Aritzia (TSE:ATZ) Issues Quarterly Earnings Results

Aritzia (TSE:ATZ) announced its quarterly earnings results on Thursday. The company reported C$1.10 EPS for the quarter, FiscalAI reports. The company had revenue of C$1.04 billion during the quarter. Aritzia had a return on equity of 15.24% and a net margin of 5.24%.

Here are the key takeaways from Aritzia’s conference call:

• Aritzia delivered a record Q3 with CAD 1.04 billion in net revenue (+43% YoY), 34% comparable sales growth, and raised full-year revenue and Adjusted EBITDA guidance (FY revenue CAD 3.615–3.64B; Adjusted EBITDA margin 16.5%–17%).
• U.S. expansion is a major growth driver—U.S. net revenue rose 54%, the company has just 72 U.S. boutiques today and plans 12–14 new openings (plus 4–5 repositions) next year with boutiques tracking to pay back in under a year on average.
• The mobile app launch far exceeded expectations (about 1.4 million downloads), boosting e-commerce (e?commerce +58%) and international e?comm (sales more than doubled YoY), with further app and omni features planned to drive conversion.
• Tariff increases and the elimination of the de?minimis exemption created roughly 400–410 basis points of gross margin pressure (two?thirds tariffs, one?third de?minimis) and the company expects similar headwinds near?term, plus initial costs from distribution center changes as they ramp.

Aritzia Stock Performance

Aritzia stock opened at C$131.47 on Friday. Aritzia has a 12-month low of C$36.51 and a 12-month high of C$135.00. The company has a debt-to-equity ratio of 93.51, a current ratio of 1.29 and a quick ratio of 0.19. The company has a market capitalization of C$15.16 billion, a price-to-earnings ratio of 54.78, a price-to-earnings-growth ratio of 1.19 and a beta of 2.01. The firm’s fifty day moving average price is C$110.38 and its 200 day moving average price is C$90.94.

Wall Street Analyst Weigh In

Several research firms have issued reports on ATZ. CIBC boosted their price objective on shares of Aritzia from C$132.00 to C$148.00 in a research note on Friday. Royal Bank Of Canada lifted their target price on shares of Aritzia from C$116.00 to C$150.00 and gave the company an “outperform” rating in a report on Friday. BMO Capital Markets increased their price target on Aritzia from C$133.00 to C$136.00 and gave the company an “outperform” rating in a report on Friday, December 19th. Canaccord Genuity Group raised their price objective on Aritzia from C$135.00 to C$164.00 and gave the company a “buy” rating in a research report on Friday. Finally, Wells Fargo & Company boosted their price objective on Aritzia from C$110.00 to C$120.00 in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Buy” and an average price target of C$135.92.

Trending Headlines about Aritzia

Here are the key news stories impacting Aritzia this week:

• Positive Sentiment: Q3 results showed C$1.10 EPS and C$1.04B in revenue (quarterly profit ~C$138.9M) with US sales growth — the company also released a slide deck and press materials that emphasize US expansion and margin progress. This operational beat and commentary support higher forward expectations. View Press Release
• Positive Sentiment: Canaccord Genuity raised its target to C$164 and reiterated a “buy” — the largest upside among new targets, signaling strong analyst conviction on growth and validating the rally. BayStreet.CA
• Positive Sentiment: TD Securities lifted its target to C$155 and kept a “buy” rating, backing expectations for continued top-line momentum and U.S. opportunity. BayStreet.CA
• Positive Sentiment: Truist increased its target to C$157 (21.8% upside), reflecting improved margin and growth outlook assumptions. BayStreet.CA TickerReport
• Positive Sentiment: RBC raised its target to C$150 and moved to “outperform”, another blue?chip firm increasing estimates after the quarter. BayStreet.CA
• Positive Sentiment: CIBC raised its target to C$148, citing continued sales and margin momentum. BayStreet.CA
• Positive Sentiment: Jefferies published a bullish note forecasting strong price appreciation, adding to the positive analyst sentiment supporting the move. AmericanBankingNews
• Neutral Sentiment: General market mentions and “what to watch” coverage flagged Aritzia as a stock to watch on earnings day; useful for attention but not a direct catalyst. MSN
• Negative Sentiment: Wells Fargo raised its target to C$120, which implies downside vs. the current price — a sign that not all analysts are convinced the rally is fully priced. BayStreet.CA
• Negative Sentiment: Valuation and leverage remain watchpoints: ATZ trades at a high P/E (~54.8) and carries elevated debt-to-equity (~93.5%), which could cap upside if growth slows. MarketBeat

Aritzia Company Profile

Aritzia Inc is an integrated design house of exclusive fashion brands. It designs apparel and accessories for its collection of exclusive brands and sells them under the Aritzia banner. The category of products offered by the firm is blouses, T-shirts, pants, dresses, sweaters, jackets and coats, skirts, shorts, jumpsuits, and accessories. Its geographical segments include Canada and the United States. The company generates the majority of revenue from Retail, followed by eCommerce.