Topic: How To Invest

Q: Pat, what do you think about the prospects for Aritzia? Both my daughters shop there, and I’m curious. Thank you.

Article Excerpt

A: Aritzia Inc., $45.10, symbol ATZ on Toronto (Shares outstanding: 87.7 million; Market cap: $5.0 billion; Consumer sector; TSINetwork Rating: Extra Risk; www.aritzia.com), is a Vancouver-based designer and seller of women’s apparel. The company currently operates 112 stores in North America, with 67 in Canada and 45 in the U.S. Aritzia aims to position its products between fast fashion and luxury by offering a mix of higher-profit exclusive brands (comprising 96% of sales). The company’s “Everyday Luxury” approach focuses on well-designed, high-quality products at reasonable prices. Notably, this fashion retailer places a lot of importance on the shopping experience offered at its boutiques. It aims to blend artistic touches, music and high-quality materials. All of its boutiques are designed by an in-house team of architects and interior designers to be both “aspirational” (demonstrating social prestige and material success) and comfortable. The company first sold shares to the public and began trading on the Toronto exchange in October 2016 at $16 a share. That…