A growth stock looks like a solid buy when the business is getting stronger, not just louder. That usually means rising sales, improving margins, a bigger market opportunity, and enough brand power that customers keep coming back. The best ones also have room to keep expanding for years, so even a $1,000 investment can still do meaningful work over time. Aritzia (TSX: ATZ) fits that mould better than most Canadian growth names right now.
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ATZ
Aritzia stock is a Canadian fashion retailer that has turned itself into much more than a mall brand. It sells what it calls “Everyday Luxury,” with a mix of in-house labels, strong digital execution, and a growing boutique footprint across North America. That gives the company a brand identity that feels more premium than a typical apparel chain, while still leaving lots of room to grow in the United States.
Over the last year, the story has been all about momentum. Aritzia stock reported strong growth in each quarter of fiscal 2026 so far, driven by new boutique openings, digital initiatives, and strong consumer demand. In the second quarter, management said it planned 13 new boutiques in fiscal 2026, with all but one in the United States. In the third quarter, it said it still saw room to keep expanding south of the border. That is a big reason investors have stayed excited.
The valuation is not cheap, and that is the catch. Aritzia stock holds a market cap of about $13.1 billion, a trailing price-to-earnings (P/E) ratio of nearly 38.6. So, no, this is not a bargain-bin stock. Investors are already paying up for the growth story. But strong growth stocks often look expensive for a reason, and in Aritzia’s case, the numbers are still backing up the optimism.
Into earnings
That excitement is not just market fluff. In fiscal third quarter 2026, Aritzia delivered record net revenue of $1.04 billion, up 42.8%, while comparable sales jumped 34.3%. U.S. net revenue surged 53.8% to $621.1 million, which means the U.S. now makes up nearly 60% of total revenue. That is a huge signal that the company’s biggest growth engine is still working.
The earnings side looks just as impressive. Third-quarter gross profit margin improved to 46%, up 30 basis points, while selling, general and administrative expenses as a percentage of revenue fell 170 basis points to 27.9%. The company also generated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins that show the business is scaling better as sales rise. In short, Aritzia stock is not just growing fast. It is getting more efficient while doing it. That is exactly what you want from a long-term growth stock.
The future outlook is what makes it especially interesting for a $1,000 buy right now. Aritzia stock still has a long runway in the U.S., digital sales remain strong, and management keeps opening new boutiques while driving higher productivity from existing ones. The risk is obvious: fashion is never risk-free, and if consumer demand softens, the stock could wobble. But if the brand keeps resonating and U.S. growth stays this strong, Aritzia stock still looks like one of the smartest Canadian growth stocks to own for the long haul.
Bottom line
If I had $1,000 to put into one Canadian growth stock right now, Aritzia stock would make a very strong case. It has a premium brand, serious U.S. momentum, strong earnings growth, and a business model that still looks early in its bigger expansion story. It is not cheap, but it does look built for much more than a short-term run.
