For a fast-growing small-cap stock, look no further than Canadian %ClothingRetailer %Aritzia (TSX: $ATZ).
The Vancouver-based company, whose clothes are popular with teens and young adults, continues to report blockbuster financial results as it expands aggressively into the U.S.
At the start of July, Aritzia reported earnings per share (EPS) of $0.36 U.S., which was up 157% from $0.14 U.S. a year earlier.
Revenue in what was the company’s fiscal first quarter totaled $663.3 million U.S., a year-over-year increase of 33%.
In-store sales came in at $480.3 million U.S., up 34% from a year ago, while e-commerce revenue climbed 30% to $183 million U.S.
The massive growth has propelled Aritzia’s share price sharply higher. So far in 2025, ATZ stock has gained 36%, trouncing the 7% return seen in the benchmark S&P 500 index.
Aritzia’s stock is running laps around competing retailers. Consider that Abercrombie & Fitch’s (ANF) stock is down 40% this year, while the Gap’s (GAP) stock is down nearly 10%.
Management at Aritzia attributes the success to the company’s ongoing push into the U.S. market, where it opened 13 boutiques over the past year.
Aritzia estimates that its U.S. customer base increased by 40% year-over-year in the most recent quarter and that its net revenue coming from America gained 45% to $413 million U.S.
Best of all, the company still has a tiny presence within the U.S. market and a lot of runway ahead of it in America.
Yet, despite all of its success, Aritzia currently has a market capitalization of less than $10 billion U.S., making it a small-cap stock.
AIso working in Aritzia’s favour is the fact that ongoing trade tensions between the U.S. and Canada, as well as tariffs imposed by U.S. President Donald Trump, are not having a big impact on the company’s sales or profits.
Management estimates that about 40% of Aritzia’s business is not impacted by tariffs because it falls outside the U.S. market.
Aritzia is vulnerable to tariffs imposed on China, where it manufactures much of its clothing. In response, Aritzia has been moving away from manufacturing in China.
By 2026, the portion of products Aritzia sells that are made in China is expected to be less than 10% of the company’s total sales.
Fueled by this year’s big gains, ATZ stock has risen 285% over the last five years, making it a top-performing retailer.
