Canadian company Aritzia's net revenue rises 15.3% in Q2 2025

The company’s gross profit increased by 32.5 per cent to $247.5 million, compared to $186.8 million in Q2 2024. The gross profit margin was 40.2 per cent, compared to 35.0 per cent in Q2 2024. The retail net revenue grew by 17.6 per cent to $425.6 million, while e-commerce net revenue rose by 10.4 per cent to $190.0 million, accounting for 30.9 per cent of total net revenue, Aritzia said in a press release.

In the United States, Aritzia’s net revenue increased by 23.9 per cent to $345.4 million in Q2 FY25, compared to $278.9 million in Q2 FY24. Net revenue in Canada increased by 5.8 per cent to $270.3 million, compared to $255.3 million in Q2 FY24.

"Our performance during the second quarter of fiscal 2025 exceeded our expectations, as we delivered a 15 per cent increase in net revenue compared to the second quarter of fiscal 2024 and generated comparable sales growth of 6.5 per cent. Our top line was fuelled by a 24 per cent net revenue increase in the United States, which was driven by our proven real estate expansion strategy, a meaningful acceleration in e-commerce growth and strong comparable sales growth in our boutiques," said Jennifer Wong, chief executive officer (CEO).

The company’s net income (loss) was $18.2 million, an increase of 404.6 per cent compared to $6.0 million in Q2 2024. Net income (loss) per diluted share was $0.16 per share, an increase of 420.0 per cent compared to $0.05 per share in Q2 2024.

Aritzia’s retail net revenue increased by 17.6 per cent to $425.6 million, compared to $362.0 million in Q2 2024 due to the opening of 7 new boutiques and repositioning of 3. Boutique count at the end of Q2 2025 totalled 122 compared to 116 boutiques at the end of Q2 2024.

The company’s e-commerce net revenue increased by 10.4 per cent to $190.0 million, compared to $172.2 million in Q2 2024. The increase was primarily driven by traffic growth in the United States, strong response to the company's fall product and its investment in digital marketing.

As for year to date (YTD) FY25, the net income of the company was $34.1 million, witnessing an increase of 196.9 per cent compared to $11.5 million in year to date (YTD) FY24. The net revenue increased by 11.8 per cent to $1.1 billion, compared to $996.9 million in YTD 2024.

Retail net revenue increased by 13.6 per cent to $783.5 million in YTD FY25, compared to $689.6 million in YTD 2024. Meanwhile e-commerce net revenue increased by 7.7 per cent to $330.8 million, compared to $307.3 million in YTD 2024. The company’s gross profit increased by 27.3 per cent to $467.0 million, compared to $366.8 million in YTD 2024. Gross profit margin was 41.9 per cent compared to 36.8 per cent in YTD 2024, the release added.

For Q3 FY25, based on quarter-to-date trends, Aritzia expects net revenue in the range of $675 million to $700 million. This represents growth of approximately 3 per cent to 7 per cent or growth of approximately 7 per cent to 11 per cent. The company expects gross profit margin to increase approximately 400 basis points (bps).

For full fiscal 2025, Aritzia anticipates net revenue to reach in the range of $2.54 billion to $2.60 billion, representing growth of approximately 9 per cent to 11 per cent from fiscal 2024 (excluding the 53rd week in fiscal 2024, this represents growth of approximately 10 per cent to 13 per cent). The company is expecting the gross profit margin to increase by approximately 450 bps compared to fiscal 2024. The capital cash expenditures (net of proceeds from lease incentives) are approximated at $230 million. This includes approximately $190 million related to investments in new and repositioned boutiques expected to open in fiscal 2025 and fiscal 2026, as well as $40 million primarily related to the company's distribution centre network and technology investments.

Fibre2Fashion News Desk (SG)