Aritzia Inc., a leading Canadian fashion retailer, has reported impressive financial results for fiscal 2025, marking a significant milestone in its growth trajectory.
The company’s net revenue for the full fiscal year reached $2,738.1 million, representing a 17.4% increase compared to the previous year. This robust growth was driven by strong performances in both the fourth quarter and the entire fiscal year.
In the fourth quarter, Aritzia’s net revenue surged by 31.3% to $895.1 million, with comparable sales growth of 26%. The company’s U.S. operations were particularly strong, with net revenue increasing by 48.5% to $548.0 million, accounting for 61.2% of total net revenue.
This success reflects Aritzia’s strategic focus on expanding its U.S. presence, including the opening of a flagship store on Fifth Avenue in New York City.
Aritzia’s profitability also saw significant improvements. The gross profit margin expanded by 420 basis points to 42.5% in the fourth quarter, while adjusted EBITDA increased by 121.8% to $160.9 million, representing 18.0% of net revenue.
Net income for the quarter rose by 311.6% to $99.6 million, or $0.84 per diluted share, compared to $24.2 million in the same period last year.
For the full fiscal year, Aritzia’s gross profit margin improved by 460 basis points to 43.1%, and net income increased by 163.8% to $207.8 million.
The company’s eCommerce business was a significant growth driver, with net revenue reaching $951 million, representing a 33% compound annual growth rate (CAGR) since fiscal 2020.
Aritzia’s strong performance is attributed to its strategic initiatives, including geographic expansion, digital growth, and increased brand awareness. The company’s “Everyday Luxury” brand positioning has resonated well with consumers, particularly in the U.S. market.
Despite operating in a dynamic economic environment, Aritzia’s management expressed confidence in its ability to navigate challenges and continue executing its growth strategy.
As Aritzia looks ahead to fiscal 2026, it is poised to build on its momentum, driven by a positive client response to its Spring/Summer product offerings and an optimized inventory position. The company’s focus on strategic marketing investments and real estate expansion will remain key drivers of future growth.