Aritzia (ATZ) — Q2 revenue +44%, outlook raised, stock +20.5% in a day; ~32x trailing P/E

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The short version: a growth quarter that moved the stock 20%

Aritzia (TSX: ATZ), the Vancouver-based women’s fashion house behind its own exclusive labels, had its biggest trading day in years on October 9, 2026. The stock jumped 20.5% to close at CA$146.91, a day after second-quarter results showed net revenue up 44% to C$1.17 billion. The new story is that Aritzia is a U.S. growth company with a Canadian head office: American sales grew 60% and now make up two thirds of the business.

The TSX screener data in our tables runs to the October 8 merge, before the jump, when Aritzia traded at about 32x trailing earnings against a peer average near 23x. The question for a new buyer is simple: after a 20% day, how much of this growth is already in the price? Below we go through the quarter, the raised outlook, and how Aritzia compares with five of the largest TSX retailers — Dollarama, Canadian Tire, Couche-Tard, Loblaw and Pet Valu — on size, returns, valuation and analyst targets.

What happened: Q2 fiscal 2027 results and a raised outlook

On October 8, 2026, after the market close, Aritzia reported its second quarter of fiscal 2027 (the 13 weeks ended August 30, 2026). The headline numbers:

• Net revenue of C$1.17 billion, up 44.1% from C$812 million a year earlier,
• comparable sales up 34.5%, with every channel and both countries growing by double digits,
• U.S. revenue up 60.3% to C$779 million, 66.6% of the total; Canada grew 19.8% to C$390 million,
• digital revenue up 67.7% to C$403 million, helped by the new mobile app and more marketing.

Management raised the full-year outlook to C$4.78 billion to C$4.88 billion of revenue, up from C$4.55 billion to C$4.75 billion, which is growth of 29% to 32% over fiscal 2026. The plan includes 12 to 13 new boutiques, 11 to 12 of them in the United States. Aritzia also hosts an Investor Day on October 27, 2026, where it plans to set out its next growth chapter.

The margin story behind the print

The growth came with much better profitability:

• Adjusted EBITDA nearly doubled (+99.7%) to C$246 million, a record 21.0% of revenue, up 590 basis points.
• Adjusted gross margin rose 490 basis points to 48.7%, from better initial markups, fewer markdowns and leverage on store costs.
• SG&A fell to 29.5% of revenue from 30.8%.
• Adjusted EPS of C$1.31, up from C$0.59, more than double.

There is one caveat. Reported net income of C$201.7 million (C$1.70 per share) includes about C$97 million of U.S. tariff refunds received in the quarter. That is a one-time benefit, and the guidance excludes any further refunds. The adjusted numbers above strip it out, and they still more than doubled. Aritzia also bought back C$125 million of stock in the quarter and another C$80 million between August 31 and October 7, while ending the quarter with C$528 million of cash.

Business overview: Aritzia vs TSX retail peers

Aritzia designs and sells its own clothing brands through about 146 boutiques in Canada and the United States and through its website and app. It does not wholesale; nearly every sale goes through its own stores and digital channels, so comparable sales and store openings drive results.

On the TSX screener, Aritzia sits in the Retail trade sector. There is no other large listed apparel retailer on the TSX, so the peer group is the biggest consumer-facing retailers in the same sector. Dollarama (DOL) is the closest growth-retail comparison. Canadian Tire (CTC.A) is a discretionary retailer exposed to the same Canadian consumer. Couche-Tard (ATD) and Loblaw (L) are the sector giants, and Pet Valu (PET) is a mid-sized specialty chain. George Weston, Metro and Empire were left out to avoid three more grocery names.

Overview table

Company (Ticker)	Price	Market cap	Revenue (LTM)	Net income (LTM)
Aritzia (ATZ)	$123.28	$14.1B	$3.99B	$457M
Dollarama (DOL)	$185.37	$50.2B	$7.88B	$1.37B
Canadian Tire (CTC.A)	$203.00	$9.94B	$16.5B	$679M
Couche-Tard (ATD)	$77.11	$70.8B	$112.1B	$4.42B
Loblaw (L)	$62.22	$71.8B	$64.6B	$2.79B
Pet Valu (PET)	$18.50	$1.24B	$1.19B	$99M
Average (incl. ATZ)	—	$36.3B	$34.4B	$1.64B

Source: TSX screener (October 8, 2026, tsx-2026-10-08.csv) · CAD · LTM = last 12 months. Average includes ATZ; blank cells skipped.

At about C$14 billion of market value before the jump, Aritzia is a mid-sized name: Loblaw and Couche-Tard are roughly five times bigger, while Canadian Tire has four times the revenue but a smaller market value. Aritzia’s C$457 million of net income on C$3.99 billion of sales is a richer margin than the grocers and the convenience-store giant, which is part of why it trades at a higher multiple.

