Statistics Canada released retail trade numbers for November 2017 on January 25. Retail sales activity rose 0.2% to $50.1 billion in November with six out of 11 sub-sectors showing positive growth. There were a number of stocks that stood out as attractive targets in light of the data. Today, we will look at four more investors should focus on as we head into the short month of February.
Canadian Tire Corporation Limited (TSX: CTC.A)
Canadian Tire stock has increased 1% in 2018 as of close on February 2. However, shares dipped 2.1% on the same day as the S&P/TSX suffered from a broader worldwide sell off. However, Canadian Tire stands out as one of the most attractive Canadian retailers.
Sales at general merchandize stores rose 1.8% in November 2017, while motor vehicle and parts dealers experienced a 3.6% drop. The latter is just a portion of Canadian Tire’s broad offerings. Electronics and appliance stores posted a 12.9% gain with Black Friday boosting sales. Canadian Tire last offered a dividend of $0.90 per share, representing a 2.1% dividend yield.
Aritzia Inc. (TSX: ATZ)
Aritzia is a Vancouver-based design house and fashion retailer. Sales activity at clothing accessories stores rose 3% in November 2017. Aritzia has declined since its initial public offering in October 2016, but the retailer has shown promising results in recent months.
In the fiscal 2018 third quarter, Aritzia saw net revenue jump 9.6% to $204.4 million and posted comparable sales growth of 6.3%. Net income climbed to $28.1 million in comparison to an $8.1 million loss in the prior year. Aritzia stock has increased 4.9% in 2018 and is up 28% over a three-month span. The company has also made impressive strides in building its e-commerce platform, a strategy which has paid off huge for other clothing retailers like Canada Goose Holdings Inc.
Imperial Oil Ltd. (TSX: IMO)(NYSE:IMO)
Imperial Oil is a Calgary-based petroleum company. The stock has dropped 5.3% in 2018 so far. Receipts at gasoline stations rose 5.9% in November 2017 on the back of higher gas prices. Oil also continued its rally into early January, as OPEC teased a possible extension to its production cut that is due to last to the end of 2018.
Imperial Oil owns and operates a large gas station retail network that includes Esso-brand service stations, On the Run Express, and Tiger convenience stores. Activity at convenience stores was also up 2.8% year over year in November 2017.
Lassonde Industries Inc. (TSX: LAS.A)
Lassonde is a Quebec-based company that develops, produces, and markets fruit and vegetable drinks. The stock has dropped 2.5% in 2018, but shares have climbed 23% year over year. Sales activity at food and beverage stores were up 2% year over year with specialty food stores jumping 10.5%.
In the 2017 third quarter, Lassonde saw operating profit rise to $33.9 million from $32.3 million in Q3 2016. The company also announced a quarterly dividend of $0.61 per share, representing a 1% dividend yield.
