Aritzia (TSE:ATZ)
TSX:ATZ
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Aritzia
(TSX:ATZ)
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Rating:74Outperform
Price Target:
C$129.00
▲(19.27% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by strong financial performance (profitability and free-cash-flow strength) and a very upbeat earnings call with raised revenue and margin guidance. Offsetting this are mixed technical signals (negative MACD, otherwise neutral momentum) and a valuation that looks moderate-to-high (P/E ~23.2) with no dividend yield provided.
Positive Factors
Free Cash Flow Strength
Consistent, large TTM free cash flow (~$508M, up ~47%) gives durable internal funding for boutique openings, digital investment, and share repurchases. Strong cash conversion supports capital allocation flexibility and cushions the business through retail cycles over the next 2–6 months.
Negative Factors
Tariff / De-minimis Pressure
Regulatory and tariff changes are producing a multi-hundred basis-point headwind to gross margin that is structural until sourcing, pricing, or assortment changes fully mitigate the impact. This persistent cost pressure can compress margins and require sustained execution to offset over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistent, large TTM free cash flow (~$508M, up ~47%) gives durable internal funding for boutique openings, digital investment, and share repurchases. Strong cash conversion supports capital allocation flexibility and cushions the business through retail cycles over the next 2–6 months.
Read all positive factors
Aritzia (ATZ) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$12.58B
Dividend YieldN/A
Average Volume (3M)585.93K
Price to Earnings (P/E)23.2
Beta (1Y)1.62
Revenue Growth26.51%
EPS Growth172.52%
CountryCA
Employees8,300
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)1.10
Shares Outstanding96,633,890
10 Day Avg. Volume544,699
30 Day Avg. Volume585,931
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)6.96
Price to Sales (P/S)2.78
P/FCF Ratio38.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$153.49Price Target Upside41.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)3.97
Revenue Forecast (FY)C$4.21B
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, act...
How the Company Makes Money
Aritzia primarily makes money by selling women’s apparel and accessories directly to consumers (DTC) through two main channels: (1) retail boutiques and (2) its e-commerce platform. Revenue is generated from unit sales across product categories su...
Aritzia Earnings Call Summary
Earnings Call Date:Jan 08, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call communicated overwhelmingly positive operational and financial momentum: record revenue, broad-based channel and geographic growth, a highly successful app launch, margin expansion, strong cash position and share repurchases, and raised near-term guidance. Notable headwinds remain from tariffs and the removal of the de minimis exemption (material margin pressure), transitory fulfillment/DC costs, elevated inventory, and the need to scale international operations. Management appears confident in execution, mitigation plans, and a continued real estate and digital growth cadence.Positive Updates
Record Quarterly Revenue
Total net revenue reached $1.04 billion in Q3 — the company's first $1B quarter — representing a 43% increase year-over-year and outperforming the top end of guidance.
Negative Updates
Tariff and De Minimis Headwinds
Approximately 410 basis points of gross margin pressure in Q3 from tariffs and the removal of the de minimis exemption (about two-thirds tariffs, one-third de minimis); expecting roughly 400 bps of pressure in Q4 and additional tariff/de-minimis pressure embedded in the year.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Revenue
Total net revenue reached $1.04 billion in Q3 — the company's first $1B quarter — representing a 43% increase year-over-year and outperforming the top end of guidance.
