Aritzia: Strengthened Growth Profile, Operational Resilience, and Upgraded Guidance Support Buy Rating

William Blair analyst Dylan Carden has maintained their bullish stance on ATZAF stock, giving a Buy rating on January 6.

Dylan Carden has given his Buy rating due to a combination of factors that highlight Aritzia’s strengthened growth profile and operational execution. He points to the company’s broad-based outperformance in the fiscal third quarter, noting that both retail and e-commerce, particularly following the launch of its new app and stepped-up marketing efforts, are contributing meaningfully to upside versus expectations. Even with notable headwinds from tariffs and the loss of de minimis benefits pressuring gross margin, Aritzia still delivered an adjusted EBITDA margin around 20%, surpassing prior forecasts and demonstrating resilience in profitability. In addition, management raised full-year guidance for both revenue and earnings, with fourth-quarter targets already above earlier projections and current trends suggesting room for further positive surprises.

Carden also emphasizes that the business is entering this next phase from a structurally stronger position than during the post-pandemic volatility. Past challenges tied to excess inventory and constrained product “newness” have been addressed, allowing Aritzia to return to its core, fast-moving merchandising model that historically supports healthy comparable sales and margin performance. He underscores that when viewed over multi-year periods (three to six years), the company’s annualized growth remains robust and relatively stable, indicating that recent strength is not merely a short-term rebound but part of a durable long-term trajectory. Taken together—improved inventory discipline, ongoing store expansion, accelerating digital engagement, and upgraded guidance—these elements underpin his conviction that the shares offer attractive upside from current levels, justifying a Buy rating.

Carden covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, National Vision Holdings, and thredUP. According to TipRanks, Carden has an average return of 17.5% and a 62.79% success rate on recommended stocks.

In another report released on January 6, Desjardins also maintained a Buy rating on the stock with a C$133.00 price target.