CA - Aritzia: Potential Growth Opportunity From The U.S. Expansion Hold
2024-02-11 09:35:35 ET
Summary
- Aritzia struggled in 2023 due to elevated inventory levels, lower-than-expected revenue, and a mixed consumer environment.
- A successful expansion into the US and increased brand awareness could drive revenue growth and eCommerce sales for Aritzia in the future.
- I value Aritzia using the DCF and Multiples methods under 3 different scenarios (bull/bear/base).
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The purpose of this article is to look at Aritzia ( ATZ:CA , ATZAF ) through the lens of a long-term investor and try and project what they will be worth in 3-4 years. As of today, the two most important drivers of growth for Aritzia are 1) their ongoing expansion into the US, and 2) the expansion of their eCommerce business. I will attempt to project how these factors will play out in the coming years and tie that into a valuation to determine if the current price is reasonable....
Aritzia: Potential Growth Opportunity From The U.S. Expansion, Hold