Aritzia seems to have found its product/market fit, is now expanding across the US and will next go to Europe and Asia. I see it as a Lululemon ten years ago or so (obviously going after a different segment of the clothing market, but you get the idea).
So, it is a great company.
Does that justify its current share price and earnings multiple? No it does not, especially after a 17% jump in one day. Aritzia is priced for perfection. When it inevitably falls a bit short, Mr. Market will give opportunities to buy in at lower prices.
Note: I listened to the earnings call and what I think what triggered the price jump was Aritzia management saying that Q4 was coming in quite a bit better than they had thought. That got the analysis all excited. You could practically hear the bored analysts perk up and start updating numbers in their spreadsheets.
Management also waxed eloquent about the synergy between retail locations and eCommerce and how that will be amped by the Aritzia app which they will soon launch. They believe the app will significantly increase customer stickiness (and purchases) with its capability to let customers imagine all sorts of new looks via the various Aritzia designer brands.
Fantastic wolf thanks. Nice your looking at larger companies not just micro caps. I appreciate your willingness to look outside of micro caps and provide facts and numbers
I bought a pile at 23 and warrants . Cashed the warrants too early and left a pile on the table . I would like to cashout and buy back on the pullback but want to hold long. If I sell it will climb thru the roof . If I hold I will watch thousands evaporate on a a pullback. I hate the stock market . On a less whiny note. The long term on this is great as they have barely touched the US
GRGD IPO in December in the same market. Looking at my wife's 7/1 ratio of closet space over me, I'd say that the women's clothing market is doing fine.
Aritzia seems to have found its product/market fit, is now expanding across the US and will next go to Europe and Asia. I see it as a Lululemon ten years ago or so (obviously going after a different segment of the clothing market, but you get the idea).
So, it is a great company.
Does that justify its current share price and earnings multiple? No it does not, especially after a 17% jump in one day. Aritzia is priced for perfection. When it inevitably falls a bit short, Mr. Market will give opportunities to buy in at lower prices.
Note: I listened to the earnings call and what I think what triggered the price jump was Aritzia management saying that Q4 was coming in quite a bit better than they had thought. That got the analysis all excited. You could practically hear the bored analysts perk up and start updating numbers in their spreadsheets.
Management also waxed eloquent about the synergy between retail locations and eCommerce and how that will be amped by the Aritzia app which they will soon launch. They believe the app will significantly increase customer stickiness (and purchases) with its capability to let customers imagine all sorts of new looks via the various Aritzia designer brands.
Well said, and LOL re the call.
Fantastic wolf thanks. Nice your looking at larger companies not just micro caps. I appreciate your willingness to look outside of micro caps and provide facts and numbers
Oh and nice work, mate 👍🏻
Knew I should have bought it at 22
Patience is important in this game
I bought a pile at 23 and warrants . Cashed the warrants too early and left a pile on the table . I would like to cashout and buy back on the pullback but want to hold long. If I sell it will climb thru the roof . If I hold I will watch thousands evaporate on a a pullback. I hate the stock market . On a less whiny note. The long term on this is great as they have barely touched the US
GRGD IPO in December in the same market. Looking at my wife's 7/1 ratio of closet space over me, I'd say that the women's clothing market is doing fine.