Stockchase Insights Aritzia Inc. ATZ-T BUY Jan 10, 2025

The question was on Aritzia or Dollarama taking some of the space left by the bankruptcy of HBC and could Aritzia move back up to $70. The answer was inconclusive.

With tariffs, could see the price of clothing go up. As Springsteen sang, textile jobs are not coming back to NA; clothes will still be imported. Impact on the clothing industry remains to be seen. Thinks prices will go higher, but people still need to get dressed. Onshoring will be a multi-year journey.

Correction is probably overdone, will probably bounce.

Issue these companies face is where the manufacturing is, hard to move it someplace else. Margin hit will probably be more than the 2.5% calculated by Raymond James. Lots of uncertainty, stock can probably fall further.

Really impressive Q4, very strong brand, US expansion is going extremely well. Tariff impact due to where it sources product, and investors are still evaluating that (and you should, too, before stepping in). He's always wanted to own, but trades at premium. Long-term will do well, quality company, excellent financials.

So early in its growth phase. Square footage growth about 10-15% for next 5 years, and add that to same-store sales growth of ~5-6%. Under-penetrated in US.

It has had 30% revenue growth year over year and e-commerce was up over 50%. It did temper guidelines in the last report. Wait for a downturn because it has history of volatility and is up a lot right now. The market is myopic in the way it looks at quarter by quarter results and any changes in margins.

They act more like a staple. They attract a wide range of age groups, young and old. Competition is tough, but they are run well and trade at a reasonable PE.

He wouldn't buy now because it has shot up so much. It was their largest holding but they have taken some profits recently. It is not priced in to their growth margin. It has a history of volatility so if it drops by 1/4 to 1/3 you could consider taking a position. You should be aware of the effects of tariffs. The products they have in their U.S. stores basically come from overseas. The long term picture is very attractive with lots of runway for growth internationally and the opening of new stores in the U.S.

Has been great long-term. Likes that the payback from new store openings has been very high. They don't open that many stores as peers, but still significant. It's a retailer though, and things can change long term. Yes, discretionary spending is the first to go in an economic downturn, but just as important is the Coolness Factor. Is this cool? Look at same-store sales growth and their marketing strategy. ATZ is doing the right things. A solid hold for now.

Remains very highly ranked within Canada on RSI. Continues to go up. In tech, retailers have been picking up as central banks have started to cut interest rates.