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Aritzia
(OTC:ATZ)
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Rating:71Outperform
Price Target:
C$177.00
▲(26.49% Upside)
Action:Reiterated
Date:07/11/26
The score is driven primarily by strong financial performance (high margins and improved profitability) and a very bullish earnings call with raised growth and margin guidance. Offsetting these positives are a demanding valuation (P/E ~48.5 with no dividend yield provided) and mixed-to-weak technical momentum signals (negative MACD and sub-50 RSI) despite the price holding above major moving averages.
Positive Factors
Vertical DTC model & owned brands
Aritzia’s vertical, direct-to-consumer model and owned-brand portfolio let it capture retail gross margin, control assortment, and own customer relationships. That structural model supports durable margin capture, merchandising discipline, faster assortment iteration and long-term customer loyalty versus wholesale models.
Negative Factors
Tariff & de‑minimis policy risk
Exposure to evolving U.S. tariff policy is a structural margin vulnerability because management’s guidance already assumes no refund benefits. A sustained tariff increase would directly erode gross margins and require price increases, margin tradeoffs or cost cuts, reducing operating leverage and earnings durability.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical DTC model & owned brands
Aritzia’s vertical, direct-to-consumer model and owned-brand portfolio let it capture retail gross margin, control assortment, and own customer relationships. That structural model supports durable margin capture, merchandising discipline, faster assortment iteration and long-term customer loyalty versus wholesale models.
Read all positive factors
Aritzia (ATZ) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$16.80B
Dividend YieldN/A
Average Volume (3M)733.63K
Price to Earnings (P/E)36.9
Beta (1Y)1.64
Revenue Growth37.45%
EPS Growth92.29%
CountryCA
Employees8,800
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)3.97
Shares Outstanding96,253,100
10 Day Avg. Volume963,168
30 Day Avg. Volume733,635
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)10.21
Price to Sales (P/S)3.75
P/FCF Ratio25.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$181.62Price Target Upside29.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)4.65
Revenue Forecast (FY)C$4.55B
Aritzia Business Overview & Revenue Model
Company Description
Aritzia Inc., a Canadian firm based in Vancouver, specializes in creating and selling a broad selection of women's clothing and fashion accessories across North America. The company's comprehensive product range features diverse apparel, including...
How the Company Makes Money
Aritzia makes money primarily by selling women’s apparel and accessories directly to consumers through (1) retail boutiques and (2) e-commerce. Revenue is largely generated from product sales across its portfolio of in-house brands, with demand dr...
Aritzia Earnings Call Summary
Earnings Call Date:Jul 09, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 14, 2026
Earnings Call Sentiment Positive
The call communicates very strong, broad-based growth (43% revenue growth, 35% comps), record margins (gross margin 50.3%, adjusted EBITDA margin 20.1%), robust digital and U.S. expansion, a strengthened balance sheet, and raised full-year guidance — all signaling sustained momentum. Key risks highlighted include tariff/de minimis impacts (190 bps headwind in Q1 and potential incremental H2 pressure), a 34% inventory increase, normalization of markdowns in the back half, and ongoing investment needs that keep absolute SG&A elevated. On balance the positive operational and financial traction outweighs the noted risks.Positive Updates
Record Top-Line Growth
Net revenue increased 43% year-over-year to $951 million in Q1; comparable sales rose 35%, reflecting broad-based strength across geographies, channels, and brands.
Negative Updates
Tariff and De Minimis Pressure on Gross Margin
Tariffs and suspension of the de minimis exemption pressured gross margin by ~190 basis points in Q1. Guidance assumes a 10% tariff; a potential increase to 20% tariffs would create an incremental ~$25–$30 million headwind in H2. Outlook does not assume any tariff refund benefits.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Top-Line Growth
Net revenue increased 43% year-over-year to $951 million in Q1; comparable sales rose 35%, reflecting broad-based strength across geographies, channels, and brands.
Read all positive updates
Company Guidance
The company raised its fiscal 2027 revenue outlook to $4.55–$4.75 billion (up 23–28% YoY), driven by high‑teens to low‑20s comparable‑sales growth, 12–13 new boutique openings and 4–5 repositions; for Q2 it expects net revenue of $1.10–$1.13 billion (up 35–39% YoY) with comparable sales in the high‑20s, gross profit margin expansion of ~250–300 basis points and SG&A leverage of ~25–75 basis points; for the full year management now forecasts gross profit margin improvement of ~175–225 basis points, SG&A as a percent of revenue flat to down ~50 basis points, and adjusted EBITDA margin of ~19.5%—all guidance assumes U.S. tariffs at 10% and the suspension of the de‑minimis exemption (no tariff refunds included), with an incremental ~ $25–30 million headwind if tariffs rise to 20% later in the year.Aritzia Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
72
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.99B | 3.70B | 2.74B | 2.33B | 2.20B | 1.49B |
| Gross Profit | 1.81B | 1.63B | 1.18B | 898.98M | 913.99M | 654.95M |
| EBITDA | 884.11M | 787.61M | 421.70M | 224.98M | 344.99M | 286.40M |
| Net Income | 456.72M | 381.85M | 207.79M | 78.78M | 187.59M | 156.92M |
Balance Sheet | ||||||
| Total Assets | 3.23B | 3.14B | 2.46B | 1.95B | 1.84B | 1.42B |
| Cash, Cash Equivalents and Short-Term Investments | 471.93M | 592.13M | 285.63M | 163.28M | 86.51M | 265.25M |
| Total Debt | 1.08B | 995.76M | 919.22M | 805.89M | 772.01M | 503.79M |
| Total Liabilities | 1.81B | 1.77B | 1.36B | 1.14B | 1.15B | 893.77M |
| Stockholders Equity | 1.42B | 1.36B | 1.09B | 807.50M | 685.79M | 530.81M |
Cash Flow | ||||||
| Free Cash Flow | 511.03M | 545.11M | 199.61M | 184.53M | -47.85M | 272.93M |
| Operating Cash Flow | 803.73M | 822.77M | 455.64M | 358.21M | 74.91M | 338.35M |
| Investing Cash Flow | -337.10M | -285.21M | -277.12M | -182.96M | -131.21M | -99.58M |
| Financing Cash Flow | -287.00M | -226.90M | -60.37M | -98.06M | -122.54M | -124.09M |
Aritzia Technical Analysis
Neutral
139.93
Price Trends
153.13
Negative
138.21
Positive
122.92
Positive
Market Momentum
-1.90
Positive
43.49
Neutral
31.74
Neutral
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 139.93 is below the 20-day moving average (MA) of 154.60, below the 50-day MA of 153.13, and above the 200-day MA of 122.92, indicating a neutral trend. The MACD of -1.90 indicates Positive momentum. The RSI at 43.49 is Neutral, neither overbought nor oversold. The STOCH value of 31.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ATZ.
Aritzia Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | C$16.80B | 36.94 | 30.33% | ― | 37.45% | 92.29% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | C$104.88M | 40.16 | -0.06% | ― | 1.46% | -27.35% | |
55 Neutral | C$138.75M | 57.47 | 1.70% | ― | 5.59% | ― | |
54 Neutral | C$1.30B | 58.96 | 4.29% | ― | 13.14% | -76.53% |
* Consumer Cyclical Sector Average
TSE:ATZ
Aritzia
146.67
73.90
101.55%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.