Aritzia Inc.

isn’t letting tariffs slow down its ambitious United States expansion strategy.

The Vancouver-based women’s apparel retailer reported Thursday that new store openings, optimized inventory position and strategic marketing investments had helped net revenue grow 33 per cent year-over-year to $663 million in the first quarter of its 2026 fiscal year, which ended June 1.

“Clients responded well to our product assortment, and our marketing helped keep Aritzia top of mind when they were ready to shop,” Aritzia chief executive Jennifer Wong said on a call with analysts.

Wong said Aritzia is working to mitigate the

impact of tariffs

imposed by U.S. President

Donald Trump

by continuing to diversify its global supply chain, discussing cost sharing with longstanding supplier partners and continuing to focus on its multi-year initiative to improve initial markup, in addition to general cost-cutting measures.

“And, as a reminder, nearly 40 per cent of our business is not impacted by the tariffs because it is generated outside the United States,” she said.

The retailer reported that its American business continued to drive results. U.S. net revenue grew 45 per cent year-over-year to $413 million, comprising 62 per cent of its overall net revenue.

Aritzia’s base of active clients in the U.S. increased by about 40 per cent compared to the first quarter of last year, and Wong said the company still has a “long runway for growth.”

Real estate expansion and strong comparable sales growth helped drive a 34 per cent year-over-year increase in retail net revenue to $480 million in the first quarter. Over the last 12 months, Wong said the company opened 13 new boutiques and repositioned three others, increasing its retail square footage by an “unprecedented” 25 per cent.

“Our boutique openings have a consistent track record as our most predictable driver of top-line growth,” she said. “They help drive awareness and client acquisition in both new and existing markets.”

E-commerce

net revenue increased 30 per cent to $183 million, driven by strong traffic growth that was fuelled by demand for Aritzia’s spring-summer products, optimized inventory position and the “halo effect” from new store openings and digital marketing.

After a “muted environment” in Canada last year, Wong said the company was “extremely pleased” with first-quarter results as Canadian net revenue grew 17 per cent year-over-year to $250 million.

The company reported a strong liquidity position at the end of the first quarter, with $292.6 million in cash, no debt and no money drawn from its $300 million revolving credit facility.

Looking ahead, Aritzia forecasted net revenue for the second quarter of fiscal 2026 to be in the range of $730 million to $750 million, representing growth of 19 per cent to 22 per cent.

Noting that the tariff situation is “extremely fluid,” chief financial officer Todd Ingledew said the company’s outlook for fiscal 2026 “accommodates for a range of scenarios due to all the uncertainties related to the broad macro environment, including changes in the tariffs and the potential for a consumer slowdown.”

But even with the impact of tariffs, the company said it is on track to reach its fiscal 2027 adjusted EBITDA margin target of approximately 19 per cent.

Ingledew said the retailer expects 35 per cent of its fall-winter inventory to arrive in North America by the beginning of August, when the Trump administration plans to impose higher tariffs on several countries.

“Our mitigation efforts are well underway,” said Ingledew. “We will remain agile and, as the situation evolves, we will continue to balance investing in our future growth with delivering ongoing margin improvements.”

Wong said the company is on track to launch its international e-commerce site next month and a mobile app in the back half of the fiscal year.

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Aritzia plans to open a minimum of 12 new and five repositioned stores during this fiscal year, including locations in five new markets across the U.S.

“Macro uncertainty, including U.S. tariffs and broader consumer concerns, continues to pose unique challenges for virtually every company across all industries,” said Wong. “However, we remain confident, given our strong fundamentals. We have an agile global supply chain. Our balance sheet is healthy. Our client base is extremely loyal, the strength of the Aritzia brand has never been greater.”

• Email: jswitzer@postmedia.com

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