per share on CAD $951 million in sales, both beating expectations. U.S. sales, which account for more than two-thirds of net revenue, rose 54.5%, while Canadian sales grew 25%. Retail revenue increased 39%, and direct-to-consumer sales, making up a third of net revenue, jumped 55.5%, contributing to a gross profit margin of 50.3%, up 310 basis points year-over-year. Adjusted EBITDA rose 80.5% and adjusted net income nearly doubled, representing 12.3% of net revenue. Looking ahead to fiscal 2027, Aritzia expects sales between CAD $4.55 billion and CAD $4.75 billion, with a midpoint of CAD $4.65 billion, just shy of the $3.32 billion estimate.
Lululemon Athletica Inc.Aritzia's strong U.S. and DTC growth signals competitive pressure in the premium apparel space.
Aritzia reported 43% sales growth, beat earnings expectations, and raised fiscal 2027 guidance.