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Aritzia
(TSX:ATZ)
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Rating:76Outperform
Price Target:
C$138.00
▲(5.40% Upside)
Action:Reiterated
Date:10/10/26
The score is driven primarily by strong financial performance (expanded margins and improved cash generation) and a very upbeat earnings call with raised full-year guidance and continued profitability momentum. Offsetting factors are a neutral-to-soft technical setup (below key longer-term moving averages with negative MACD) and a middling valuation (P/E ~28.5 with no dividend yield provided).
Positive Factors
Sustained Margin Expansion
Repeated margin expansion indicates that Aritzia is converting growth into stronger earnings rather than relying only on higher sales volumes. Improved operating leverage, pricing, and cost discipline can support durable profitability as the company continues expanding its retail and digital footprint.
Negative Factors
Growth Normalization
The expected slowdown shows that exceptional recent growth will become harder to sustain as Aritzia laps the mobile app launch and prior periods of unusually strong performance. Even with healthy expansion, tougher comparisons may moderate reported momentum and raise execution demands.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Margin Expansion
Repeated margin expansion indicates that Aritzia is converting growth into stronger earnings rather than relying only on higher sales volumes. Improved operating leverage, pricing, and cost discipline can support durable profitability as the company continues expanding its retail and digital footprint.
Read all positive factors
Aritzia (ATZ) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$17.35B
Dividend YieldN/A
Average Volume (3M)782.18K
Price to Earnings (P/E)29.7
Beta (1Y)1.63
Revenue Growth40.28%
EPS Growth108.07%
CountryCA
Employees8,800
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)5.16
Shares Outstanding94,889,435
10 Day Avg. Volume843,945
30 Day Avg. Volume782,178
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)10.21
Price to Sales (P/S)3.75
P/FCF Ratio25.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$182.09Price Target Upside39.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)5.26
Revenue Forecast (FY)C$4.87B
Aritzia Business Overview & Revenue Model
Company Description
Aritzia Inc., a Canadian firm based in Vancouver, specializes in creating and selling a broad selection of women's clothing and fashion accessories across North America. The company's comprehensive product range features diverse apparel, including...
How the Company Makes Money
Aritzia makes money primarily by selling women’s apparel and accessories directly to consumers through two main channels: (1) retail boutiques (physical stores) and (2) e-commerce (online sales). Revenue is generated when customers purchase mercha...
Aritzia Earnings Call Summary
Earnings Call Date:Oct 08, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 13, 2027
Earnings Call Sentiment Positive
The call was strongly positive, characterized by exceptional revenue and comparable sales growth, record second-quarter profitability, broad-based demand, strong digital and boutique performance, raised full-year revenue and margin guidance, a healthy balance sheet and continued investment in growth. The main challenges were explicitly identified as difficult year-over-year comparisons, temporarily higher Q3 SG&A from infrastructure investments, back-half gross-margin moderation factors and tariff-related pressure.Positive Updates
Exceptional Second-Quarter Revenue and Comparable Sales Growth
Net revenue increased 44% to $1.17 billion, while comparable sales grew 35%. Results reflected broad-based strength across channels, geographies and product categories.
Negative Updates
Expected Revenue Growth Moderation from Difficult Comparisons
The company expects Q3 revenue growth of 23% to 27%, compared with 44% growth in Q2. Management said the outlook reflects lapping the mobile app launch on October 27 of last year and beginning to lap two years of exceptional growth in November. Implied Q4 growth is in the high teens to low 20s.
Read all updates
Q2-2027 Updates
Positive
Negative
Exceptional Second-Quarter Revenue and Comparable Sales Growth
Net revenue increased 44% to $1.17 billion, while comparable sales grew 35%. Results reflected broad-based strength across channels, geographies and product categories.
