Review of Aritzia Inc.

MAY 22, 2025 - In our last report update, we felt if ATZ could resume its growth trajectory, the company could experience a positive valuation multiple re-rate, and that scenario has played out. ATZ reported solid operating results in the most recent quarter, with encouraging comparable sales and topline growth, disciplined cost and inventory control. ATZ’s business momentum is solid. ATZ’s growth story and financial targets of an annualized growth in sales of 15%-17% on average until FY2027 are certainly achievable given the execution. That being said, the tariff uncertainty, which could cause consumers to pull back on discretionary items, is a potential headwind for ATZ. Management gave conservative guidance with a wide range of outcomes for the full year because of this. With the recent results, we are comfortable with an upgrade; however, due to uncertainty caused by the trade war, we are maintaining our rating at “A-”.