Aritzia (ATZ) AI Stock Analysis

• Market Cap: $6.92B
• Dividend Yield: N/A
• Average Volume (3M): 448.67K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 1.37
• Revenue Growth: 22.57%
• EPS Growth: 197.68%
• Country: CA
• Employees: 8,300
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Apparel - Retail
• EPS (TTM): 0.42
• Shares Outstanding: 95,124,510
• 10 Day Avg. Volume: 581,402
• 30 Day Avg. Volume: 448,672
• PEG Ratio: 0.72
• Price to Book (P/B): 7.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.37
• 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: $87.60
• Price Target Upside: 18.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 79 Outperform
• Price Target: C$85.00 ▲(14.90%Upside)

Aritzia demonstrates strong financial performance and growth potential, particularly in the U.S. market and e-commerce segments. Despite a premium valuation and overbought technical indicators, the company's strategic initiatives and robust earnings call insights support a positive outlook. Careful management of tariffs and macroeconomic factors will be crucial for sustained success.

Positive Factors

Digital Investments

Paid search traffic increased significantly in both Canada and the U.S., reflecting management's effective digital investments.

Revenue Growth

Revenue growth was strong in both the U.S. and Canada, driven by new boutiques and e-commerce.

U.S. Growth Opportunity

Aritzia is well-positioned to execute on its significant U.S. growth opportunity, reflecting its strong momentum, growing brand affinity, and Everyday Luxury positioning.

Negative Factors

Mobile Engagement

Mobile average pages per visit and mobile average visit duration declined in both Canada and the U.S.

Search Traffic in Canada

Direct and Organic Search traffic declined in Canada, which are indicators of high intent users.

Aritzia Business Overview & Revenue Model

Company Description

Aritzia Inc. is a Canadian fashion retailer known for its exclusive brands and high-quality women's clothing and accessories. The company operates in the retail sector, catering primarily to fashion-forward women through its network of boutiques and an online platform. Aritzia offers a variety of in-house brands, each with its own aesthetic, targeting different segments within the women's fashion market.

How the Company Makes Money

Aritzia makes money primarily through the sale of its branded women's clothing and accessories. The company generates revenue through its network of physical retail stores located in North America, supplemented by its e-commerce platform that extends its reach globally. Key revenue streams include sales from its diverse range of exclusive brands, which are designed in-house and cater to various consumer preferences. Aritzia's strategic retail locations, effective marketing campaigns, and strong brand identity contribute significantly to its earnings. The company's partnerships with suppliers and a focus on customer experience further enhance its revenue-generating capabilities.

Aritzia Financial Statement Overview

Summary

Aritzia has shown strong financial performance with robust revenue growth and improving profitability metrics. The company maintains a healthy balance sheet and effective cash generation. However, rapid growth poses potential challenges in sustaining margins and managing debt levels.

Income Statement

Aritzia has demonstrated strong revenue growth with a CAGR of approximately 22% over the past five years. The gross profit margin is robust, improving from 41% to 43% in the latest year. The net profit margin has also significantly improved from 3% to 8%, reflecting enhanced profitability. EBIT and EBITDA margins also show positive trends, indicating strong operational efficiency. However, the rapid growth may present challenges in sustaining these margins as the company scales.

Balance Sheet

The company has a solid equity base with stockholders' equity growing from $332 million to over $1 billion in five years. The debt-to-equity ratio has remained stable around 0.8, indicating a balanced approach to leverage. An increase in total assets also supports a higher equity ratio. However, the substantial increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Operating cash flow has improved significantly, supporting the company's expansion and capital expenditure needs. The free cash flow to net income ratio remains healthy, indicating effective cash generation relative to earnings. However, the fluctuation in free cash flow growth rates could signal potential volatility in future cash generation capabilities.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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	312.50M
EBITDA	525.60M	331.74M	428.97M	357.43M	159.77M
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	178.52M	182.16M	-50.67M	271.33M	83.10M
Operating Cash Flow	455.64M	358.82M	74.91M	338.35M	133.95M
Investing Cash Flow	-277.12M	-182.96M	-131.21M	-99.58M	-50.85M
Financing Cash Flow	-60.37M	-98.67M	-122.54M	-124.09M	-48.91M

Aritzia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATZ, the sentiment is Positive. The current price of 73.98 is above the 20-day moving average (MA) of 71.59, above the 50-day MA of 68.15, and above the 200-day MA of 57.34, indicating a bullish trend. The MACD of 1.99 indicates Positive momentum. The RSI at 63.04 is Neutral, neither overbought nor oversold. The STOCH value of 23.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ATZ.

