TSE:ATZ

Aritzia Inc. (ATZ.TO)

157.75
-3.25 (2.02%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
395 watching
0
Investor Insights
star iconJun 5, 2026, 12:00 am

This summary was created by AI, based on 8 opinions in the last 12 months.

Aritzia Inc. (ATZ) has emerged as a notable player in the retail sector, particularly with its expansion into the U.S. market, which has only seen half of its potential tapped so far. Analysts highlight impressive growth metrics, including a significant 41% increase in U.S. revenue and the recovery of margins and supply chains. Despite facing challenges in the consumer discretionary space and competition, Aritzia's vertical integration enhances control over design and pricing, offering a competitive edge. Experts recommend monitoring the stock for potential pullbacks after its substantial rise, pointing to the 'Coolness Factor' as critical for maintaining market interest. Overall, analysts view Aritzia as fundamentally strong with a positive growth outlook, albeit with caution towards short-term valuation concerns.

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Consensus
Buy
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Valuation
Overvalued
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LULU
BUY

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Founder led. Strong eCommerce and US market growth. Expanding into menswear. Premium valuation justified by growth. Unlock Premium - Try 5i Free

BUY

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.  81% increase in US revenues. Margin pressure expected for 2H22. Strong quarter results. Buyback offers share price support. Unlock Premium - Try 5i Free

TOP PICK
Bought it for its growth. They have over 100 stores, a third of which in the US. The unit growth potential is very strong with lots of room to grow. Are opening 8-10 stores yearly. They're vertically integrated and attract a wide demographic, from ages 15-55. Share are trading under 20x forward PE with the margins depressed during this pullback. The company hasn't seen consumers spend less due to interest rates and inflation, but the market fears this could happen later. (Analysts’ price target is $57.27)
Unspecified
Growth is high and very consistent. It is one of the top names in the sector. The headwind is consumer and discretionary income.
DON'T BUY
Is watching it. Problem is that he doesn't like retail, which is an expensive business. But ATZ has some of the highest revenues per square footage and have been successful for a long time. Is confident in the new CEO. If share price fell to $15-19, then maybe. A quality company, but still doesn't make the cut for him.
TOP PICK

Is own 40% from peak. Revenue should continue to grow in the mid-teens purely as store count rises. They have a strong social media prices. It sells at 18x February 2024 earnings. Has solid growth opportunities. (Analysts’ price target is $67.45)

TOP PICK
Customers overlap with LULU. ATZ sells women's fashions but is starting to move into men's. They've had great success expanding into the US with 40 locations which will reach 100 in markets like Atlanta. Lots of runway. A US store generates $16 million revenue and this has been improving along with e-commerce sales. Boasts healthy gross margins and strong balance sheet. Top management. It will trades at 19x 2023 earnings which is not expensive. (Analysts’ price target is $67.45)
PAST TOP PICK
(A Top Pick May 18/21, Up 31%) A true Canadian growth stock with a lot of runway ahead. She took some profits recently but is buying it at current levels. The US accounts for nearly half their earnings. Their e-commerce is 40% of sales; they thrived during the pandemic. Many price points for consumers and just launched a swimwear lines and will get into menswear--both spell further growth.
PAST TOP PICK
(A Top Pick May 17/21, Up 28%) It should be higher and has had to fight against the trend from other retailers. Its recent results were great. It has great potential - expect 20% growth. Interesting to note that it has three stores (different labels) in a Vancouver mall. 23/24X earnings. Owns a good size position - otherwise would buy more.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They reported a very strong quarter. All metrics showed great growth. Revenues rose 66%, net income up 113% and EBITDA rose 88%. Revenues beat by 11% and EPS was 40% better than expected. Numbers look great. Unlock Premium - Try 5i Free

BUY
A big holding for him, though he sold some in the high-$50s. Great to hold 5-10 years as they expand across North America. Fine to buy here, but wait for their earnings call to see how inflation effects it.
BUY ON WEAKNESS
She adds when stock goes below $45. Small cap, attractive long-term growth. Just starting to expand in US. Continues to invest in its online platform. Demographic profile is quite wide. Diversifying.
BUY ON WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company saw downgrades due to the US retail sector performance. ATZ generates two thirds of their revenue in the US. The weakness is not company specific. Long-term prospects are good, although there may be some volatility in the near term. Unlock Premium - Try 5i Free

PARTIAL BUY
It's one of his largest holdings, and he's made a lot of money. He sold a few shares last quarter. American consumers are as hungry for ATZ clothes as Canadians. This is Lululemon 10 years ago. Lots of growth. But we're in a volatile market overall. Beware.
BUY
It continues to rise higher, he says with some regret. A few years ago, he felt it was too expensive. They have a cult-like following among customers. He wishes he owned this. This will continue to do well.
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