Review of Aritzia Inc

AUG 08, 2023 - ATZ’s share price has been under tremendous pressure after the most recent earning release due to a significant slowdown in revenue growth, as well as a decline in profitability due to inefficient cost control and inventory markdown. We understand that the market is concerned with the long-term growth prospects of fashion companies, as many companies in the past have seen significant potential quickly come and go. Although ATZ is trading at a cheap valuation compared to historical averages, we think the company is a hold for now. We are aiming conservatively and downgrading our rating by one notch to “B+”, while at the same time continuing to remain bullish on the long-term prospects of the company.