Aritzia just posted a quarter that would look strong in almost any consumer economy. For the three months ended Aug. 31, the Vancouver-based women's fashion retailer booked C$1.17 billion of net revenue — 44.1% above the C$812.05 million from the same quarter last year. The bottom line more than tripled to C$201.69 million, or C$1.70 a share, from C$66.30 million (C$0.56). Adjusted net income climbed 122.1% to C$156.04 million, while adjusted EBITDA nearly doubled to C$246.17 million from C$123.28 million.
The result was good enough that management lifted the full-year fiscal 2027 revenue outlook to C$4.78–4.88 billion — growth of roughly 29–32% versus fiscal 2026 — up from the prior C$4.55–4.75 billion range (23–28%). Adjusted EBITDA margin guidance moved up to about 20.0% from 19.5%, against 17.8% last year.
The engine is the United States. U.S. revenue surged 60% to C$779 million — roughly two-thirds of the entire business — while Canadian revenue grew about 20% to C$390 million. Digital sales jumped nearly 68% to just shy of C$403 million; retail revenue rose 34% to just under C$767 million. Adjusted EPS of C$1.31 also cleared the analysts' C$1.05 forecast by a wide margin.
One line in the quarter deserves a second look: about C$97.4 million arrived as tariff refunds under the U.S. IEEPA process — one-off money, not retail execution. The Financial Post notes the U.S. Supreme Court struck those tariffs down in February, which is what made the refunds possible.
Why it matters
A 44% revenue print at a fashion retailer is not what a squeezed consumer looks like, and this one lands alongside other signs that shoppers are still spending — even on big-ticket items, as Rivian's record third quarter showed on the auto side. But the more useful signal sits inside the number, not on top of it: digital up almost 68%, the U.S. up 60% to C$779 million, and a Canadian brand that now earns two of every three dollars south of the border. That 66% U.S. mix is exactly why the tariff line matters — Aritzia paid the duties, fought them, and got C$97.4 million back after the court ruling.
The margin math tells a subtler story than the headline. Adjusted EBITDA of C$246.17 million on C$1.17 billion of revenue is roughly a 21.0% margin, against about 15.2% a year ago (C$123.28 million on C$812.05 million) — a 5.8-percentage-point expansion that the refund clearly helped. Strip out the noise and the signal is the raised guide itself: management is underwriting 29–32% full-year growth and 23–27% for Q3 alone (C$1.275–1.325 billion), with adjusted gross margin at 47.0–47.5% versus 46% last year. The shares still closed down 1.13% at C$121.89 on the TSX — the market priced in most of this before the print. For the broader read, see our economy coverage.
| Metric | Q2 FY27 | Q2 FY26 | Change |
|---|---|---|---|
| Net revenue | C$1.17B | C$812.05M | +44.1% |
| Net income | C$201.69M | C$66.30M | +204.2% |
| Adjusted net income | C$156.04M | C$70.24M | +122.1% |
| Adjusted EBITDA | C$246.17M | C$123.28M | ~+100% |
| U.S. revenue | C$779M | — | +60% |
| Adjusted EPS | C$1.31 | C$0.59 | beat C$1.05 forecast |
What to watch
- The Q3 FY27 print against the C$1.275–1.325 billion guide — whether 23–27% growth holds without refund help.
- Adjusted gross margin guidance of 47.0–47.5% versus 46% last year, as the refund tailwind fades.
- U.S. expansion pace: 6 new U.S. boutiques in Q3, with 12–13 new boutiques plus 4–5 repositions planned for fiscal 2027, most of them in the U.S.
- On capital returns, the share repurchase green-lit in May 2026 still has room: up to 4.31 million shares — roughly a twentieth of the shares freely available — and the window stays open through May 12, 2027.
- Whether the market keeps selling the news — the 1.13% drop on a blowout print suggests expectations were already high.
MarketRadar take
The numbers argue that discretionary spending is holding up better than the gloom suggests — 60% U.S. growth and a 68% digital surge are hard to fake. But the trade is not the 44% headline: back out the C$97.4 million refund and the quarter is strong rather than spectacular, and the stock's down-close says the market already did that math. Watch the Q3 guide of C$1.275–1.325 billion as the clean read — if Aritzia lands it at a 47%+ gross margin without refund help, the consumer-resilience thesis gets another leg.
