Q: What would you attribute the 15% YTD decline in the shares to?
5i Research Answer:
The consumer discretionary space has been weak in general, and while its earnings results were good, guidance slightly disappointed. It trades at a high valuation, but we think the premium is warranted long-term given its industry-leading status in the Canadian discount store space, and we might not expect much in the way of capital appreciation in the near-term, as a long-term core holding, we like the name.