The conclusion of the 'de minimis' threshold is creating challenges for Aritzia due to tariffs.

Aritzia, an apparel retailer, is dealing with increased costs following the end of the U.S. de minimis exemption and adjustments to its fulfillment strategy. CFO Todd Ingledew noted that while the gross profit margin rose by 30 basis points year-over-year, it faced a 410 basis point hit from trade challenges, mainly due to the de minimis policy and tariffs. CEO Jennifer Wong stated that to mitigate these issues, the company moved all U.S. order fulfillment to an expanded Ohio distribution center, enabling significant capacity increases. However, pressures on gross profit margins are expected to continue into Q4.