Aritzia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATZ	79 Outperform	$6.92B	35.75	23.27%	―	22.57%	197.68%
PET	78 Outperform	C$2.32B	26.44	99.31%	1.41%	4.61%	3.95%
GOOS	77 Outperform	$1.84B	19.86	19.34%	―	1.20%	60.11%
GIL	71 Outperform	C$10.46B	20.34	24.40%	1.82%	6.30%	-10.10%
Sector *	63 Neutral	$16.78B	10.88	-7.08%	3.04%	1.73%	-25.15%
ROOT	60 Neutral	C$123.88M	30.45	-19.69%	―	2.63%	-3376.73%
RET	58 Neutral	C$102.38M	27.75	1.29%	―	-3.33%	-78.69%

Aritzia Corporate Events

Aritzia Reports Strong Q1 Fiscal 2026 Financial Results with 33% Revenue Growth

Aritzia Inc. reported a robust financial performance for the first quarter of Fiscal 2026, with net revenue reaching $663 million, marking a 33% increase from the previous year. This growth was driven by double-digit increases across all channels and geographies, particularly in the United States where revenue surged by 45%. The company’s strategic marketing investments, optimized inventory, and successful Spring/Summer product lines contributed to this success. Aritzia also achieved significant gross profit margin expansion and improved SG&A leverage, resulting in a remarkable adjusted EPS growth of over 90%. The company remains optimistic about its future growth prospects, focusing on geographic expansion, digital growth, and increased brand awareness.

The most recent analyst rating on (TSE:ATZ) stock is a Buy with a C$84.00 price target. To see the full list of analyst forecasts on Aritzia stock, see the TSE:ATZ Stock Forecast page.

Aritzia Announces Board Changes and Auditor Reappointment at 2025 AGM

Aritzia held its 2025 Annual General Meeting of Shareholders, announcing changes to its Board of Directors. Doug Mack and Nick Drake were appointed as new directors, replacing Aldo Bensadoun and Daniel Habashi, who did not seek re-election. The reappointment of PricewaterhouseCoopers LLP as the company’s auditor was also approved. The new board members are expected to enhance Aritzia’s strategic direction and growth, leveraging their extensive experience in the retail and marketing sectors to bring Everyday Luxury to a broader audience.

The most recent analyst rating on (TSE:ATZ) stock is a Buy with a C$52.00 price target. To see the full list of analyst forecasts on Aritzia stock, see the TSE:ATZ Stock Forecast page.

Aritzia Launches Automatic Share Purchase Plan to Support Share Buyback

Aritzia Inc. has implemented an automatic share purchase plan (ASPP) as part of its normal course issuer bid to buy back up to 4,226,994 subordinate voting shares over the next year. This move allows Aritzia to purchase shares during periods when it would typically be restricted due to regulatory or blackout periods, potentially stabilizing its share price and demonstrating confidence in its market value.

The most recent analyst rating on (TSE:ATZ) stock is a Buy with a C$50.00 price target. To see the full list of analyst forecasts on Aritzia stock, see the TSE:ATZ Stock Forecast page.

Aritzia Achieves Robust Growth in Q4 and Fiscal 2025

Aritzia reported strong financial results for the fourth quarter and fiscal year 2025, with a notable net revenue growth of 38% in Q4 and a 26% increase in comparable sales. The company’s success was largely driven by its performance in the U.S., where net revenue surged by 56%. Aritzia’s strategic investments in eCommerce, real estate expansion, and marketing have bolstered its market position, and the company remains confident in navigating future economic conditions with a robust balance sheet.