Aritzia Inc. (ATZ.TO)

He missed this. It's done very well. Wider economic June retail sales were negative YOY, so he would take some money off the table and not put new money into this space.

EPS of 22c beat estimates of 16.5c. Revenue of $498M beat estimates of $486.9M. EBITDA of $53.8M beat estimates by 19%. Sales rose 7.8% led by 13% growth in the US. 2Q revenue guidance was largely maintained. Inventory optimization continues. (inventory fell 18%). Margins increased nicely, to 44% from 38.9%. Comparable sales rose 2% vs 1.3% expected. Investors should be happy here, but the stock has already been very strong leading up to the quarter. 
Unlock Premium - Try 5i Free

Does not own shares. Quality merchandise and corporate strategy, however waiting for share price to fall before buying. Also, waiting to see how management executes in the next few quarters. Better options for investors in the markets. 

WSJ came out this month with a very glowing article, particularly for working women in their 20s, highlighting an appreciation of quality. Volatility from being a pandemic beneficiary, and then inventory issues. Mostly getting through that. 

Expanding square footage 20-25% this year, will drive increased sales and earnings. 

Earnings have grown over time. Very confident on management's ability to execute on US growth strategy. Mismanaged margins, but sales per location held in. E-commerce has struggled. Stumbles keeping product "fresh".

It sold off from $40 because of negative sentiment towards the retail sector. Consumers are being squeezed and tightening their spending. It plans to grow its stores by 25% this year which should offset lower spending at existing stores.

Has owned shares in this company in the past. Strong demand for products in younger consumers. Retail footprint expanding at a high rate. Unique business model that is able to generate profits. Brand name that is very popular in young women. 

It has good growth in the U.S. and has good management. It is fine for the longer term but in the shorter term he is not interested in the consumer sector.

Growth stock. In-house production of its own designs. You can only buy its various brands in Aritzia stores. Very diverse audience. Huge unit growth potential in US. Boosted e-commerce during pandemic. A bet on management and continued execution on design. Historically has done well, has confidence in it going forward.

It took a big tumble so he bought more in October and will hold at this level since it is trading at a fair valuation. It needs more traction before getting a premium valuation. However he has long term conviction in it and feels it should grow in the double digit range. Just over half of its revenue comes form the U.S. side and each new store has a 12 month payback.

Shares now are where they should be, given their earnings potential. It sold off hard last year, surprising given its track record. He added more last October and has shot up since. They generate 25% ROE or $1.75 in earnings (the street targets $1.81). Trades at a fair 22x PE given their growth rate. 

Sold this in spring 2022. Shares plunged last year, but it's starting to recover. He's looking at this again. The merchandising and marketing team are excellent and deserve full credit. They just reported amazing results and shares popped.w

Continues to own shares in growth portfolio. Volatile stock but business is strong. Growing very well in Canada. Distribution and inventory concerns seem to fading. Expecting margins to improve. USA growth expected to continue. 

Not an investment he'd make. Too much variability in underlying demand, fashion in general, consumer preferences, and market whims. The kind of stock that the market gives way too much credit when it does well, and then take too much away when it does badly.

If you own, you might buy some more to average your way out of it, because there probably will be a better day for it. But you better be really sure that they're managing the business correctly and it's not just a stock price phenomenon of the stock market wagging the dog. Reports today.

He tends to stick with absolute needs that compound steadily over time. His stocks aren't super exciting, but they don't get smoked down either.