Up 123% in 3 Years, Can Aritzia Stock Continue to Beat the TSX Index in 2026?

Aritzia (TSX:ATZ) proved that luxury fashion can thrive even when economists predict doom. Valued at a market cap of $12.4 billion, the Vancouver-based retailer crushed Q3 expectations with $1 billion in revenue – its first-ever billion-dollar quarter.

The company delivered 43% year-over-year growth, expanded margins, and reported a 55% increase in adjusted earnings per share. CEO Jennifer Wong’s assessment after 39 years with the company? “I’ve never been more excited about the business as I am right now.”

The mobile app launch that changed everything

Aritzia’s mobile app launch in late October shattered expectations. The app became the #1 download in the entire app store on launch day in both markets, staying #1 in shopping for 18 days in Canada. Total downloads hit 1.4 million – exceeding what management expected for the entire first year.

E-commerce revenue jumped 58% in the quarter, with the app driving conversion improvements almost immediately. Apps account for 20% to 40% of e-commerce sales of best-in-class retailers, and Wong believes Aritzia is tracking toward the upper end of that range.

U.S. expansion prints money

Aritzia’s U.S. real estate strategy is delivering exceptional returns.

• The company grew U.S. square footage by roughly 30% over the past year, opening 15 new and repositioned boutiques.
• Revenue in the U.S. market exploded 54% to $621 million, driven by e-commerce traffic growth approaching 60%.
• New U.S. boutiques are tracking to payback in under one year – faster than the company’s 12- to 18-month target.
• With just 72 boutiques currently operating, Wong sees long-term potential for 180 to 200 U.S. locations.
• Management plans to open 12 to 14 stores annually while maintaining disciplined expansion.

Canadian revenue rose 29% to $419 million, the fourth consecutive quarter of accelerating growth. This proves Aritzia isn’t cannibalizing its home market to fuel U.S. expansion.

The company is executing a true omnichannel strategy in which new boutiques, digital initiatives, and marketing investments reinforce one another. Aritzia expanded gross margins by 30 basis points while absorbing 410 basis points of tariff and de minimis pressure.

The retailer offset this through leverage on fixed costs, improved markdowns, and freight tailwinds. Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margins expanded 120 basis points to 20%, the seventh consecutive quarter of improvement.

Excluding tariff impacts, Aritzia’s margins would exceed its previous 19% long-term target.

Executing against tough comparisons

Aritzia’s Q3 came against brutal comps.

• Two-year stacked comparable sales accelerated throughout the quarter despite lapping exceptional November 2024 growth.
• Black Friday set records, with nearly 60% of boutiques achieving all-time sales highs, and retail and e-commerce hitting daily peaks in both countries.
• The company achieved this with lower markdowns than last year, suggesting genuine demand rather than promotion-driven sales.

Is ATZ stock still undervalued?

Management raised full-year revenue guidance to $3.615 billion to $3.64 billion, indicating year-over-year growth of over 32%. The company now expects to hit its fiscal 2027 target one year early.

Q4 guidance calls for $1.1 billion to $1.125 billion in revenue, implying high-teens comparable sales despite lapping a 26% comp from last year. Trends are running slightly ahead quarter-to-date.

Aritzia has delivered 123% returns over three years by executing a disciplined playbook. It is systematically building U.S. brand awareness, opening high-productivity stores in premium locations, and creating digital experiences that customers want.

With the mobile app just launching, a vast U.S. expansion runway, and management executing at the highest level in nearly four decades, Aritzia appears well-positioned to continue outpacing the TSX.

The risk is maintaining this growth as comparisons toughen. But after watching this team lap 26% comps and still accelerate, betting against them seems foolish.

Given consensus price targets, ATZ stock still trades at a 41% discount as of February 2026.

The post Up 123% in 3 Years, Can Aritzia Stock Continue to Beat the TSX Index in 2026? appeared first on The Motley Fool Canada.

Should you invest $1,000 in Aritzia Inc. right now?

Before you buy stock in Aritzia Inc., consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Aritzia Inc. wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,827.88!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 102%* – a market-crushing outperformance compared to 81%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of January 15th, 2026

More reading

• TFSA Investors: 2 Top Canadian Stocks Worth Buying With $3,500
• Invest in These Unstoppable Canadian Stocks for the Next 5 Years
• If I Could Only Buy 3 Stocks in 2026, I’d Pick These
• The Absolute Best Canadian Stocks to Buy and Hold Forever in a TFSA
• These Canadian Stocks Have Serious Growth Potential in 2026

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool has a disclosure policy.