TD Securities Downgrades Aritzia Inc. (ATZ:TSX) to a “Hold” rating on Earnings Release

Aritzia Canadian Analyst Ratings for Monday January 29th

Analysts Coverage Change:

TD Securities (Rank#34) Downgrades Aritzia Inc. to a “Hold” rating with a target price of $32.

CIBC World Markets (Rank#31) maintains a “Hold” rating for Aritzia Inc. and lowers the target price to $44.

Aritzia Inc Stock Forecast:

Based on the analysis and forecasts of 11 analysts, the average target price for Aritzia Inc stock over the next 12 months is CAD 52.84. This indicates a positive outlook for the company’s stock performance as it suggests potential growth in the coming year. The average analyst rating for Aritzia Inc is reported as Buy, which further reinforces the positive sentiment surrounding the stock.

Stock Target Advisor’s assessment of Aritzia Inc. According to their analysis, the sentiment towards the stock is bullish. This conclusion is based on 12 positive signals and 2 negative signals. These signals are indicators used to assess various aspects of a company’s performance, suggesting that there are more positive indicators supporting the stock’s potential.

As of the last closing, Aritzia Inc’s stock price was CAD 33.63. However, it is worth noting that the stock has experienced a decline of -9.48% over the past week, -3.58% over the past month, and -6.53% over the last year. These fluctuations in the stock price could be influenced by a range of factors, such as market conditions, industry trends, or specific company-related developments.

Aritzia Inc. Earnings Release

Aritzia Inc. reported a decrease in net income for the first quarter, with $17.5 million compared to $33.3 million in the previous year. However, the Vancouver-based retailer saw a growth in net revenue, reaching $462.7 million, a 13.4% increase from the same quarter last year.

The company attributed its lower gross profit margin to higher product-related costs due to inflationary pressures, temporary warehousing costs related to inventory management, and other challenges. These factors were partially offset by lower expedited freight costs.

The net income per diluted share declined from 29 cents to 15 cents compared to the previous year.

Aritzia Inc. experienced a 13.8% increase in retail net revenue, reaching $327.6 million. The e-commerce net revenue also grew by 12.5% and accounted for over 29% of the overall net revenue for the quarter.

Notably, the company observed a significant increase in net revenue from the U.S., which rose by 21.8%. The U.S. market accounted for over 54% of the overall net revenue during the quarter.

These financial results reflect Aritzia Inc.’s performance for the first quarter, highlighting the impact of various factors on its net income, revenue growth, and the significant contribution of the U.S. market to its overall financials.

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