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Stock: Aritzia (TSX: ATZ)

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Aritzia has quietly become one of Canada’s strongest retail growth stories, delivering explosive earnings growth, expanding aggressively in the U.S., and earning strong conviction from analysts. While the stock recently pulled back, the long-term fundamentals continue to strengthen — making this one of the biggest “missed opportunities” for many investors in 2025.

What Happened This Week? (Key Developments)

  • 📉 Short-term pullback: Shares dipped ~1% this week after a strong multi-month rally, offering a brief consolidation.

  • 💪 Momentum intact: ATZ remains up over 80% year-over-year, massively outperforming both peers and the broader market.

  • 🧠 Analyst confidence rising: Earnings estimates were revised upward again, reflecting stronger margins and accelerating U.S. demand.

  • 🇺🇸 U.S. expansion continues: Aritzia’s U.S. growth remains the primary earnings driver, with higher-margin retail and e-commerce sales.

📊 Key Stock Metrics (At a Glance)

Metric

Value

💲 Stock Price

$124.32

📅 Weekly Move

-0.72%

🏢 Market Cap

$9.8B

📈 P/E Ratio

42.4

🔮 Forward P/E

31.2

📊 52-Week Range

$36.51 – $139.59

📆 YTD Return

+5.9%

💰 Dividend Yield

None

Momentum Score: ★★★★★ (95/100)
Growth Score: ★★★★★ (100/100)

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🧠 Analyst Insights & Ratings

Analysts remain extremely bullish on Aritzia’s long-term outlook.

🟢 Consensus Rating: STRONG BUY ⭐⭐⭐⭐⭐

Rating Breakdown

Analysts

🟢 Strong Buy

10

🟢 Buy

3

🟡 Hold

1

🔴 Sell

0

🎯 Average Target Price: $150.54
📈 Upside Potential: +21%
📊 High Target: $168

Analysts cite earnings acceleration, brand strength, and U.S. store economics as key reasons for continued upside.

📰 Recent News Highlights

  • 🧵 Aritzia posts triple-digit EPS growth as margins recover and U.S. demand accelerates

  • 🇺🇸 U.S. retail expansion drives revenue surge, outperforming apparel peers

  • 📊 Analysts raise earnings forecasts following stronger-than-expected operating leverage

🚀 Growth Indicators to Watch

Growth Metric

Forecast

📈 Sales Growth (Next Year)

+15.8%

💵 EPS Growth (Next Year)

+27.8%

🔁 5-Year EPS Growth Est.

+26.3% annually

🔥 EPS growth this year: +57%
🔥 5-year total return: +358%

This is elite growth territory, especially for a retail brand operating at scale.

🏆 Why Aritzia Continues to Win

Powerful brand with loyal customers
Strong pricing power and margins
Rapid U.S. expansion with high ROI stores
Best-in-class growth metrics among apparel peers
Fortress balance sheet and rising profitability

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Bottom Line

Aritzia has proven it’s not just a fashion brand — it’s a compounding growth machine. While the stock isn’t cheap on a trailing basis, forward earnings growth justifies the valuation, and long-term investors continue to be rewarded.

📌 This may go down as one of the most painful “stocks not bought” of 2025.

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