Aritzia’s net revenue increased by 7.8 percent to 498.6 million dollars in the first quarter of 2025. Comparable sales growth was 2 percent, as all channels and all geographies performed positively.

Adjusted EBITDA was 53.9 million dollars or 10.8 percent of net revenue, an increase of 70.6 percent and adjusted net income was 25 million dollars, an increase of 122.7 percent with adjusted net income per diluted share of 22 cents, an increase of 120 percent.

"Throughout the quarter we continued to optimise the composition of our inventory, which drove a sequential acceleration in sales trends each month. We are confident that our real estate expansion strategy, digital initiatives, and growing brand awareness in the United States will enable us to deliver consistent, profitable growth for years to come," said Jennifer Wong, the company’s chief executive officer.

Highlights of Aritzia’s Q1 results

In the United States, net revenue increased by 13 percent to 284.7 million dollars primarily driven by the company's real estate expansion strategy and growing brand awareness. Net revenue in Canada increased by 1.5 percent to 214 million dollars.

Retail net revenue for the quarter increased by 9.2 percent to 357.8 million dollars driven by strong performance of new and repositioned boutiques, which continue to generate better-than-expected results, as well as positive comparable sales growth in its boutiques.

In the last 12 months, the company opened five new boutiques and repositioned four boutiques. Aritzia operated 119 stores at the end of the first quarter.

Ecommerce net revenue increased by 4.2 percent to 140.8 million dollars.

Gross profit increased by 22 percent to 219.5 million dollars, while gross profit margin was 44 percent, up approximately 510 bps. Net income was 15.8 million dollars, a decrease of 9.4 percent, while net income per diluted share was 14 cents per share, a decrease of 6.7 percent.

Aritzia maintains fiscal 2025 outlook

Based on quarter-to-date trends, Aritzia expects net revenue in the range of 570 million dollars to 590 million dollars in the second quarter, up approximately 7 to 10 percent. The Company expects gross profit margin to increase approximately 450 bps. Aritzia continues to expect net revenue in the range of 2.52 billion dollars to 2.62 billion dollars, representing growth of approximately 8 percent to 12 percent including the contribution from retail expansion with 11 to 13 new boutiques and three to four boutique repositions.

Other than one new boutique and one boutique reposition in Canada, all openings are expected to be in the United States. One new boutique and one boutique reposition have already opened year-to-date.

Gross profit margin is expected to increase by approximately 400 to 450 bps compared to fiscal 2024.

Adjusted EBITDA as a percentage of net revenue is forecasted to increase by approximately 400 to 500 bps.