Aritzia Inc T.ATZ

Good Answer

[retiredcf]

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)

[Niceneasydoesit]

It's an answer that explains their view but someone likely  equally middle aged.  I'm no expert, but inventory in retail is usually bad, not good. Inventory is seasonal, and fashion is fickle. Tight supply chains are a must. I'm long, but also worried

[BearBullBrian]

If Aritzia has little trouble selling at regular price (it is not a big discounter), why should they have trouble selling at a reduced price on clearance? Strong brands clear out old excess inventory faster than weak brands...it's that simple. BBB

[Tucker51]

Not sure about how to answer that other than the market seems to think there is risk to it.Price...the only real gauge we have is now down 20% since December...Obviously someone thinks things aren't all that well..........

[flamingogold]

So much for all the rating upgrades. Analysts are for the most part just entertainment. Be contraian. My bid below $40 is still open for a fill.

[Tucker51]

Looks like you are going to get a chance at that fill below 40$What a disappointing name

[flamingogold]

Insiders have been dumping by the truckloads. I get they've earned it, but it provides headwinds. Add in an uncertain economic environment with high inflation, now a potential banking crises again (although I don't see it spreading to major banks). And, finally bullish calls by analysts... all a recipee for a selloff. Sub $40 was a given. Whether it tests lower $30 is less likely but if