Q: With the big drop in Lulu after earnings, do you have any concerns that Aritzia could face the same type of struggles?
5i Research Answer:
There is some concern but in the short term ATZ looks OK. 40% of its sales are outside of the US, and in its Q1 conference call it indicated that its current inventory allows it to largely escape tariffs in its spring/early summer season. But it will not be completely immune to a retail slowdown induced by higher prices due to tariffs.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in LULU.