Aritzia Inc. (ATZ:CA) (ATZAF)
BMO Capital Markets raised its 12 month target price to C$163 from $160 per share, citing encouraging early-2026 sales data that points to accelerating momentum across digital and physical channels. The firm highlighted strength in web and app performance, suggesting continued gains in direct-to-consumer penetration, improved conversion rates, and effective product curation. At the same time, U.S. brick-and-mortar locations delivered solid comparable sales growth, reinforcing confidence that Aritzia’s store rollout strategy south of the border is translating into sustained brand traction and market share expansion.
BMO’s modest upward revision reflects growing conviction in Aritzia’s multi-channel execution and its long-term U.S. growth runway, which remains a key driver of the investment thesis. The U.S. market represents the company’s largest expansion opportunity, supported by disciplined real estate selection, strong productivity per square foot, and continued brand resonance with a younger, affluent demographic. The firm likely also sees operating leverage potential as scale improves in logistics, marketing efficiency, and inventory management.
Overall, the valuation increase underscores confidence that Aritzia is successfully navigating macro volatility while maintaining premium brand positioning, pricing power, and margin discipline—key factors that could support continued earnings growth through fiscal 2026.
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