Aritzia (TSX:ATZ) has become a household name in Canadian fashion, and increasingly so in the United States. Known for its sleek in-house brands and carefully curated store design, the retailer has built a loyal customer base that spans demographics and borders. Lately, the stock has been trading below $70, and for many long-term investors, that has sparked the question: is now the time to buy?
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A trendy choice
Before diving into the numbers, it’s worth understanding how Aritzia stock got here. The company has expanded steadily over the past few years, particularly into the U.S. market. This expansion hasn’t just been about opening new boutiques; it’s been about introducing the Aritzia brand to a wider audience while maintaining a premium image. With the launch of flagship stores in key U.S. cities and continued investment in its digital storefront, Aritzia is not just a Canadian success story anymore.
As of writing, Aritzia stock is trading at approximately $68. It has been hovering below the $70 mark for a while now, even after a strong earnings report that sent shares higher. That creates an interesting setup for investors who are willing to look past short-term fluctuations and focus on the fundamentals.
Those earnings
In its most recent earnings report, covering the fourth quarter and full year of fiscal 2025, Aritzia stock once again impressed. The company reported fourth-quarter (Q4) net revenue of $895.1 million, up 31.3% year over year. Comparable sales rose 26%, driven by both strong retail traffic and a major boost from e-commerce. Online sales alone grew by 42.4% to $378.1 million, which now accounts for more than 42% of the company’s total revenue.
The real star of the show, though, was profitability. Gross profit margin expanded to 42.5%, up from 38.3% in the same period last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $160.9 million, more than double the previous year’s number, with a margin of 18%. Adjusted net income jumped by 156.5% to $98 million, or $0.83 per diluted share. The strong performance reflects better inventory management, fewer markdowns, and the successful scaling of operations in the U.S.
More to come
Aritzia stock has also been smart about where and how it’s expanding. Over the last year, it opened 12 new boutiques and repositioned three others, including a Fifth Avenue flagship location in New York City. These aren’t just regular retail spaces; they’re designed as high-end experiences that reflect the Aritzia brand and help it stand out in a crowded market.
Looking ahead, management remains optimistic. For the upcoming quarter, Aritzia stock expects net revenue in the range of $830 million to $850 million, which would represent growth of 22% to 25%. That’s based on strong quarter-to-date trends and a healthy inventory position. For the full year, the company expects continued double-digit growth, driven by store openings, rising brand awareness, and further gains in e-commerce.
Despite all this good news, the stock is still trading at a valuation that seems modest for a growth company. That could be due to some broader market caution around retail, as inflation and interest rates remain key concerns. The fashion industry is also competitive, and investors may be watching for signs of any slowdown in consumer spending. However, Aritzia stock has proven it can manage through these kinds of pressures with resilience.
Bottom line
If you’re a long-term investor looking for a high-quality business with room to grow, Aritzia stock could be a compelling choice. The stock has already delivered solid returns for early backers and continues to reinvest earnings into high-return growth opportunities. While there are risks, Aritzia’s track record so far shows that it’s up for the challenge.
