Why you are so bullish on Aritzia?
It is simply a well-run company that has achieved solid market share growth and profitability. It has a solid record of growth and recent guidance of more than 30% growth in a mixed economy, and we continue to see ATZ as an outperformer in the retail sector. It is doing many things right in its business, and the stock market often will take a shorter term view than the company. The recent drop concerns higher inventory levels: The company believes it can sell the inventory, and in fact said it could have performed even better last year if it had more inventory. It will either be right, or very wrong, on this call. So, a recession could come into play, but we are willing to bet more on management than on middle-age stock analysts who likely don't spend much actual time in their stores. Company-wide sales have tripled since 2019, and this record we think should allow investors to have some patience here. (5iResearch)