Performance: the best one-year run in the group, before the jump

Performance table

Company (Ticker)	1M	3M	6M	1Y	5Y	10Y
Aritzia (ATZ)	−2.2%	−16.0%	−2.6%	+48.9%	+196%	+613%
Dollarama (DOL)	+5.3%	−0.2%	+5.8%	+3.7%	+237%	+443%
Canadian Tire (CTC.A)	−3.3%	−3.8%	−3.8%	−24.1%	−21.9%	+3.0%
Couche-Tard (ATD)	−6.1%	−16.6%	−2.0%	+5.0%	+60.6%	+139%
Loblaw (L)	−0.4%	−2.1%	−2.3%	+16.0%	+175%	+368%
Pet Valu (PET)	−1.6%	−0.4%	−10.2%	−48.0%	−37.7%	−22.9%
Average (incl. ATZ)	−1.4%	−6.5%	−2.5%	+0.3%	+101%	+257%

Source: TSX screener (October 8, 2026). Average includes ATZ; blank cells skipped. Price change by window.

Even before Friday, Aritzia was up 49% over the last year, by far the best in this group. Dollarama gained about 4%, while Canadian Tire fell 24% and Pet Valu lost almost half its value. The last month had been soft, down about 2%, and three months down 16%, as investors worried growth would slow. The 20.5% jump on October 9 more than erased that pullback.

Over five and ten years, Aritzia (+196% and +613%) and Dollarama (+237% and +443%) are the long-run compounders here, while Canadian Tire and Pet Valu are negative over five years.

Valuation: expensive on multiples, cheap on growth

Valuation table

Company (Ticker)	P/E	Fwd P/E	PEG	P/S	P/B	P/FCF	Price/Cash
Aritzia (ATZ)	32.27	23.95	0.35	3.61	9.94	28.67	31.07
Dollarama (DOL)	37.17	34.64	3.54	6.41	33.79	33.80	105
Canadian Tire (CTC.A)	15.90	13.95	—	0.65	1.77	17.71	6.92
Couche-Tard (ATD)	16.14	16.84	0.61	0.63	3.02	13.86	15.52
Loblaw (L)	26.33	23.27	1.54	1.11	6.56	15.21	71.90
Pet Valu (PET)	12.84	11.22	1.65	1.01	13.66	8.61	51.76
Average (incl. ATZ)	23.44	20.65	1.54	2.24	11.46	19.64	47.01

Source: TSX screener (October 8, 2026). Average includes ATZ; blank cells skipped. Highlighted = lowest (cheapest) positive value per column.

At the pre-earnings price, Aritzia traded at 32.3x trailing earnings and 23.9x forward earnings, both above the group averages of 23.4x and 20.7x. Price to book near 10 is also high. But Aritzia has the lowest PEG ratio in the table, at 0.35, because its trailing earnings per share grew about 92% year over year. That is the core of the bull argument: the multiple looks high only if growth slows sharply.

Two things move these numbers. The 20% jump pushes the multiples up from the screener values. The new quarter’s profits push the trailing P/E down as they roll into the last-twelve-months figures. Dollarama is richer than Aritzia on almost every measure, while Couche-Tard (0.63x sales) and Canadian Tire (1.77x book) are the cheapest names here on sales and book value.

Analyst view: mostly Buy, with targets moving both ways

Analyst table

Company (Ticker)	Rating	Price	Target 1Y	Upside	Analysts
Aritzia (ATZ)	Strong buy	$123.28	$178.63	+44.9%	15
Dollarama (DOL)	Buy	$185.37	$215.13	+16.1%	11
Canadian Tire (CTC.A)	Neutral	$203.00	$204.00	+0.5%	9
Couche-Tard (ATD)	Buy	$77.11	$99.73	+29.3%	12
Loblaw (L)	Buy	$62.22	$71.44	+14.8%	8
Pet Valu (PET)	Buy	$18.50	$24.89	+34.5%	9
Average (incl. ATZ)	—	—	—	+23.4%	—

Rating & price: TSX screener (October 8, 2026). Target 1Y: MarketBeat consensus (TSE listings), pulled 2026-10-10: ATZ C$178.63 (15 analysts, includes Oct 9 post-earnings revisions); DOL C$215.13 (11); CTC.A C$204.00 (9); ATD C$99.73 (12); L C$71.44 (8); PET C$24.89 (9). None under 5 analysts. Upside = target ÷ price − 1.

The screener shows a Strong buy rating for Aritzia. The MarketBeat consensus target is C$178.63 from 15 analysts, about 22% above the C$146.91 close on October 9 (the +44.9% in the table uses the pre-earnings screener price). After the results, on October 9:

• UBS kept Buy and raised its target to C$228 from C$216.
• RBC Capital Markets kept Outperform and raised its target to C$195 from C$191.
• Canaccord Genuity kept Buy and raised its target to C$194 from C$189.
• Ventum Capital Markets kept Neutral and raised its target to C$160 from C$146.
• TD Cowen kept Buy but cut its target to C$175 from C$200, pointing to rising bond yields as a possible headwind for consumer spending.
• Raymond James kept Outperform and a C$175 target.

Among peers, Couche-Tard and Pet Valu show the most implied upside, while Canadian Tire sits right at its consensus target.

