Aritzia absorbs U.S. tariff hit as revenue growth outpaces cost pressure
Aritzia reported that U.S. tariffs and the end of the de minimis exemption added 260 basis points of pressure to its fiscal 2026 adjusted EBITDA margin while revenue rose 35%. Despite that pressure, gross margin climbed 90 basis points to 43.3% in fiscal 2026 and reached a record 50.3% in the first quarter of fiscal 2027.
The tariff and de minimis headwind amounted to 190 basis points in Q1 FY2027, as noted by CFO Todd Ingledew. U.S. sales jumped 54.5% to $638.1 million in the same quarter, making up 67.1% of total revenue. The company operated 76 U.S. boutiques and 67 Canadian stores at quarter‑end, with most new investment going south of the border.
Last week, we reported on Aritzia and its success south of the Canadian border. The company’s U.S. expansion has exposed the Vancouver-based retailer to a cost that was far less important when Canada accounted for most of its business: American trade policy. This brought about a continuation of our reporting on the retailer, as they navigate the dynamic trade relationships directly influencing its expansion – past and present.
What we know
The additional tariffs and the suspension of the U.S. de minimis exemption put approximately 260 basis points of pressure on Aritzia’s adjusted EBITDA margin in fiscal 2026.
Despite that burden, revenue increased 35%, while adjusted EBITDA margin improved substantially.
Aritzia reported 390 basis points of gross-margin pressure from tariffs and de minimis, yet gross margin still increased 90 basis points to 43.3%.
Tariffs and de minimis represented another 190 basis points of pressure, according to CFO Todd Ingledew, while gross margin increased 310 basis points to a record 50.3%.
U.S. revenue increased 54.5% to $638.1 million in the first quarter and represented 67.1% of company revenue.