Aritzia (ATZ) AI Stock Analysis

• Market Cap: C$12.46B
• Dividend Yield: N/A
• Average Volume (3M): 589.64K
• Price to Earnings (P/E): 35.3
• Beta (1Y): 1.42
• Revenue Growth: 26.51%
• EPS Growth: 172.52%
• Country: US
• Employees: 8,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 1.10
• Shares Outstanding: 95,741,550
• 10 Day Avg. Volume: 680,061
• 30 Day Avg. Volume: 589,645
• PEG Ratio: 0.23
• Price to Book (P/B): 6.96
• Price to Sales (P/S): 2.78
• P/FCF Ratio: 38.19
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$151.27
• Price Target Upside: 40.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 3.11
• Revenue Forecast (FY): C$3.64B

• Rating: 75 Outperform
• Price Target: C$121.00 ▲(12.10% Upside)

The score is driven by strong financial performance (profitability and accelerating free cash flow) and a positive technical trend supported by improving business momentum and guidance from the latest earnings call. Offsetting factors are a high valuation (P/E 41.32), extended momentum signals (RSI/Stoch elevated), and risks from tariffs and a meaningful debt load.

Positive Factors

Strong free cash flow generation

Sustained, sizeable FCF gives Aritzia durable financial flexibility: it supports boutique expansion, digital investments, and share returns without relying solely on new debt. High cash generation also provides a buffer through retail cycles and funds strategic reinvestments.

Healthy margins and improved profitability

Elevated gross and operating margins indicate structural product and pricing strength versus many peers. Durable margin levels enable reinvestment in stores, marketing and tech while supporting EBITDA resilience during moderate demand swings and provide capacity for strategic spending.

U.S. expansion and digital traction

Meaningful U.S. store openings and double-digit U.S. sales growth reflect a scalable international growth vector. Coupled with enhanced e-commerce and a planned mobile app, this diversifies revenue away from Canada and builds a multi-channel platform with longer-term market share opportunity.

Negative Factors

Meaningful absolute debt load

A sizable absolute debt balance constrains strategic optionality if sales slow or margins compress. Interest and covenant risk reduce capital flexibility for M&A or buybacks and increase refinancing sensitivity over a multi-quarter horizon, especially in a higher rates backdrop.

Tariff-related cost headwinds

Structural tariff changes raise the company's landed cost base across key sourcing countries. Persistent tariff pressures can erode gross margins or force price increases that dampen demand, complicating long-term margin planning and sourcing strategies across seasons.

Historical margin and cash-flow volatility

Intermittent negative FCF and margin swings indicate sensitivity to inventory cycles, working-capital timing and retail demand. This volatility makes multi-quarter forecasting less reliable and increases the need for conservative liquidity management during slower retail periods.

Aritzia Business Overview & Revenue Model

Company Description

Aritzia Inc., together with its subsidiaries, designs and sells apparels and accessories for women in North America. It offers t-shirts and tops, bodysuits, shirts and blouses, sweaters, jumpsuits and rompers, shirt jackets, skirts, bodysuits, activeware, knitwear, sweatsuits, pants, denims, leggings, bike shorts, dresses, jackets, blazers, jackets and coats, and shoes, as well as accessories, including hats, socks, face masks, intimates, gloves and mittens, belts, scarves, scrunchies, bags, and iphone cases. The company offers its products under the Wilfred, Super World, Babaton, and TNA brands. As of February 27, 2022, it operates approximately 105 boutiques. In addition, it sells its products through online at aritzia.com. The company was formerly known as Aritzia Capital Corporation and changed its name to Aritzia Inc. in August 2016. Aritzia Inc. was founded in 1984 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Aritzia generates revenue primarily through the sale of women's apparel and accessories in its retail stores and online. The company's revenue model is based on direct sales to consumers, which includes a diverse range of products from casual wear to formal attire. Key revenue streams include in-store sales, online sales through its e-commerce platform, and seasonal collections that drive customer engagement. Aritzia also benefits from a loyal customer base and a strong brand identity, which contribute to repeat purchases. Additionally, the company may leverage partnerships with influencers and fashion events to enhance brand visibility and drive traffic to both its physical and online stores, further supporting its earnings.

