Aritzia Inc: Jefferies Raises Target on Strong Q2 Results

Aritzia Inc (ATZ:CA)  (ATZAF)

Jefferies raised its 12 month price target to C$92 from C$87 and reiterated a Buy rating following Aritzia’s strong fiscal Q2 2025 results, which exceeded analyst expectations on both revenue and earnings. The upscale fashion retailer reported robust comparable sales growth, particularly in the U.S. market, where the brand continues to expand its footprint and digital reach.

Jefferies highlighted Aritzia’s margin recovery driven by improved inventory management, lower markdown activity, and strong full-price sell-through rates. The firm also noted that management’s focus on long-term growth investments, such as new boutique openings and enhancements to e-commerce infrastructure, is beginning to yield results, supporting sustained top-line momentum.

While near-term pressures such as higher input costs and foreign exchange headwinds remain, analysts believe Aritzia’s brand strength, loyal customer base, and operational discipline position it well to navigate macroeconomic challenges. Jefferies’ upward revision reflects greater confidence in double-digit EPS growth potential and continued market share gains in North America’s premium apparel segment.