Q: Good morning I have been a holder of ATZ for a while pretty much back to even in terms of cost. I was wondering what has been driving this lately I can't seem to find any news that could be driving this? I hold this in a TFSA in your opinion is that the best account to hold this company in.? Thanks
5i Research Answer:
ATZ reported earnings and earnings beat estimates by 14%. More important, saled growth resumed, and inventory declined. The latter was the main concern for investors. High inventory can result in markdowns which hurts the brand's image. We think a TFSA is likely best, and we liked the numbers. It did test our patience but we think the worst is probably over here and the outlook has improved. Of course we would like to see a follow up with good growth next quarter as well.