Aritzia Inc T.ATZ

Alternate Symbol(s): ATZAF

Consumer Cyclical

Aritzia Inc. is a Canada-based vertically integrated design house. The Company is the creator and purveyor of Everyday Luxury, home to a portfolio of brands for every function and individual aesthetic. The Company provides personal shopping experiences at aritzia.com and in its 115+ boutiques throughout North America. The Company’s product categories include activewear, blazers and suiting, bodysuits, denim, dresses, intimates and shapewear, jackets and coats, jumpsuits and rompers, leggings and bike shorts, pants and accessories. The Company offers its products under various brands, including Babaton, Denim Forum, Golden, Little Moon, Sunday Best, Ten, The Group by Babaton, Tna, Wilfred, Wilfred Free, Contour, Seamless, Sweatfleece, The Effortless Pant, The Super Puff and others. Its distribution network consists of three distribution centers, two in Canada and one in the United States, that are positioned to service its boutiques and e-commerce business.

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Aritzia Inc

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Post by Possibleidiot01on Nov 01, 2024 6:41pm

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Michael Hakes - BNN - TOP PICK

Aritzia (ATZ TSX)

We met with CFO recently. While the stock is off its lows in the low $20, its well off its pre COVID-19 highs of $60. With 68 stores in Canada and 54 in the U.S., there is still a lot of room for growth. It has a long term store target of 150 in the U.S.

The current store growth plan is to open about eight to 10 stores per year in the U.S. There is a chance that it might increase this opening plan over the next year or so. The new stores in the U.S are doing very well with a payback period for new stores coming in better than plan.

With top line on the 10-15 per cent range and margin expansion, EPS could grow 20-25 per cent. EPS could reach over $3 in the next two years. And the stock could reach it old highs, $60.

TOP PICK

Very strong brand name with growing footprint in USA. Excellent price to value proposition on the stock markets. Recent meeting with CEO very positive. Share price below pre Covid-19 levels. Expecting 8-10 new stores in the US annually. Earnings projected to grow with expanded margins. EPS growth also projected to rise as more sales roll in. Would recommend to long term shareholders.

specialty stores

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