Aritzia Financial Statement Overview

Summary

Strong TTM profitability and operating momentum (revenue up ~10%, gross margin ~44.6%, operating margin ~14.8%, net margin ~10.2%) with very solid cash generation (TTM operating cash flow ~$761M; free cash flow ~$508M, up ~47%). Key offsets are a meaningful absolute debt load (~$1.04B) and historical volatility in margins and free cash flow (FY2023 dip/weak FCF), reflecting retail-cycle sensitivity.

Income Statement

TTM (Trailing-Twelve-Months) results show solid operating momentum with revenue up ~10% and healthy profitability (gross margin ~44.6%, operating margin ~14.8%, net margin ~10.2%). Profitability has improved meaningfully versus FY2023 (net margin ~3.4%), reflecting better cost leverage and mix. The main watch-out is some year-to-year volatility in margins and earnings (notably the FY2023 dip), which suggests results can be sensitive to demand and retail cost pressures.

Balance Sheet

Leverage is moderate with TTM (Trailing-Twelve-Months) debt-to-equity around 0.77 (improving from ~1.00 in FY2023), and equity has grown to ~$1.34B alongside asset growth. Returns to shareholders are strong (TTM return on equity ~29%), indicating efficient capital use. The key weakness is still a meaningful absolute debt load (~$1.04B), which can constrain flexibility if the cycle turns or margins compress.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow is ~$761M and free cash flow is ~$508M, with free cash flow up sharply (~47%). Free cash flow comfortably exceeds reported earnings (free cash flow to net income ~0.67), supporting reinvestment capacity. A moderate drawback is that cash conversion is not consistently best-in-class across years (e.g., weaker/negative free cash flow in FY2023), indicating periodic working-capital or investment swings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.74B	2.33B	2.20B	1.49B	857.32M
Gross Profit	1.18B	898.98M	913.99M	654.95M	311.40M
EBITDA	377.24M	219.69M	337.07M	277.62M	85.39M
Net Income	207.79M	78.78M	187.59M	156.92M	19.23M
Balance Sheet
Total Assets	2.46B	1.95B	1.84B	1.42B	1.14B
Cash, Cash Equivalents and Short-Term Investments	285.63M	163.28M	86.51M	265.25M	149.15M
Total Debt	919.22M	805.89M	772.01M	503.79M	569.69M
Total Liabilities	1.36B	1.14B	1.15B	893.77M	780.47M
Stockholders Equity	1.09B	807.50M	685.79M	530.81M	360.26M
Cash Flow
Free Cash Flow	199.61M	184.53M	-47.85M	272.93M	83.69M
Operating Cash Flow	455.64M	358.21M	74.91M	338.35M	133.95M
Investing Cash Flow	-277.12M	-182.96M	-131.21M	-99.58M	-50.85M
Financing Cash Flow	-60.37M	-98.06M	-122.54M	-124.09M	-48.91M

Aritzia Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 107.94
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATZ, the sentiment is Neutral. The current price of 107.94 is below the 20-day moving average (MA) of 122.81, below the 50-day MA of 116.03, and above the 200-day MA of 85.06, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 32.93 is Neutral, neither overbought nor oversold. The STOCH value of 4.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ATZ.

