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Aritzia (TSE:ATZ)
TSX:ATZ
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Aritzia (ATZ) AI Stock Analysis

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TSE:ATZ

Aritzia

(TSX:ATZ)

Rating:80Outperform
Price Target:
C$89.00
▲(11.45% Upside)
Aritzia's overall stock score of 80 is driven by strong financial performance and positive earnings call sentiment, highlighting substantial revenue growth and strategic expansion. While the valuation is relatively high, it reflects the company's robust growth prospects. Technical indicators support a bullish outlook, with the stock trading above key moving averages.
Positive Factors
Customer Engagement
Total traffic growth accelerated, with significant increases in both Canada and the U.S., indicating strong customer engagement.
Financial Performance
Aritzia reported strong Q1/26 adj. EBITDA of $95.3mm, above estimate and consensus.
International Expansion
Aritzia has identified over 150 new locations and is entering 5 new markets, with new boutiques being a consistent growth driver.
Negative Factors
Market Challenges
The company's stock is trading at a notable discount.
Tariff Impact
The stabilizing tariff situation provides support for sales and margins, despite being fluid.

Aritzia (ATZ) vs. iShares MSCI Canada ETF (EWC)

Aritzia Business Overview & Revenue Model

Company DescriptionAritzia Inc. is a Canadian women's fashion retailer known for its stylish and contemporary clothing offerings. Founded in 1984, the company operates in the apparel sector, providing a wide range of products including dresses, tops, outerwear, and accessories. Aritzia caters to a diverse clientele, focusing on high-quality fabrics and modern designs, while also promoting a strong brand identity through its in-house labels. The company has a significant presence in North America, with numerous retail locations and a growing online platform.
How the Company Makes MoneyAritzia generates revenue primarily through the sale of women’s apparel and accessories. The company operates a multi-channel retail model, which includes physical stores and an e-commerce platform, allowing it to reach a broader customer base. Key revenue streams include direct sales from its retail locations, online sales through its website, and the launch of exclusive collections under its proprietary brands. Aritzia also benefits from customer loyalty programs and marketing initiatives that drive repeat purchases. Significant partnerships with influencers and collaborations with other fashion brands enhance its visibility and customer engagement, further contributing to its earnings.

Aritzia Earnings Call Summary

Earnings Call Date:Jul 10, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Oct 08, 2025
Earnings Call Sentiment Positive
The earnings call reflects a very positive sentiment, highlighting substantial revenue growth, significant expansion in the U.S. market, and strong performance across all channels. Despite ongoing challenges with tariffs and macroeconomic uncertainties, Aritzia's strategic initiatives and robust growth metrics position the company well for future success.
Q1-2026 Updates
Positive Updates
Record Revenue Growth
Aritzia achieved net revenue of $663 million, representing a 33% increase over the previous year and exceeding the top end of their guidance range.
U.S. Market Expansion
Net revenue in the United States increased by 45%, driven by new and repositioned boutiques and significant e-commerce growth.
Strong Comparable Sales Growth
Comparable sales grew by 19%, with double-digit positive growth across all channels and geographies.
Retail Channel Success
Retail net revenue increased by 34%, supported by a 25% increase in retail square footage and strategic real estate expansion.
E-Commerce Growth
E-commerce net revenue rose by 30%, facilitated by a 50% increase in U.S. e-commerce traffic and enhancements to the aritzia.com website.
Inventory and Margin Improvements
Gross profit margin expanded 320 basis points to a record 47.2%, aided by optimized inventory and smart spending initiatives.
Adjusted EBITDA Growth
Adjusted EBITDA increased by 77% year-over-year, with a margin expansion of 360 basis points to 14.4%.
Negative Updates
Tariff Challenges
Despite a reduction in U.S. tariffs on Chinese goods from 145% to 30%, tariffs remain a significant challenge, impacting gross margin by approximately 150 basis points for fiscal 2026.
Macro Uncertainty
Ongoing macroeconomic uncertainties, including potential consumer spending slowdowns and tariff changes, pose challenges for future performance.
Company Guidance
In the recent earnings call for Aritzia's first quarter of fiscal 2026, the company reported a significant 33% increase in net revenue, reaching $663 million, which exceeded their guidance range. Growth was evenly distributed across channels, with retail revenue increasing by 34% and e-commerce by 30%. In the U.S., net revenue surged by 45%, fueled by a 40% increase in the active client base and strong performance from new and repositioned boutiques. In Canada, net revenue grew by 17%, supported by strategic marketing and product assortment. Aritzia's retail channel saw a 25% increase in total square footage, with 13 new and 3 repositioned boutiques opened over the past year. The company also achieved a gross profit margin of 47.2%, a 320 basis point increase, and adjusted EBITDA grew by 77% to $95 million. Looking ahead, Aritzia plans to open at least 12 new and 5 repositioned boutiques in fiscal 2026, with expectations of a 19% to 22% revenue growth in Q2. The company remains optimistic about reaching a fiscal 2027 adjusted EBITDA margin target of approximately 19%, amid efforts to mitigate tariff impacts and enhance supply chain diversification.

