Aritzia Inc (TSX:ATZ) reported first quarter fiscal 2027 results that exceeded analyst expectations, driven by strong comparable sales growth, accelerating US demand and higher digital revenue, while the apparel retailer raised its full-year revenue outlook.

Adjusted earnings per diluted share came in at C$0.96, up 95.9% from a year earlier and ahead of analyst estimates of C$0.88.

Net revenue increased 43.4% year over year to C$951 million, surpassing consensus estimates of about C$910.2 million.

Comparable sales rose 35.1% during the quarter ended May 31, with growth across all geographies and sales channels.

US revenue climbed 54.5% to C$638.1 million, accounting for 67.1% of total net revenue, while Canadian revenue increased 25.0% to C$312.9 million.

Digital revenue rose 55.5% to C$284.7 million, representing 29.9% of total revenue.

Aritzia CEO Jennifer Wong attributed the performance to broad-based demand across the business, supported by inventory availability, digital initiatives, boutique openings and marketing investments.

Looking ahead, Aritzia said it expects second quarter net revenue of C$1.1 billion to C$1.125 billion, representing growth of approximately 35% to 39% from the prior year.

The company also increased its fiscal 2027 outlook, forecasting net revenue between C$4.55 billion and C$4.75 billion, representing annual growth of approximately 23% to 28%. The updated guidance includes plans to open 12 to 13 new boutiques and reposition four to five existing locations, with most of the expansion taking place in the United States.

For the full fiscal year, Aritzia expects gross profit margin to increase by approximately 175 to 225 basis points from fiscal 2026, adjusted EBITDA margin to reach about 19.5%, and selling, general and administrative expenses as a percentage of revenue to be flat to down 50 basis points.

Jefferies analysts wrote that the company delivered "another exceptional quarter," with revenue, comparable sales, margins and earnings all exceeding expectations on broad-based strength across the US, Canada, retail and digital channels.

The analysts noted that momentum accelerated into the second quarter, supporting management's higher full-year guidance, and reiterated a constructive view on Aritzia's long-term growth prospects, citing continued US expansion, digital adoption and structural margin improvement.

The analysts also highlighted record gross margins despite tariff-related headwinds, strong productivity from new boutiques and continued digital momentum, including nearly 170% year-over-year growth in international e-commerce sales.