Why it matters: from Canadian mall brand to U.S. growth story

The old narrative was Aritzia as a Canadian mall brand, priced on how many boutiques it could add. The new narrative is a U.S. growth company where two thirds of sales are American, digital is growing faster than stores, and margins are rising.

The big question after a huge fiscal 2026 was whether growth would slow. This quarter says no, at least not yet: the raised guidance implies fourth-quarter growth in the high teens to low twenties. For growth investors, the story is margins — faster sales plus cost discipline are turning into much higher profit per share. The Investor Day on October 27 is the next chance for management to put long-term numbers on that.

Bull case

1. Long U.S. runway. Aritzia plans 11 to 12 new U.S. boutiques this year, and U.S. sales are still growing about 60%.
2. Rising margins. Guidance calls for an adjusted EBITDA margin near 20% for the year, up from 17.8%, so each extra dollar of sales brings more profit.
3. Balance sheet and buybacks. Aritzia has C$528 million of cash and no bank debt, and it keeps buying back stock, which supports earnings per share.

Bear case and risks

1. A lot is priced in. After a 20% day and a 49% year, any slowdown in comparable sales could hit the stock hard.
2. Fashion is fickle. Trends change, and a brand that is hot today can cool quickly.
3. Tariffs and the consumer. U.S. tariffs (assumed at 10% to 12.5% in guidance) and a softer consumer are real risks, and the C$97 million tariff refund that lifted this quarter will not repeat.

What to watch

1. Investor Day, October 27, 2026. Any new long-term revenue and margin targets.
2. Third-quarter results. Revenue against the C$1.275 billion to C$1.325 billion guide (growth of 23% to 27%).
3. U.S. comparable sales. Whether growth holds in the high teens or better.
4. Tariff costs and gross margin. The guide assumes 225 to 275 basis points of margin expansion for the year.

Bottom line

Aritzia has earned its rally: revenue up 44%, U.S. sales up 60%, a record margin and a higher full-year outlook. The issue now is price. Before the jump it traded at about 32x trailing earnings against a peer average near 23x, and the stock is now about 19% above that screener price. The lowest PEG ratio in the group says the multiple is fair only if growth stays strong. The next test is the October 27 Investor Day and whether third-quarter growth lands inside the 23% to 27% guide.

Video chapters

• 0:00 Hook — biggest day in years, revenue +44%
• 0:22 Q2 fiscal 2027: revenue, U.S., digital (October 8)
• 0:46 Tariff refund, adjusted EPS & raised outlook
• 1:15 Overview — TSX retail peers
• 1:39 Performance heatmap
• 2:00 Valuation (~32x trailing P/E, lowest PEG)
• 2:30 Analyst ratings & October 9 target moves
• 3:01 Why it matters
• 3:20 Bull case
• 3:38 Bear case
• 3:56 What to watch

Data notes

Table figures are TSX screener values (merge tsx-2026-10-08.csv, 3,581 rows; prices from before the October 8 after-close results; CAD). Aritzia closed at C$146.91 on October 9 (+20.5%), which is not yet reflected in the tables. Peers are the largest same-sector (Retail trade) consumer-facing retailers: Dollarama, Canadian Tire (screener symbol CTC, the Class A shares), Couche-Tard, Loblaw and Pet Valu; George Weston, Metro and Empire were skipped to avoid more grocers. Aritzia pays no dividend, so there is no dividend table. Average rows include ATZ and skip blank cells. Target 1Y is the MarketBeat consensus (TSE listings) pulled October 10, 2026 (ATZ 15, DOL 11, CTC.A 9, ATD 12, L 8, PET 9 analysts). Quarter and guidance figures are from Aritzia’s October 8, 2026 release; broker moves are from October 9, 2026 reports.

Sources

• Aritzia news release, October 8, 2026 — Aritzia Reports Second Quarter Fiscal 2027 Financial Results
• Aritzia Q2 fiscal 2027 conference call, October 8, 2026
• The Globe and Mail — Friday’s analyst upgrades and downgrades, October 9, 2026 (Canaccord, Raymond James, Ventum, TD Cowen)
• Benzinga / StreetInsider — UBS and RBC target changes, October 9, 2026
• Reuters via MarketScreener — TSX posts biggest gain in five weeks, October 9, 2026
• MarketBeat — ATZ consensus (15 analysts) and peer consensus targets, pulled October 10, 2026
• TSX screener merge October 8, 2026 (3,581 rows)

Media credits

Wikimedia Commons: Aritzia logo (File:Aritzia logo (2017).svg, public domain; trademark of Aritzia Inc.); “ARITZIA in CF Sherway Gardens 2023” by Canmenwalker (CC BY 4.0); “Aritzia store in Toronto” by bargainmoose (CC BY 2.0); “USA-NYC-Aritzia 5th Avenue” by Ingfbruno (CC BY-SA 3.0); “New Aritzia Store Dadeland Mall, Dec 2024” by Phillip Pessar (CC BY 2.0). No AI-generated images were used.

By Andrew · stocksummarizer.com