Aritzia (ATZ) AI Stock Analysis

• Market Cap: $8.20B
• Dividend Yield: N/A
• Average Volume (3M): 539.54K
• Price to Earnings (P/E): 41.5
• Beta (1Y): 1.49
• Revenue Growth: 22.57%
• EPS Growth: 197.68%
• Country: CA
• Employees: 8,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.42
• Shares Outstanding: 95,450,890
• 10 Day Avg. Volume: 558,933
• 30 Day Avg. Volume: 539,541
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.92
• Enterprise Value/Gross Profit: 6.66
• Enterprise Value/Ebitda: 15.02
• 1Y Price Target: $94.18
• Price Target Upside: 9.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 80 Outperform
• Price Target: C$89.00 ▲(3.80% 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

Negative Factors

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, activeware, knitwear, sweatsuits, pants, denims, leggings, bike shorts, dresses, jackets, blazers, jackets and coats, and shoes, as well as accessories, including hats, socks, face masks, intimates, gloves and mittens, belts, scarves, scrunchies, bags, and iphone cases. The company offers its products under the Wilfred, Super World, Babaton, and TNA brands. As of February 27, 2022, it operates approximately 105 boutiques. In addition, it sells its products through online at aritzia.com. The company was formerly known as Aritzia Capital Corporation and changed its name to Aritzia Inc. in August 2016. Aritzia Inc. was founded in 1984 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Aritzia 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 Financial Statement Overview

Summary

Aritzia exhibits strong financial performance with robust revenue growth, healthy profit margins, and efficient cash conversion. The income statement shows a 6.02% revenue increase and solid profitability metrics. The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio and strong return on equity. Cash flow performance is commendable with a 50% growth in free cash flow.

Income Statement

Aritzia has demonstrated strong revenue growth with a 6.02% increase in TTM, supported by solid gross and net profit margins of 43.88% and 8.07% respectively. The EBIT and EBITDA margins are healthy at 12.91% and 19.46%, indicating efficient operations. The consistent revenue growth trajectory and profitability metrics suggest a robust income statement performance.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.80, reflecting a balanced approach to leverage. Return on equity is strong at 23.12%, showcasing effective use of shareholder funds. The equity ratio stands at 45.73%, indicating a stable financial structure. Overall, the balance sheet reflects a stable financial position with manageable leverage.

Cash Flow

Aritzia's cash flow performance is commendable with a 50% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.08 and free cash flow to net income ratio of 0.49 suggest efficient cash conversion. The positive cash flow trajectory supports the company's financial health.

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: 85.74
• 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 85.74 is above the 20-day moving average (MA) of 85.46, above the 50-day MA of 79.23, and above the 200-day MA of 65.31, indicating a bullish trend. The MACD of 2.47 indicates Positive momentum. The RSI at 57.03 is Neutral, neither overbought nor oversold. The STOCH value of 37.00 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
GIL	81 Outperform	11.78B	18.03	27.52%	1.57%	7.09%	32.92%
ATZ	80 Outperform	$8.20B	41.50	23.27%	―	22.57%	197.68%
PET	72 Outperform	2.46B	26.67	166.31%	1.31%	5.18%	17.66%
GOOS	66 Neutral	1.82B	38.11	10.89%	―	2.45%	-17.73%
RET	60 Neutral	106.34M	131.90	4.10%	―	-3.57%	-95.88%
ROOT	59 Neutral	135.47M	-4.36	-20.96%	―	4.47%	-3217.53%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.