Aritzia (ATZ) AI Stock Analysis

• Market Cap: C$13.34B
• Dividend Yield: N/A
• Average Volume (3M): 415.60K
• Price to Earnings (P/E): 46.4
• Beta (1Y): 1.43
• Revenue Growth: 26.51%
• EPS Growth: 172.52%
• Country: CA
• Employees: 8,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.59
• Shares Outstanding: 95,606,514
• 10 Day Avg. Volume: 284,860
• 30 Day Avg. Volume: 415,602
• 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$111.67
• Price Target Upside: -3.13% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: C$129.00 ▲(11.90% Upside)

Aritzia's overall stock score reflects its strong financial performance and positive earnings call, highlighting robust growth and strategic expansion, particularly in the U.S. market. However, the high valuation and overbought technical indicators suggest caution. The company's ability to navigate tariff challenges and maintain growth momentum will be key to future performance.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, particularly in the U.S., supporting long-term expansion.

US Market Expansion

The robust growth in the U.S. market highlights Aritzia's successful expansion strategy, positioning it well for continued market penetration and revenue diversification.

Digital Initiatives

Investments in digital platforms enhance customer engagement and sales channels, ensuring Aritzia remains competitive in the evolving retail landscape.

Negative Factors

Tariff Headwinds

Tariff pressures can erode profit margins and increase costs, posing a challenge to maintaining profitability in international markets.

SG&A Expenses

Higher SG&A expenses due to strategic investments may pressure margins, affecting short-term profitability despite long-term growth potential.

Tariff and De Minimis Headwinds

These regulatory changes increase operational costs, potentially impacting pricing strategies and competitive positioning in affected markets.

Aritzia Business Overview & Revenue Model

Company Description

Aritzia (ATZ) is a Canadian fashion retailer that specializes in women's clothing and accessories. Founded in 1984, Aritzia operates in the retail sector, offering a curated selection of high-quality apparel across various brands, including its proprietary labels like Wilfred, TNA, and Babaton. The company focuses on delivering a unique shopping experience through its stylish and contemporary designs, targeting young to middle-aged women. Aritzia operates both brick-and-mortar stores and an e-commerce platform, catering to a diverse range of customers seeking fashionable, trend-driven clothing.

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

Aritzia presents a strong financial profile with consistent revenue growth, robust profitability, and effective cash flow management. The company maintains a healthy balance sheet with manageable leverage and strong returns on equity. Overall, Aritzia is well-positioned for continued growth and stability in the competitive apparel retail industry.

Income Statement

Aritzia's income statement shows robust growth with a TTM revenue growth rate of 6.77% and strong profitability metrics. The gross profit margin of 43.88% and net profit margin of 8.07% indicate efficient cost management and profitability. EBIT and EBITDA margins are healthy at 11.68% and 14.72%, respectively, reflecting strong operational performance. The consistent revenue growth and solid margins highlight Aritzia's competitive positioning in the apparel retail industry.

Balance Sheet

The balance sheet reveals a stable financial structure with a debt-to-equity ratio of 0.80, indicating manageable leverage. Return on equity is strong at 23.12%, showcasing effective use of equity to generate profits. The equity ratio of 42.89% suggests a balanced approach to financing with a good portion of assets funded by equity. Overall, Aritzia maintains a solid balance sheet with a focus on sustainable growth and financial stability.

Cash Flow

Aritzia's cash flow statement reflects positive trends with a free cash flow growth rate of 20.09% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 1.08 and free cash flow to net income ratio of 0.53 demonstrate efficient cash conversion and strong cash flow management. These metrics highlight Aritzia's ability to generate and manage cash effectively, supporting its growth initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.10B	2.74B	2.33B	2.20B	1.49B	857.32M
Gross Profit	1.38B	1.18B	898.98M	913.99M	654.95M	311.40M
EBITDA	505.42M	377.24M	219.69M	337.07M	277.62M	85.39M
Net Income	282.40M	207.79M	78.78M	187.59M	156.92M	19.23M
Balance Sheet
Total Assets	2.81B	2.46B	1.95B	1.84B	1.42B	1.14B
Cash, Cash Equivalents and Short-Term Investments	352.35M	285.63M	163.28M	86.51M	265.25M	149.15M
Total Debt	1.00B	919.22M	805.89M	772.01M	503.79M	569.69M
Total Liabilities	1.60B	1.36B	1.14B	1.15B	893.77M	780.47M
Stockholders Equity	1.20B	1.09B	807.50M	685.79M	530.81M	360.26M
Cash Flow
Free Cash Flow	346.61M	199.61M	184.53M	-47.85M	272.93M	83.69M
Operating Cash Flow	618.79M	455.64M	358.21M	74.91M	338.35M	133.95M
Investing Cash Flow	-292.83M	-277.12M	-182.96M	-131.21M	-99.58M	-50.85M
Financing Cash Flow	-80.45M	-60.37M	-98.06M	-122.54M	-124.09M	-48.91M

Aritzia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 115.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 115.28 is above the 20-day moving average (MA) of 108.74, above the 50-day MA of 98.50, and above the 200-day MA of 74.66, indicating a bullish trend. The MACD of 4.88 indicates Negative momentum. The RSI at 76.21 is Negative, neither overbought nor oversold. The STOCH value of 84.13 is Negative, 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	78 Outperform	C$13.34B	46.40	26.49%	―	26.51%	172.52%
GIL	75 Outperform	$11.89B	18.23	31.12%	1.51%	6.64%	27.37%
RET	68 Neutral	C$106.77M	133.44	0.35%	―	-3.57%	-95.88%
GOOS	66 Neutral	$1.76B	65.44	6.07%	―	3.78%	-54.87%
PET	64 Neutral	C$2.04B	22.16	106.59%	1.67%	5.09%	14.05%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ROOT	61 Neutral	C$136.66M	-4.41	-19.60%	―	4.87%	-1195.39%

Aritzia Corporate Events

Aritzia Achieves Strong Q2 Fiscal 2026 Growth with 32% Revenue Increase

Aritzia reported a significant 32% increase in net revenue for the second quarter of Fiscal 2026, reaching $812 million, driven by robust demand across all channels and geographies. The company’s strategic initiatives, including new boutique openings and marketing investments, contributed to a 41% revenue increase in the United States, highlighting the brand’s growing awareness and affinity. The company also achieved substantial growth in adjusted net income per diluted share, reflecting strong operational execution and a healthy balance sheet, positioning Aritzia well for future growth opportunities.