How does ATZ (Artizia) compare to GOOS (Canada Goose) in terms of growth?

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Asked on August 24, 2020 2:22 pm
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Hi there,

First, this year is pretty much a wash for both companies. Retail was significantly impacted which stunted both of their growth prospects. ATZ is a former Bull List stock that was removed once it run up in price last year, and GOOS remains on our list. Both companies have similar growth prospects next year and both have a strong history of beating analysts estimates. Since it has gone public, GOOS has never missed estimates. For its part, Aritzia has only missed once.

Given this, it is likely that analysts estimates are on the low side. Once we return to 'normal' or our new version of 'normal', I believe GOOS has the stronger growth prospects due to the strength of its brand. Furthermore, Goose's Asian expansion provides it with considerable prospects - assuming of course it can get back on track. Headwinds began when Canada detained Huwaei's VP and China/Canada relations soured, then came the Hong Kong unrest and finally COVID. It has been a struggle for the company and really stunted growth, but the potential remains.

Of note I am long both companies, and thus believe in both of their prospects.

Mat

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Posted by Mathieu Litalien
Answered on August 24, 2020 4:51 pm