Canadian clothing retail company Aritzia (TSX:ATZ) has been one of the top wealth-creating TSX stocks. Its strong fundamentals, solid execution, and ability to consistently report solid financial results, led by an extensive portfolio of exclusive brands, have helped the company deliver above-average returns over the past several years.
Aritzia stock has nearly doubled in 3 years
Aritzia’s high-quality products, geographic expansion through new boutique openings, and efficient inventory management helped the company to grow its revenue and earnings at a solid double-digit rate. Moreover, its investment in e-commerce infrastructure and brand marketing has broadened its customer base and strengthened its competitive edge. All of these have helped push Aritzia’s stock higher.
Since fiscal 2020, Aritzia’s net revenue has grown at a compound annual growth rate (CAGR) of 23%. Its e-commerce operations have been a strong contributor, with online revenue climbing at a CAGR of 33% over the same period. With higher sales volumes providing leverage, the company has also benefited from disciplined cost management, reduced warehousing expenses, and fewer markdowns. Together, these efficiencies have translated into significant earnings growth, with the bottom line rising at a CAGR of 19% over the past five years.
Aritzia’s solid fundamentals have been mirrored in the stock’s trajectory. Over the past year, Aritzia shares have gained more than 80%. Moreover, the stock has grown at a CAGR of 25.7% in the last three years and nearly doubled in value.
The uptrend in Aritzia stock will likely sustain
Looking ahead, Aritzia appears well-positioned to build on this momentum in its business, which will likely push this Canadian stock higher. By consistently rolling out fresh collections, managing its inventory more effectively, and expanding its brand presence, this multi-channel retailer is likely to sustain double-digit growth in revenue and earnings in the coming years.
A key growth catalyst for Aritzia is its U.S. expansion. The fashion retailer opened 12 new boutiques and relocated three others in fiscal 2025. This has helped the company to deliver a 31% year-over-year increase in U.S. net revenue. This momentum is expected to accelerate, with a healthy pipeline of boutique openings lined up for fiscal 2026 and a plan to add eight to 10 new U.S. locations annually through fiscal 2027. These new stores boost retail sales, acquire new clients, enhance Aritzia’s brand visibility, and act as a catalyst for stronger e-commerce demand.
The digital side of the business is also entering a new phase of growth. Aritzia is focusing on adding more convenience for shoppers and has been focusing on a more aggressive digital marketing strategy to accelerate growth. Its high-quality assortment and focus on full-funnel marketing are likely to boost e-commerce traffic in the U.S. and Canada.
Aritzia’s management expects the company’s top line to grow at a CAGR 15% to 17% through fiscal 2027. With rising sales, improved efficiencies, and strategic sourcing, profitability is also poised to expand meaningfully, driving its share price higher.
Here’s how much Aritzia stock could rise
With Aritzia’s top and bottom line expected to grow at a solid pace, its share price could trend higher. It has grown at a CAGR of 25.7% in the last three years. If the stock can maintain this momentum, its price could climb to around $165.62 within the next three years.
Even under a more conservative scenario, where growth moderates to about 20% annually, the stock would still have plenty of room to run. At that pace, Aritzia shares could reach roughly $144.10, representing a potential 73% gain from its closing price of $83.39 on September 3.