Read all positive updates
Company Guidance
For the third quarter of fiscal 2027, Aritzia expects net revenue of $1.275 billion to $1.325 billion, representing growth of 23% to 27% from last year, comparable sales growth in the high teens, gross profit margin to increase 100 to 150 basis points, and SG&A as a percentage of net revenue to increase 50 to 100 basis points; implied Q4 revenue growth is the same high teens to low 20s, with gross margin expansion expected to be relatively consistent in Q4. For the full year, it expects net revenue of $4.78 billion to $4.88 billion, growth of 29% to 32% from fiscal 2026, comparable sales growth in the low 20s, 12 to 13 new boutique openings and 4 to 5 repositions, adjusted gross profit margin to increase 225 to 275 basis points, SG&A as a percentage of net revenue to be flat to down 50 basis points compared to fiscal 2026, and adjusted EBITDA as a percentage of net revenue to be approximately 20%, assuming U.S. global tariffs of 10% to 12.5%; guidance excludes any benefit from tariff refunds.Aritzia Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.35B | 3.70B | 2.74B | 2.33B | 2.20B | 1.49B |
| Gross Profit | 2.02B | 1.63B | 1.18B | 898.98M | 913.99M | 654.95M |
| EBITDA | 1.03B | 787.61M | 525.91M | 331.74M | 428.97M | 357.43M |
| Net Income | 592.11M | 381.85M | 207.79M | 78.78M | 187.59M | 156.92M |
Balance Sheet | ||||||
| Total Assets | 3.61B | 3.14B | 2.46B | 1.95B | 1.84B | 1.42B |
| Cash, Cash Equivalents and Short-Term Investments | 528.14M | 592.13M | 285.63M | 163.28M | 86.51M | 265.25M |
| Total Debt | 1.18B | 995.76M | 919.22M | 805.89M | 772.01M | 503.79M |
| Total Liabilities | 2.12B | 1.77B | 1.36B | 1.14B | 1.15B | 893.77M |
| Stockholders Equity | 1.49B | 1.36B | 1.09B | 807.50M | 685.79M | 530.81M |
Cash Flow | ||||||
| Free Cash Flow | 665.60M | 545.11M | 199.61M | 184.53M | -47.85M | 272.93M |
| Operating Cash Flow | 961.77M | 822.77M | 455.64M | 358.21M | 74.91M | 338.35M |
| Investing Cash Flow | -339.82M | -285.21M | -277.12M | -182.96M | -131.21M | -99.58M |
| Financing Cash Flow | -444.24M | -226.90M | -60.37M | -98.06M | -122.54M | -124.09M |
Aritzia Technical Analysis
Positive
130.93
Price Trends
132.21
Positive
141.03
Positive
134.20
Positive
Market Momentum
7.40
Negative
64.93
Neutral
61.86
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 130.93 is below the 20-day moving average (MA) of 140.86, below the 50-day MA of 132.21, and below the 200-day MA of 134.20, indicating a bullish trend. The MACD of 7.40 indicates Negative momentum. The RSI at 64.93 is Neutral, neither overbought nor oversold. The STOCH value of 61.86 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$17.35B | 29.71 | 42.25% | ― | 40.28% | 108.07% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | C$106.29M | -215.69 | -0.09% | 9.48% | 0.89% | -127.61% | |
58 Neutral | C$160.32M | 232.39 | 0.59% | ― | 3.94% | ― | |
54 Neutral | C$1.04B | 18.44 | 10.37% | ― | 12.26% | 20.96% |
* Consumer Cyclical Sector Average
TSE:ATZ
Aritzia
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Aritzia Corporate Events
Business Operations and StrategyFinancial Disclosures
Aritzia Delivers Surging Sales and Record Margins in Second Quarter Fiscal 2027
Positive
Oct 8, 2026
Aritzia posted strong second-quarter fiscal 2027 results, with net revenue surging 44.1% to $1.17 billion on the back of 34.5% comparable sales growth, reflecting broad-based demand across geographies, channels and product categories. The U.S. led...
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.