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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.90B2.74B2.33B2.20B1.49B857.32M
Gross Profit1.27B1.18B898.98M913.99M654.95M312.50M
EBITDA564.88M525.60M331.74M428.97M357.43M159.77M
Net Income234.35M207.79M78.78M187.59M156.92M19.23M
Balance Sheet
Total Assets2.47B2.46B1.95B1.84B1.42B1.14B
Cash, Cash Equivalents and Short-Term Investments292.61M285.63M163.28M86.51M265.25M149.15M
Total Debt906.52M919.22M805.89M772.01M503.79M569.69M
Total Liabilities1.34B1.36B1.14B1.15B893.77M780.47M
Stockholders Equity1.13B1.09B807.50M685.79M530.81M360.26M
Cash Flow
Free Cash Flow267.79M178.52M182.16M-50.67M271.33M83.10M
Operating Cash Flow543.64M455.64M358.82M74.91M338.35M133.95M
Investing Cash Flow-275.86M-277.12M-182.96M-131.21M-99.58M-50.85M
Financing Cash Flow-77.13M-60.37M-98.67M-122.54M-124.09M-48.91M

Aritzia Technical Analysis

Technical Analysis Sentiment
Positive
Last Price79.86
Price Trends
50DMA
73.40
Positive
100DMA
65.24
Positive
200DMA
61.39
Positive
Market Momentum
MACD
1.63
Negative
RSI
65.01
Neutral
STOCH
86.00
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 79.86 is above the 20-day moving average (MA) of 75.45, above the 50-day MA of 73.40, and above the 200-day MA of 61.39, indicating a bullish trend. The MACD of 1.63 indicates Negative momentum. The RSI at 65.01 is Neutral, neither overbought nor oversold. The STOCH value of 86.00 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$7.54B38.2923.27%22.57%197.68%
72
Outperform
C$2.62B28.38126.66%1.21%5.18%17.66%
61
Neutral
$17.75B12.56-5.49%3.02%1.43%-14.12%
$8.20B17.4129.70%1.59%
59
Neutral
C$99.68M27.611.29%-3.33%-78.69%
$1.18B42.3511.35%
61
Neutral
C$125.89M30.45-19.69%2.63%-3376.73%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ATZ
Aritzia
79.86
34.36
75.52%
GIL
Gildan Activewear
55.38
11.10
25.07%
TSE:RET
Reitmans (Canada)
2.06
-0.55
-21.07%
GOOS
Canada Goose Holdings
14.14
2.71
23.71%
TSE:ROOT
Roots Corporation
3.15
1.07
51.44%
TSE:PET
Pet Valu Holdings Ltd.
38.15
14.52
61.45%

Aritzia Corporate Events

Business Operations and StrategyFinancial Disclosures
Aritzia Reports Strong Q1 Fiscal 2026 Financial Results with 33% Revenue Growth
Positive
Jul 10, 2025

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.

Executive/Board ChangesShareholder Meetings
Aritzia Announces Board Changes and Auditor Reappointment at 2025 AGM
Neutral
Jul 9, 2025

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.

Stock Buyback
Aritzia Launches Automatic Share Purchase Plan to Support Share Buyback
Positive
May 27, 2025

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.

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.Date of analysis: Aug 20, 2025