Aritzia (ATZ) AI Stock Analysis

• Market Cap: C$7.02B
• Dividend Yield: N/A
• Average Volume (3M): 465.24K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 1.35
• Revenue Growth: 22.57%
• EPS Growth: 197.68%
• Country: CA
• Employees: 8,300
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Retail
• EPS (TTM): 0.42
• Shares Outstanding: 95,124,510
• 10 Day Avg. Volume: 349,854
• 30 Day Avg. Volume: 465,241
• PEG Ratio: 0.23
• Price to Book (P/B): 6.96
• Price to Sales (P/S): 2.78
• P/FCF Ratio: 42.70
• 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$90.11
• Price Target Upside: 22.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 79 Outperform
• Price Target: C$85.00 ▲(15.21% 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

Customer Engagement

In the U.S., both new and returning users increased, with returning users growing for 12 consecutive months, indicating strong customer loyalty.

Financial Performance

Aritzia reported strong Q1/26 adj. EBITDA of $95.3mm, above estimate and consensus.

Market Positioning

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

Digital Metrics

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

Digital Traffic

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 primarily focused on the design and sale of women's apparel and accessories. Founded in 1984 and headquartered in Vancouver, British Columbia, Aritzia operates a network of boutiques across North America and offers a range of in-house brands that cater to a variety of fashion preferences. The company is recognized for its high-quality, trendy clothing and its strong emphasis on customer experience both in-store and online.

How the Company Makes Money

Aritzia generates revenue through the sale of its apparel and accessories via its physical retail locations and e-commerce platform. The company's key revenue streams include its proprietary brands, such as Wilfred, Babaton, and TNA, which are exclusive to Aritzia and help differentiate its offerings from competitors. Aritzia's business model focuses on vertical integration, allowing it to maintain control over the design, production, and retailing of its products, which contributes to higher margins. The company also benefits from its strategic store locations, marketing efforts, and a loyal customer base, which drive consistent sales growth and profitability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.90B	2.74B	2.33B	2.20B	1.49B	857.32M
Gross Profit	1.27B	1.18B	898.98M	913.99M	654.95M	312.50M
EBITDA	564.88M	525.60M	331.74M	428.97M	357.43M	159.77M
Net Income	234.35M	207.79M	78.78M	187.59M	156.92M	19.23M
Balance Sheet
Total Assets	2.47B	2.46B	1.95B	1.84B	1.42B	1.14B
Cash, Cash Equivalents and Short-Term Investments	292.61M	285.63M	163.28M	86.51M	265.25M	149.15M
Total Debt	906.52M	919.22M	805.89M	772.01M	503.79M	569.69M
Total Liabilities	1.34B	1.36B	1.14B	1.15B	893.77M	780.47M
Stockholders Equity	1.13B	1.09B	807.50M	685.79M	530.81M	360.26M
Cash Flow
Free Cash Flow	267.79M	178.52M	182.16M	-50.67M	271.33M	83.10M
Operating Cash Flow	543.64M	455.64M	358.82M	74.91M	338.35M	133.95M
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 Price: 73.78
• 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 73.78 is below the 20-day moving average (MA) of 74.10, above the 50-day MA of 70.55, and above the 200-day MA of 58.73, indicating a neutral trend. The MACD of 1.14 indicates Positive momentum. The RSI at 54.10 is Neutral, neither overbought nor oversold. The STOCH value of 38.47 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	C$7.02B	35.65	23.27%	―	22.57%	197.68%
PET	79 Outperform	C$2.45B	26.58	126.66%	1.28%	5.18%	17.66%
Sector *	57 Neutral	HK$24.67B	3.83	-3.22%	5.89%	0.28%	-59.63%
GIL	―	$7.86B	16.69	29.70%	1.64%	―	―
RET	59 Neutral	C$97.26M	27.35	1.29%	―	-3.33%	-78.69%
GOOS	―	$1.10B	33.84	11.35%	―	―	―
ROOT	61 Neutral	C$128.32M	30.45	-19.69%	―	2.63%	-3376.73%

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.