Review of Aritzia Inc

AUG 08, 2023 - ATZ’s share price has been under tremendous pressure after the most recent earning release due to a significant slowdown in revenue growth, as well as a decline in profitability due to inefficient cost control and inventory markdown. We understand that the market is concerned with the long-term growth prospects of fashion companies, as many companies in the past have seen significant potential quickly come and go. Although ATZ is trading at a cheap valuation compared to historical averages, we think the company is a hold for now. We are aiming conservatively and downgrading our rating by one notch to “B+”, while at the same time continuing to remain bullish on the long-term prospects of the company.

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Aritzia Inc. Subordinate Voting Shares (ATZ)

Q: Thoughts before they report tomorrow? I know high inventory was an issue but I understand that they do an annual "warehouse sale" in August... should the presumed decrease in inventory overcome the haircut they'll take on the sales in terms of market reaction?

I'm asking you to predict the future a bit here, I know.

Read Answer Asked by Brett on September 27, 2023

Q: Hi, I was wondering if I can get your opinion on these stocks I'm holding losses on ATZ down 50%, ENPH down 25%, CROX down 25% and GSY down 20%.
I did tax loss selling last year in late December which bit me hard when the stocks took off in January with me sitting on the sidelines. Should I consider selling any of these now with the intention of buying back in 30 days and harvesting the tax loss? If so which would you suggest selling and which would you buy back? Short of that would you suggest averaging down on any of these instead? Thanks in advance! Take as many credits as you wish.

Read Answer Asked by Harry on September 21, 2023

Aritzia Inc. Subordinate Voting Shares (ATZ)

Q: ATZ: No nothing about this stock other than it is a retail clothing store that has lost a lot of value. I own nothing in this group other than CTC.A which I bought at crazy low price in 2020 and still hold in a small position. Please enlighten me as to it's fall from grace - the whys and what needs to happen for it to gain momentum again. Thinking about a small position?

Read Answer Asked by James on September 05, 2023