Aritzia Targets Up to C$10.5 Billion Revenue by Fiscal 2032

Aritzia has set a five-year target of C$9.5 billion to C$10.5 billion in revenue for fiscal 2032, a 15 to 17 percent compound annual growth rate, unveiled at its investor day in New York on Tuesday. The Vancouver-based retailer, which generated just over C$3.7 billion in revenue for the year ended March 1, up from C$2.74 billion the year before, plans to fund that growth through U.S. store openings, a digital build-out and its first committed international expansion.

"We're now ready to take international expansion beyond an aspiration and commit to international as part of our plan," said Jennifer Wong, chief executive officer. "Over the next five years, 85 percent of our growth comes from the U.S. and international will be about 10 percent."

All figures are in Canadian dollars. Wong did not say where the first overseas stores would open, but set a path to C$500 million in annual net revenue from international stores and digital by the end of fiscal 2032.

What does the five-year plan contain?

The plan breaks into several concrete commitments:

• Stores: 146 North American boutiques today, targeted to reach 220 by fiscal 2032, with 12 to 14 U.S. openings annually. Stores average 10,000 square feet; flagships run at least 20,000 square feet.
• Digital: North American digital revenue of C$4.1 billion to C$4.5 billion by fiscal 2032, a roughly 20 percent CAGR.
• Repositionings: five to seven store moves per year to better locations, layouts or larger capacity.
• New markets: entry into 15 to 18 additional U.S. markets by fiscal 2032, with square footage growing in the mid-teens annually and the real estate footprint doubling.

Karen Janes, executive vice president of real estate development, said Aritzia holds to a 12-to-18-month payback period for new boutiques. "We've built the capabilities to support that pace of growth, and our discipline around site selection, investment economics remains unchanged," she said. Each new boutique lifts digital sales in its market by an average of approximately 65 percent, demonstrating the interplay of physical and digital channels.

In Canada, where Aritzia's footprint is mature, the focus shifts to optimizing the portfolio and concentrating demand behind the strongest boutiques.

How large is the digital opportunity?

Margot Johnson, chief digital officer, framed the target against the whole company. "In fiscal '32, we project that digital will deliver between $4.1 billion and $4.5 billion in U.S. and Canadian revenue. To contextualize that, that's roughly the size of all of Aritzia today," she said. Digital is expected to deliver approximately half of Aritzia's total growth while remaining committed to profitability.

The gap is the argument. The U.S. digital business runs about twice the size of the Canadian digital business, despite a market ten times larger. Johnson said Aritzia will redesign its website to work as both a brand expression and a commerce engine, build larger "brand moments," and invest over five years in technology, data, AI and new client experiences.

Where does product expansion lead?

Brian James-Beaumont Hill, founder and executive chairman, who runs the product division, identified denim and non-apparel as the growth levers. Aritzia sits at roughly 95 percent ready-to-wear, with denim under 5 percent of the mix. Competitors carry 20, 25 or 30 percent denim, some in the high 30s to low 40s.

"We've assembled the team over the last 2.5 years, and are launching (next) spring a brand-new denim collection. It's not the full collection. The second half of the launch will happen in the fall," Hill said.

He pointed to luxury houses where ready-to-wear is under 20 percent of the mix and handbags, shoes, jewelry, beauty and warm-weather accessories make up the other 80 percent. Aritzia plans to stand up a new internal team for warm-weather climate opportunities as it enters new geographies. From product selection and assortment alone, he sized this as a C$2 billion growth opportunity.

What is the sourcing and positioning backdrop?

Wong tied the economics to the supply chain. "We source from luxury mills. We work in the best production facilities in the world," she said. She described the positioning as "everyday luxury" — luxury-level product, service and environments at an attainable price — calling it a category Aritzia has to itself.

Wong, who joined the company 38 years ago after Hill initially turned down her job application at one store and she persisted at another, prefers to frame targets in five- and ten-year horizons rather than quarter to quarter. "The U.S. remains our primary growth market through fiscal 2032," she said. "Our long-term goal goes further, to become world-famous." The denim launch next spring will offer the first test of whether the assortment math converts.