Aritzia (TSE:ATZ) outlined a five-year growth plan targeting approximately CAD 9.5 billion to CAD 10.5 billion in net revenue by fiscal 2032, roughly double its expected fiscal 2027 revenue, alongside adjusted EBITDA margin expansion to 21%.
At an investor day in New York, CEO Jennifer Wong said the company’s next phase will focus on expanding its Everyday Luxury brand in the U.S., scaling digital commerce, broadening its product assortment and beginning a measured international expansion. The U.S. is expected to account for more than 85% of incremental growth through fiscal 2032.
“We’re not building for just the next five years,” Wong said. “We’re building the capacity, capability, and resilience to keep growing beyond this plan.”
Revenue, Margin and Capital Targets
CFO Todd Ingledew said Aritzia expects fiscal 2027 revenue of CAD 4.78 billion to CAD 4.88 billion, more than CAD 1.1 billion above the target set at its 2022 investor day. The company expects a 20% adjusted EBITDA margin in fiscal 2027, compared with its prior 19% target.
For the fiscal 2027-to-fiscal 2032 period, Aritzia is targeting 15% to 17% compound annual revenue growth. Ingledew said the company expects adjusted EBITDA margin to rise by about 100 basis points by fiscal 2032, supported by gross-margin improvement and leverage on fixed costs, while continuing investments in technology, digital initiatives and international expansion.
The company expects to invest about CAD 2 billion in capital expenditures over the next five years, or approximately 5% to 6% of revenue annually. The planned investment includes:
- Approximately CAD 1.1 billion to nearly double retail square footage.
- Approximately CAD 500 million to add roughly 2 million square feet of U.S. distribution capacity.
- Approximately CAD 400 million for technology, its digital roadmap, office expansion and capital maintenance.
After funding growth initiatives, Aritzia plans to return about 50% of free cash flow to shareholders through repurchases, representing an estimated CAD 2 billion over five years. The company expects to build its cash balance to approximately CAD 3 billion by the end of fiscal 2032.
U.S. Boutiques and Digital Commerce
Executive Vice President of Real Estate Karen Janes said the company expects to have 87 U.S. boutiques by the end of fiscal 2027 and 160 by fiscal 2032, with a potential for 200 stores at maturity. Aritzia plans to open 12 to 14 boutiques annually in the U.S. through fiscal 2032 and enter 15 to 18 additional U.S. markets.
The company also expects to reposition five to seven existing boutiques annually. Janes said new boutiques are targeted to achieve a 12- to 18-month payback period, while current new-store performance is running at less than 12 months, according to Ingledew.
Janes said a new boutique in a market has generated, on average, an approximately 65% lift in digital sales in that market. Through fiscal 2032, Aritzia expects total retail square footage to grow at a mid-teens annual rate.
Chief Digital Officer Margot Johnson said digital revenue is expected to exceed CAD 4.1 billion to CAD 4.5 billion in the U.S. and Canada by fiscal 2032, representing about half of Aritzia’s expected total growth. The company projects roughly 20% digital revenue CAGR over the period.
Johnson said the Aritzia app had more than 2.5 million downloads before its first anniversary and now generates roughly one-third of the company’s digital business. The company plans to introduce a loyalty program spanning boutiques and digital channels, redesign its website and continue investing in technology, data, AI and customer experiences.
Product and International Expansion
Founder and Executive Chairman Brian Hill said product assortment expansion represents a CAD 2 billion opportunity, of which Aritzia expects about CAD 1.5 billion to be incremental revenue by fiscal 2032. The company sees room to expand denim, non-ready-to-wear categories and warm-weather assortments.
Aritzia plans to launch a new denim collection in spring 2027, followed by a second phase in fall 2027. Hill said denim currently represents less than 5% of Aritzia’s sales, compared with 20% to 30% or more at certain competitors. The company’s non-ready-to-wear categories, including handbags, shoes, jewelry, beauty products and warm-weather accessories, currently represent about 5% of sales, he said.
Hill said the new categories will be Aritzia-branded. He added that the company is evaluating its approach to menswear and Reigning Champ, which it acquired previously, but said its primary focus remains the opportunities outlined for Aritzia’s core business.
International expansion will contribute about 10% of incremental growth through fiscal 2032, according to Wong. Aritzia is targeting CAD 500 million in annual international net revenue by the end of fiscal 2032, with the contribution roughly balanced between digital and boutiques.
Wong said Aritzia has shipped to 171 of the 180 countries it serves and has recorded more than 162,000 orders through its international website. Sales outside Canada and the U.S. have more than doubled, she said. The company plans to prioritize markets with strong demand signals, similar fashion preferences and compatible operational conditions as it begins opening boutiques outside North America.
About Aritzia (TSE:ATZ)
Aritzia Inc is an integrated design house of exclusive fashion brands. It designs apparel and accessories for its collection of exclusive brands and sells them under the Aritzia banner. The category of products offered by the firm is blouses, T-shirts, pants, dresses, sweaters, jackets and coats, skirts, shorts, jumpsuits, and accessories. Its geographical segments include Canada and the United States. The company generates the majority of revenue from Retail, followed by eCommerce.
