How Strong U.S. Sales and Digital Expansion At Aritzia (TSX:ATZ) Have Changed Its Investment Story

• Aritzia Inc. reported strong second-quarter fiscal 2026 results on October 9, 2025, with net revenue rising to CA$812.05 million and net income reaching CA$66.3 million, and raised its full-year revenue outlook to CA$3.3 billion to CA$3.35 billion, anticipating continued growth led by robust U.S. performance, digital channels, and new boutique openings.
• Operational changes such as relocating U.S. fulfillment and launching an international e-commerce platform contributed to margin improvement and mitigated tariff impacts, highlighting Aritzia's ability to adapt in a shifting retail landscape.
• We'll examine how Aritzia's robust U.S. sales and digital gains influence its investment narrative and future revenue growth outlook.

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Aritzia Investment Narrative Recap

To be an Aritzia shareholder, you need to believe in the company's ability to drive consistent growth by expanding its footprint in the United States, growing digital sales, and opening new boutiques. The latest results reinforce that U.S. sales and e-commerce are powering growth, but also signal that U.S. tariffs remain the most important short-term risk. The strong digital and retail gains offset some of this risk, but exposure to shifting tariff policies will continue to matter.

Among recent company announcements, the raised revenue outlook for fiscal 2026 stands out, reflecting management’s confidence in double-digit comparable sales growth and new boutique openings. This upgrade is anchored by continued strength in U.S. markets, which management says is driving both quarter-to-date momentum and long-term expectations for the rest of the year. In contrast, investors should be aware that ongoing cost pressures from tariffs could impact Aritzia’s margins, especially as expansion accelerates...

Read the full narrative on Aritzia (it's free!)

Aritzia's narrative projects CA$4.3 billion revenue and CA$534.0 million earnings by 2028. This requires 13.8% yearly revenue growth and a CA$299.7 million earnings increase from CA$234.3 million today.

Uncover how Aritzia's forecasts yield a CA$95.27 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community estimate Aritzia’s fair value between CA$57.92 and CA$174.44. Views differ widely, while the current analyst narrative highlights U.S. growth as a major revenue driver for the company’s future results.

Explore 8 other fair value estimates on Aritzia - why the stock might be worth over 2x more than the current price!

Build Your Own Aritzia Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Aritzia research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Aritzia research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Aritzia's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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