On Friday, BMO Capital maintained its Outperform rating and a price target of Cdn$52.00 on shares of Aritzia (ATZ:CN) (OTC: OTC:ATZAF). The firm's analysis of web traffic in August 2024 showed a 3% increase in total website visits, a slowdown from the 13% growth observed in July. Despite a year-over-year decline of 11% in Canadian web traffic, the United States market exhibited robust growth with a 27% increase.
The second quarter of fiscal year 2025 is expected to see a 9% year-over-year rise in traffic, aligning with BMO's estimate of a 6.5% increase in same-store sales growth, which includes both online and in-store performance. The analysis revealed mixed results in new and returning users in Canada, whereas the United States experienced an uptick. Customer engagement metrics also showed mixed results.
The data further indicated that direct and organic search traffic in Canada decreased, contrasting with increases in the United States. However, paid search traffic saw a significant rise, attributed to Aritzia's strategic digital initiatives. This mixed performance highlights varying regional dynamics and the impact of the company's marketing efforts.
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