Aritzia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATZ	75 Outperform	C$12.46B	35.28	30.09%	―	26.51%	172.52%
GOOS	66 Neutral	C$1.61B	60.74	6.07%	―	3.78%	-54.87%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RET	55 Neutral	C$112.31M	-289.29	-0.06%	―	-1.95%	-102.54%
ROOT	48 Neutral	C$123.52M	-4.05	-19.60%	―	4.87%	-1195.39%

Aritzia Corporate Events

Aritzia Founder Sells Subordinate Voting Shares but Retains Tight Grip on Control

Aritzia has completed a secondary offering of 1,602,000 subordinate voting shares held by founder and executive chair Brian Hill and related entities, at a price of $130.20 per share, generating gross proceeds of approximately $208.6 million for the selling shareholders. The company itself will not receive any proceeds from the transaction, which was conducted on a bought deal basis by a syndicate of major Canadian underwriters and qualified via a Canadian short form prospectus. Following the offering, Hill retains control through 18.3 million multiple voting shares, maintaining roughly 65.3% of the company’s voting power and about 15.8% equity on a non-diluted basis, while no longer holding any subordinate voting shares; the structure underscores his continuing influence over Aritzia’s strategic direction despite the partial liquidity event for his holdings.

The most recent analyst rating on (TSE:ATZ) stock is a Buy with a C$135.00 price target. To see the full list of analyst forecasts on Aritzia stock, see the TSE:ATZ Stock Forecast page.

Aritzia Founder Brian Hill Launches $200 Million Secondary Share Offering

Aritzia has filed a final short form prospectus in Canada, excluding Québec, to qualify a secondary offering of 1,537,000 subordinate voting shares held by founder and executive chair Brian Hill and related entities, priced at $130.20 per share for gross proceeds of about $200.1 million to the selling shareholders. The company will not receive any proceeds from this bought deal secondary sale, which may be increased through an over-allotment option granted to underwriters, signaling a partial liquidity event and stake reduction by the founder without altering Aritzia’s capital-raising plans or immediate operating funding, while keeping the shares off U.S. public markets due to securities law restrictions.

The most recent analyst rating on (TSE:ATZ) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on Aritzia stock, see the TSE:ATZ Stock Forecast page.

Aritzia Founder Brian Hill Launches $200 Million Secondary Share Offering

Aritzia announced a $200 million secondary offering of 1,537,000 subordinate voting shares held by founder and executive chair Brian Hill and related entities, sold to BMO Capital Markets on a bought-deal basis at $130.20 per share, with an additional over-allotment option of up to 230,550 shares for market stabilization. The company will not receive any proceeds from the transaction, which is being conducted for Hill’s estate planning, portfolio diversification, and charitable giving, including via the family’s ARON Charitable Foundation; Hill will remain Aritzia’s largest shareholder with an approximate 15.9% equity interest, while the offering, to be qualified by a Canadian short form prospectus and potentially placed privately in the U.S. and internationally, modestly increases the public float without altering control of the company.

The most recent analyst rating on (TSE:ATZ) stock is a Buy with a C$147.00 price target. To see the full list of analyst forecasts on Aritzia stock, see the TSE:ATZ Stock Forecast page.

Aritzia Posts Record Q3 as U.S. and Digital Sales Power 43% Revenue Surge

Aritzia reported record third-quarter fiscal 2026 results, with net revenue surging 42.8% year over year to $1.04 billion and comparable sales up 34.3%, driven by strong demand for its Fall/Winter assortment, new boutique openings, and enhanced digital initiatives, including the launch of its app. U.S. revenue jumped 53.8% to $621.1 million, now nearly 60% of total sales, while eCommerce revenue climbed 58.2% to $383.0 million. Profitability also improved, with adjusted EBITDA up 52.2%, net income rising 87.5% to $138.9 million, and margins expanding as SG&A costs fell as a percentage of revenue, underscoring the leverage in Aritzia’s operating model. Management highlighted continued momentum into the fourth quarter, particularly over the holiday period, reinforcing the company’s position as a fast-growing North American apparel player and signaling ongoing benefits for shareholders from its geographic expansion, digital growth, and brand-building strategy.

The most recent analyst rating on (TSE:ATZ) stock is a Buy with a C$133.00 price target. To see the full list of analyst forecasts on Aritzia stock, see the TSE:ATZ Stock Forecast page.