North American trade relations don't appear to be diminishing the growing affinity Americans have for one of Canada's most fashionable brands.
Aritzia Inc. revealed Thursday that its U.S. customer base increased by 40 per cent from a year ago and its net revenue coming from the country spiked 45 per cent to $413 million over the same time period.
The results signal the Vancouver-based clothing company, which has spent recent years diving deeper into the U.S. market, isn't falling out of favour south of the border. In fact, it's gaining popularity there, even as U.S. President Donald Trump increasingly threatens Canada.
"Our recent results underscore the strength of our business model and growing appreciation for our brand and yet we still have a long runway for growth in the United States," Aritzia chief executive Jennifer Wong told analysts on a Thursday call.
Her remarks come as businesses have found their operations hampered by intensifying tariff tensions stretching across the globe and consumers' growing interest in supporting domestic businesses — and cutting costs.
Wong estimates about 40 per cent of Aritzia's business is not impacted by tariffs because it falls outside of the U.S. However, she conceded "macro uncertainty, including U.S. tariffs and broader consumer concerns, continues to pose unique challenges for virtually every company across all industries."
In Aritzia's case, one of the biggest challenges comes from China. The country has been targeted heavily by Trump but is used by Aritzia for production, thus making it more costly for the company to ship clothing directly from Asian manufacturers to its U.S. boutiques.
The retailer has responded by edging away from relying on China for manufacturing.
By the time its spring 2026 collection hits shelves, it expects the portion of products it will sell that are made in China to be in the mid-single digits, if not lower, Wong said.
Before she spoke with analysts, Aritzia revealed its net income soared to $42.4 million in its latest quarter.
The first quarter result compared with a net income of $15.8 million a year prior.
It amounted to roughly 36 cents in earnings per diluted share, compared with 14 cents per share a year before.
Aritzia said the increase reflected the retailer's expansion (it's opened 13 boutiques in the last year) and revenue growth it saw across both its brick-and-mortar and e-commerce businesses.
Its net revenue increased 33 per cent in the period ended June 1, bringing it to $663.3 million.
Its retail net revenue alone rose 34.2 per cent to $480.3 million, while its e-commerce revenue climbed 30 per cent to $183 million, compared to $140.8 million in Q1 2025. The continued momentum in the Company.
On an adjusted basis, the company reported a net income of $49.3 million, compared with $25 million a year ago.
That translated to adjusted earnings of 42 cents per diluted share compared with 22 cents the year before.
This report by The Canadian Press was first published July 10, 2025.
Companies in this story: (TSX:ATZ)
Tara Deschamps, The Canadian Press
