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“Best Buys Now” Pick #1:
Aritzia (TSX:ATX)
Women’s fashion boutique Aritzia (TSX:ATZ) is becoming one of the world’s premier brands.
Founder and Executive Chairman Brian Hill remains engaged in building out Aritzia’s real estate footprint, positioning the company for continued growth in the United States. Historically, the business has grown revenue at a roughly 20% compound annual growth rate (CAGR), which it is likely to continue in 2022: full-year guidance calls for 25-27% revenue growth.
With no debt (excluding leases) on the balance sheet and robust free cash flow, the company is deploying cash toward share repurchases for the first time in three years. In fact, on its July 7th earnings call, CFO Todd Ingledew said that Aritzia was increasing its pace of share repurchases “given market conditions.”
More than the financial results, though, it’s clear that the brand is resonating with customers — the company is making the rounds on TikTok videos.
As Aritzia continues to get “more famous” across North America (and likely across the world), we think customer enthusiasm will translate to robust business results for years to come. Consider buying shares and joining the ride!
The Motley Fool recommends Aritzia.
“Best Buys Now” Pick #2:
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