Review of Aritzia Inc.

MAY 09, 2024 - ATZ’s share price has recovered meaningfully in recent quarters as the company demonstrates great execution by resuming sales growth, and store expansion but also managing inventory in a more efficient manner. Investors now expect the worst is now behind the company, ATZ is trading at a fair multiple, and we think the company could potentially see a re-rating by the market if ATZ could demonstrate solid execution and resume its previous growth trajectory of double-digits. ATZ is also disciplined in capital allocation which balances a strong balance sheet, store expansion and share repurchases. We would maintain our rating at “A-”.