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-”.

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Q: Hi Guys

At the current stock prices looking out 3 years would today you be a buyer of Lululemon or Artzia?

Thanks

Stuart

Read Answer Asked by Stuart on July 26, 2024

Q: I am currently only hold MG in the consumer discretionary sector and need to increase my exposure to the sector. MCD, SBUX and LULU have all dropped over the last few quarters with worry of the US consumer pulling back their purse strings. What are your thoughts on those three and what Canadian stock in the consumer discretionary sector interests you today? Long term buy and hold investor.

Read Answer Asked by eric on July 18, 2024

Aritzia Inc. Subordinate Voting Shares (ATZ)

Q: I would like to express my gratitude for your advice regarding not selling Aritzia stock before earnings. At the time, I was primarily concerned with safeguarding my gains. You wisely emphasized that quarterly results should not be the sole factor in determining buy and sell decisions. Now, I fully appreciate the correctness of your advice. I held onto my position and refrained from purchasing a protective put. Recent news indicates that Aritzia is aggressively expanding its presence in the US, signaling further growth. As a result, I am still enjoying a remarkable 100% gain on this stock. Thank you once again!

Read Answer Asked by Esther on July 15, 2024