Read all positive updates
Company Guidance
Management guided Q4 net revenue of $1.10–$1.125 billion (up 23%–26% year‑over‑year), driven by double‑digit comparable sales (assumed high‑teens comps, trending slightly ahead) and the contribution from boutique openings (four new U.S. boutiques planned in Q4); they expect Q4 gross profit margin to be approximately flat to up ~50 basis points versus Q4 FY25 (despite an estimated ~400 bps headwind from tariffs and the removal of the de‑minimis), SG&A as a percent of sales to be flat to down ~50 bps, and the company indicated the 2‑year stacked comp embedded in the outlook is roughly +43–46%. For full fiscal 2026 they raised net revenue guidance to $3.615–$3.64 billion (up 32%–33%) and increased adjusted EBITDA margin guidance to 16.5%–17% (noting that excluding ~280 bps of tariff/de‑minimis pressure for the year, adjusted EBITDA margin would be above their prior 19% target).Aritzia Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
85
Very Positive
| Breakdown | TTM | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 | Feb 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.41B | 2.74B | 2.33B | 2.20B | 1.49B | 857.32M |
| Gross Profit | 1.52B | 1.18B | 898.98M | 913.99M | 654.95M | 311.40M |
| EBITDA | 635.63M | 377.24M | 219.69M | 337.07M | 277.62M | 85.39M |
| Net Income | 347.22M | 207.79M | 78.78M | 187.59M | 156.92M | 19.23M |
Balance Sheet | ||||||
| Total Assets | 3.17B | 2.46B | 1.95B | 1.84B | 1.42B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 620.50M | 285.63M | 163.28M | 86.51M | 265.25M | 149.15M |
| Total Debt | 1.04B | 919.22M | 805.89M | 772.01M | 503.79M | 569.69M |
| Total Liabilities | 1.83B | 1.36B | 1.14B | 1.15B | 893.77M | 780.47M |
| Stockholders Equity | 1.34B | 1.09B | 807.50M | 685.79M | 530.81M | 360.26M |
Cash Flow | ||||||
| Free Cash Flow | 508.35M | 199.61M | 184.53M | -47.85M | 272.93M | 83.69M |
| Operating Cash Flow | 761.05M | 455.64M | 358.21M | 74.91M | 338.35M | 133.95M |
| Investing Cash Flow | -273.65M | -277.12M | -182.96M | -131.21M | -99.58M | -50.85M |
| Financing Cash Flow | -77.32M | -60.37M | -98.06M | -122.54M | -124.09M | -48.91M |
Aritzia Technical Analysis
Negative
108.16
Price Trends
116.52
Negative
114.20
Negative
96.93
Positive
Market Momentum
-2.20
Positive
40.76
Neutral
58.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATZ, the sentiment is Negative. The current price of 108.16 is below the 20-day moving average (MA) of 112.91, below the 50-day MA of 116.52, and above the 200-day MA of 96.93, indicating a neutral trend. The MACD of -2.20 indicates Positive momentum. The RSI at 40.76 is Neutral, neither overbought nor oversold. The STOCH value of 58.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | C$12.58B | 23.21 | 29.12% | ― | 26.51% | 172.52% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | C$1.41B | 3.20 | 4.23% | ― | 3.78% | -54.87% | |
55 Neutral | C$98.98M | 30.61 | -0.06% | ― | -1.95% | -102.54% | |
54 Neutral | C$153.72M | 14.11 | -21.42% | ― | 4.87% | -1195.39% |
* Consumer Cyclical Sector Average
TSE:ATZ
Aritzia
108.16
57.94
115.37%
TSE:RET
Reitmans (Canada)
2.09
-0.21
-9.13%
TSE:GOOS
Canada Goose Holdings
14.50
3.00
26.09%
TSE:ROOT
Roots Corporation
3.92
1.45
58.70%
TSE:LULU
lululemon athletica inc. Shs Unsponsored Canadian Depoitary Receipt Hedged Reg S
6.37
-2.86
-30.99%
TSE:NKE
NIKE, Inc. Shs B -CAD hedged- Canadian Depositary Receipt Repr Shs B Reg S
9.28
-1.08
-10.43%
Aritzia Corporate Events
Business Operations and StrategyStock Buyback
Aritzia Adopts New Automatic Plan to Sustain Share Buybacks Under NCIB
Positive
Feb 27, 2026
Aritzia Inc. has entered into a new automatic share purchase plan with its designated broker to support its existing normal course issuer bid, which authorizes the repurchase of up to 4,226,994 subordinate voting shares between May 7, 2025 and May...
Business Operations and StrategyStock Buyback
Aritzia Adopts New Automatic Plan to Advance Share Buyback Program
Positive
Feb 27, 2026
Aritzia Inc. has implemented a new automatic share purchase plan with its designated broker to support its ongoing normal course issuer bid, which authorizes the repurchase of up to 4,226,994 subordinate voting shares between May 7, 2025, and May ...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Aritzia Founder Sells Subordinate Voting Shares but Retains Tight Grip on Control
Neutral
Jan 29, 2026
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 t...
Private Placements and FinancingRegulatory Filings and Compliance
Aritzia Founder Brian Hill Launches $200 Million Secondary Share Offering
Neutral
Jan 26, 2026
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 sha...
Business Operations and StrategyPrivate Placements and Financing
Aritzia Founder Brian Hill Launches $200 Million Secondary Share Offering
Neutral
Jan 13, 2026
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 additi...
Business Operations and StrategyFinancial Disclosures
Aritzia Posts Record Q3 as U.S. and Digital Sales Power 43% Revenue Surge
Positive
Jan 8, 2026
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 di...
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.