Artizia hit over $1B in quarterly sales. Why is it doing so well?

Martin Landry, managing director and equity research at Stifel, joins BNN Bloomberg to discuss Artizia's earnings number as company sales break $1 billion.

High-quality clothes, U.S. expansion, and a very successful app launch are propelling Aritzia’s sales like never before, according to one retail analyst.

The Vancouver-based retailer surpassed $1 billion in quarterly sales for the first time during its third quarter, according to an earnings report released Thursday.

“That’s one of the highest figure I’ve ever seen in my career,” Martin Landry, a consumer and retail analyst at Stifel Canada, told BNN Bloomberg.

Artizia reported a net revenue of $1.04 billion in the third quarter of 2025, a 43 per cent increase compared to last year.

Landry noted this is the company’s tenth consecutive earnings beat.

“Aritzia is hitting it on all cylinders.. Its products are getting a ton of traction,” said Landry.

Mobile app helped boost e-commerce sales

One of the very successful ways it was able to boost sales was through its mobile app, which it launched late October last year.

“They had 1.4 million downloads,” said Landry.

“This allows them to boost their e-commerce sales. Their e-commerce sales were up really strong, and it allows them to cater the offering on the phone to the person that’s shopping.”

The company’s eCommerce net revenue increased 58.2 per cent to $383 million, which made up 37 per cent of its net revenue according to the company’s report.

Canada, which had the same number of stores and is considered a mature market for the company, still saw a jump in year-over-year sales in eCommerce and in-store sales, said Landry.

“To have sales up 29 per cent in Canada, it’s pretty impressive, and it shows that the company is getting a significant share,” said Landry.

U.S. sales made more than half of company’s revenue

U.S. sales made up nearly 60 per cent of the company’s total revenue, accounting for $621 million.

The company has around 70 stores in the U.S. and stated its ongoing plans to more than double the number of stores to 150. It also plans to open eight stores annually in the U.S.

“Cash is going to compound really rapidly, and that’s what we like to see, and that’s what creates shareholders value,” said Landry.

The company also opened a 25,000-square-foot flagship store in Manhattan’s Flatiron District late last year, bringing its total to three NYC stores. Its largest flagship location is a 46,000-square-foot store on Chicago’s Magnificent Mile.

“Their flagship stores.. are a really good marketing tool for them. It’s also a great way to acquire new customers,” said Landry.

Artizia is ready to go beyond the U.S., Canada

Landry said the company is already showing potential for international growth after it alluded to an international website during its earnings call.

“You got to think that in the next five years, we’re going to see Aritzia with an international presence and boots on the ground internationally,” said Landry.

Company found niche in ‘Everyday Luxury’

Landry said Aritzia has successfully carved out a profitable niche with its ‘Everyday Luxury’ strategy, which encourages customers to invest in high-quality items designed for longevity.

“It’s classic for your work day, for your outings with your friends on weekends, and for lounging at home,” said Landry.

“It’s a broad market. That’s what created their success.”

Fashion comes in cycles, so how high can Aritzia go?

Aritzia’s cash balance has gone up by $650 million, and the company has a lot of flexibility and room to deploy capital to give back to shareholders, said Landry.

He said while he agrees that fashion does come in cycles and could be tricky for retail stores, Aritzia’s fashion is very classical.

“They’re in a really, really good spot. Now, how long it lasts, we’ll see,” said Landry.

“We see it as a great, long term confounder in Canada.”