-
lululemon athletica inc. (LULU $179.74)
-
Aritzia Inc. Subordinate Voting Shares (ATZ $124.51)
-
Groupe Dynamite Inc. Subordinate voting shares (GRGD $86.19)
Thanks for your input.
Lululemon (LULU) shares are cheap which helps manage risks to some degree but this is also because they are seeing increased competition and slowing growth. The company is expected to grow in the mid single digits currently and we might give this one a bit more time before getting too interested.
Aritzia (ATZ) continues to look attractive with a long growth runway as they expand in the US. Shares do trade at a premium around 31X forward earnings but we think this is justified given the growth the company continues to see and they have been nimble at adusting to new trends over the years.
Groupe Dynamite (GRGD) trades at a similar valuation to ATZ and expects a similar rate of growth. There is a lot to like at GRGD and momentum in results continues to look strong. We would view it as a bit higher risk than ATZ just because of its shorter history as a public company and maybe a bit less proven through different types of cycles.