Can a clothing chain outgrow a flat economy?

Aritzia just delivered its first-ever $1bn quarter and raised guidance while much of Canadian retail is described as “flat‑ish” and “anemic.”  

That gap is what matters for people looking at the stock as an investment story, not a fashion story. 

Aritzia reported revenue of $1.04bn for the quarter ended November 30, up 43 percent year over year and ahead of analyst expectations of $934.2m, according to The Wall Street Journal.  

Profit rose to $138.9m, or $1.16 a share, compared with $74.1m, or $0.63 a share a year earlier, with adjusted earnings of $1.10 a share versus consensus of $0.89. 

In Canada, the retailer crossed the $1bn quarterly sales mark for the first time, which Stifel Canada analyst Martin Landry described as “one of the highest figure I’ve ever seen in my career.” 

He also pointed out this quarter marked Aritzia’s tenth consecutive earnings beat, BNN Bloomberg reports. 

Management raised its full‑year sales outlook to a range of $3.62bn to $3.64bn from $3.3bn to $3.35bn, compared with analyst expectations of $3.41bn, as per The Wall Street Journal.  

For the current quarter, Aritzia now expects $1.1bn to $1.13bn in revenue, ahead of the $1.01bn analysts forecast. 

Chief executive Jennifer Wong said sales in October and November exceeded expectations and accelerated through the quarter, and she described the business as “firing on all cylinders” heading into Q4. 

Wong also said lower markdowns versus last year supported results, helped by broad-based demand for the company’s products.

Landry noted that Aritzia’s cash balance has risen by $650m, giving it “a lot of flexibility and room to deploy capital to give back to shareholders,” according to BNN Bloomberg. 

The US is now the main engine.  

US sales rose 54 percent and made up nearly 60 percent of total revenue, or about $621m in the quarter. 

The company operates roughly 70 US stores and plans to more than double that to 150, opening about eight stores a year. 

Flagships remain a deliberate brand and acquisition play.  

Aritzia opened a 25,000‑square‑foot flagship in Manhattan’s Flatiron District late last year, bringing its New York City count to three stores, while its largest flagship is a 46,000‑square‑foot site on Chicago’s Magnificent Mile.  

Landry called these locations “a really good marketing tool” and “a great way to acquire new customers,” according to BNN Bloomberg. 

Canada is mature but still growing.  

Revenue in Canada rose 29 percent, with gains in both e‑commerce and stores, The Wall Street Journal. 

Landry said that kind of growth in a stable Canadian store base shows the company “is getting a significant share,” according to BNN Bloomberg.  

Comparable sales were up 34 percent overall, with double‑digit increases across all channels and geographies, the Journal reported. 

Landry added that management hinted at an international website on the earnings call and said “in the next five years, we’re going to see Aritzia with an international presence and boots on the ground internationally,” BNN Bloomberg reports. 

The biggest near‑term lever is digital, especially the mobile app.  

Aritzia launched its app in late October last year and reached about 1.4m downloads, which Landry highlighted as a major driver of e‑commerce, according to BNN Bloomberg.  

He said the app “allows them to boost their e‑commerce sales” and to “cater the offering on the phone to the person that’s shopping.” 

The numbers back that up.  

eCommerce net revenue rose 58.2 percent to $383m and accounted for 37 percent of total net revenue, according to the company’s report cited by BNN Bloomberg.  

Wong told analysts the app has been downloaded more than 1m times, beating the company’s expectations for the entire first year and lifting conversion, as per The Wall Street Journal. 

This lines up with what Deloitte Canada has found more broadly: its research says 75 percent of customers are more likely to buy from brands that can deliver a truly personalized experience across channels, but only 45 percent of brands say they are doing that effectively.  

That gap creates room for retailers that execute well on data, apps and AI‑enabled personalization to pull ahead. 

Against that, the Canadian consumer is getting more defensive.  

Toronto Metropolitan University retail expert Donna Smith told CTV News that food prices rose about four percent year over year, rent climbed nearly five percent and apparel — a discretionary category — has grown more slowly.  

Statistics Canada data cited by CTV showed food prices up about 3.4 percent against overall inflation of 2.2 percent, with rent up 4.8 percent year over year. 

Retail analyst Bruce Winder described the 2025 environment as “a frugal consumer, a cautious consumer,” and said elevated unemployment, trade tensions and weaker confidence are showing up in hiring freezes, reduced investment and a “flat‑ish” overall retail picture, according to CTV News.  

He pointed to Hudson’s Bay Company’s creditor‑protection filing and the move to liquidate all but six stores as a clear sign of pressure on legacy formats. 

At the same time, discount and private label growth show how price‑sensitive the market has become. Smith told CTV News that “Dollarama is going gangbusters,” while Winners benefits from its “treasure‑hunt” model even without e‑commerce.  

She and Winder also highlighted a shift toward private label and second‑hand, citing a Retail Insider survey where 77 percent of Canadians bought at least one pre‑owned item in 2025 and 73 percent said sustainability motivated them, as reported by CTV. 

CTV news note that AI‑driven demand forecasting and personalization are becoming standard tools to manage risk and drive loyalty in this environment.  

Within a cautious, value‑driven Canadian consumer landscape, Aritzia is still: 

• Growing revenue at 43 percent year over year with a clean earnings beat and rising profit, according to The Wall Street Journal. 
• Shifting its mix toward a fast‑growing US base while still posting 29 percent growth in Canada.
• Scaling an app‑centred, personalization‑friendly digital model that is already driving a 58.2 percent jump in eCommerce net revenue and better conversion.

Landry cautioned that fashion is cyclical but argued Aritzia’s “very classical” approach puts it “in a really, really good spot,” and called it “a great, long term confounder in Canada,” BNN Bloomberg reports.