Aritzia Reports Q1 2027 Results: Full Earnings Call Transcript

On Thursday, Aritzia (TSX: ATZ ) discussed first-quarter financial results during its earnings call. The full transcript is provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

View the webcast at Summary Aritzia Inc. S. market. The company achieved a record Q1 adjusted EBITDA margin of 20%, and a 96% increase in adjusted EPS, highlighting strong execution across geographic expansion, digital growth, and brand awareness.

S. with new locations in Birmingham, New Orleans, and St. Louis. The digital channel saw a 56% increase in net revenue, supported by the launch of a new mobile app and strategic marketing investments.

75 billion, reflecting a 23-28% growth from fiscal 2026. 3%, attributed to IMU improvements and lower markdowns, despite tariff pressures. SG&A expenses were leveraged to 32% of net revenue, with a focus on strategic investments in infrastructure and digital initiatives to support growth. The company maintains a strong liquidity position with $472 million in cash and no debt, and plans to continue share repurchases throughout fiscal 2027.

Full Transcript OPERATOR Thank you for standing by. This is the conference Operator. Welcome to Aritzia's first quarter 2027 earnings conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded.

After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press Star then one on your telephone keypad. To need assistance during the conference call, you may signal an operator by pressing Star then zero. I will now turn the conference over to Beth Reed, Vice President, Investor Relations.

Beth Reed, Vice President, Investor Relations Please go ahead. Thanks operator and thank you all for joining Aritzia's first quarter fiscal 2027 earnings call. On the call today, I'm joined by Jennifer Wong, our Chief Executive Officer, and Todd Engledue, our Chief Financial Officer. As a reminder, please note that remarks on this call may include our expectations, future plans, and intentions that may constitute forward-looking information.

Such forward-looking information is based on estimates and assumptions made by management regarding, among other things, general economic and geopolitical conditions as well as the competitive environment. Actual results may differ materially from the conclusions, forecasts, or projections expressed by the forward-looking information. We would refer you to our most recently filed management discussion and analysis and our annual information form, which include a summary of the material assumptions as well as risks and factors that could affect our future performance and our ability to deliver on the forward-looking information.

Our earnings release, the related financial statement, and the MDA are available on SEDAR plus as well as the Investor Relations section of our website. I'll now turn the call over to Jennifer. Jennifer Wong, Chief Executive Officer Thanks Beth and good afternoon everyone and thank you for joining us today. We began fiscal 2027 on an exceptionally strong note, delivering net revenue growth of 43% and a record Q1 adjusted EBITDA margin of 20%.

This drove a 96% increase in adjusted EPS. These results underscore the sustained momentum of our business model and the best-in-class execution of our team. By consistently delivering against our three primary growth pillars, geographic expansion, digital growth, and increased brand awareness, we're amplifying the Aritzia brand and capturing robust client demand. We continue to successfully scale our footprint in the United States while deepening client loyalty in Canada.

Best of all, this momentum across the board has carried into the second quarter. Looking at the drivers behind our momentum, our 43% top line growth was fueled by a robust 35% increase in comparable sales. This performance reflects broad-based strength across the entire business spanning all geographies, channels, and brands in the United States. Q1 net revenue growth accelerated to an exceptional 55%.

This was fueled by widespread demand for our brand across new boutiques, existing boutiques, and Digital. In our US retail channel, we benefited from 16 highly productive new and repositioned boutiques over the last year. We also delivered outstanding comparable sales growth across our existing boutique and in digital. Accelerated momentum was fueled by our new mobile app and strategic marketing investments.

In Canada, we delivered net revenue growth of 25%. Our success was underpinned by exceptional momentum in digital. We also had robust comparable sales growth across our established boutique network. In addition, our new boutique at Oak Ridge Park in Vancouver and our two repositions in the past year are delivering excellent results.

The reopening of our Oak Ridge boutique was a proud full-circle moment for me. When Aritzia was founded by Brian Hill and his family back in 1984, Oak Ridge debuted as our very first standalone location at just 1500 square feet. It's also in the exact shopping center I frequented growing up and where I first met Brian. Today, the reimagined 10,000 square foot space showcases our modern boutique experience while honoring our rich heritage defined by our loyal people and our loyal clients.

To celebrate this milestone, we hosted a series of specialized events for our people, clients, media, and influencers. O