Trendy fashion retailer Aritzia Inc. ATZ-T -0.55%decrease reported a nearly 90-per-cent jump in its third-quarter profit and hiked its full-year sales forecasts as the company’s continuing U.S. expansion and growing digital presence stoked demand among shoppers.
The Vancouver-based clothing brand on Thursday reported net income of $138.9-million or $1.16 per diluted share in the third quarter ended Nov. 30, 2025, compared to $74.1-million or 63 cents per share in the same quarter the year prior.
Aritzia’s hot streak continued through the all-important holiday shopping season. The company saw record-breaking sales during the period, which will apply to its fourth-quarter results, chief executive officer Jennifer Wong said on Thursday.
“I think our product looks absolutely fantastic, and what’s even more, we’ve been in an excellent inventory position to meet the demand,” Ms. Wong told analysts during a conference call to discuss the results.
Aritzia reported net revenue of $1.04-billion – its first quarterly sales report above $1-billion in the company’s history. That represented a 43-per-cent jump compared to the same quarter last year, led by the U.S. market, where Aritzia has been opening new locations.
The results significantly outpaced analysts’ expectations, which had forecast third-quarter revenue of $934.8-million and net income of $102-million, according to the consensus estimate from S&P Capital IQ.
Comparable sales – an important metric that tracks sales growth at stores open for more than one year, to exclude sales increases resulting from new store openings – grew by 34 per cent.
New store openings and increased investments in advertising contributed significantly to sales growth, as did a new mobile app. Ms. Wong called the app’s early performance “wildly successful,” noting that it has reached 1.4 million downloads since its launch in late October.
While the majority of the app downloads came from existing Aritzia customers, it also drew in a good portion of new shoppers to the brand, as well as some who had not shopped at the store in some time, Ms. Wong added.
On Thursday, the company boosted its sales forecasts for its results for the fiscal year. Aritzia now expects its full-year net revenue to grow by approximately 33 per cent compared to the prior year to around $3.6-billion. The company had previously forecasted that figure to land somewhere between $3.3- to $3.5-billion, or 21- to 22-per-cent growth.
The company is now on track to reach revenue targets it had initially set for its next fiscal year one year early, chief financial officer Todd Ingledew said on Thursday.
During the call, Ms. Wong also indicated that the company’s international e-commerce website, which went live in August, is drawing significant interest from countries such as Britain, Australia and China, and parts of Central Europe, such as Switzerland and Germany.
“We’re gaining lots of good information for future expansion of the Aritzia brand.”
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