Aritzia (TSX:ATZ) has been one of many best-performing shares on the TSX prior to now couple of years. In 2024, this inventory rose 97%. In 2025, Aritzia inventory soared 118%! Its inventory is up 426% prior to now 5 years.
Little doubt, this firm has been an unbelievable performer for shareholders. Nevertheless, it hasn’t been with out volatility. Between 2022 and 2023, the corporate had a 60% drawdown because it labored by way of extra stock, elevated capital bills, and weakened margins. It recovered all these losses after which some in 2024.
Why I remorse not shopping for Aritzia inventory throughout drawdowns
In March 2025, the inventory dropped as a lot as 42% after the Trump administration introduced sweeping tariffs, together with towards Canada. Buyers frightened that this may have an outsized affect on Aritzia’s suppliers and its fledgling U.S. enterprise.
Luckily, the corporate managed each the 2022/2023 challenges and the 2025 tariff considerations with distinctive diligence. Not solely did the corporate survive these conditions, but it surely has discovered a technique to come out on high each instances.
If I had purchased at its 2023 low on November 3, I might be up 458% right this moment. If I had purchased Aritzia inventory at its April thirteenth low in 2025, I might be up 207%! Shopping for this inventory when the market hates it has turned out to be a wonderful resolution each time it has dropped.
Why is Aritzia inventory charging increased?
So, traders have to ask what has propelled Aritzia to such vital good points lately. It begins with its vital enlargement into america. Aritzia has established a number of necessary flagship shops in key markets. Likewise, its U.S. retailer rely now exceeds its Canada footprint with 71 shops versus 68.
In its most up-to-date third quarter of fiscal 2026, Aritzia delivered distinctive outcomes. Its model of “on a regular basis luxurious” clothes is resonating with customers. A current app launch is seeing traction even internationally, the place the corporate has completed little or no work to increase its enchantment.
For the quarter, internet revenues rose 43% to $1.04 billion. E-commerce made 38% of these gross sales with a 58% gross sales improve. Adjusted earnings earlier than curiosity, tax, depreciation, and amortization (EBITDA) rose 52% to $207 million. Adjusted EBITDA margin elevated 120 foundation factors to twenty%!
The corporate is producing appreciable money each quarter. Its stability sheet is sitting with $620 million in money. Aritzia has ample firepower to proceed to increase its retailer rely throughout the U.S. Whereas it solely has 71 boutiques right this moment, it may simply develop that to 200 over the following a number of years.
Administration continues to focus on 12-15 new boutiques every year, but it surely may afford to speed up that enlargement tempo. That is all earlier than calculating potential worldwide enlargement into the equation. That would open one other substantial market that has hardly been touched but.
The Silly takeaway
Now, all these progress expectations come at a value. Aritzia is buying and selling close to its highest valuation prior to now 5 years. The most effective instances to purchase this inventory have been so as to add it on dips. Nevertheless, if it continues its robust execution, there will not be main dips for a while.
Whereas my largest remorse wasn’t shopping for Aritzia inventory on the current downturns, I received’t be making that mistake once more. Nice firms with robust progress forward (like Aritzia) don’t come alongside usually. Shopping for and holding a top quality worth creator like this looks as if a fantastic long-term technique.
