Vancouver's next Lululemon: Aritzia

Aritzia Inc is a Canadian women’s fashion brand founded in Vancouver that has been on the rise in the fashion industry. The company went public on October 3rd, 2016 and shares many similar traits to a young Lululemon. As of January 13, 2021, Aritzia operates 68 boutiques in Canada, and 33 boutiques in the United States with a customer base willing to pay a premium price for a high quality product. Like the Lululemon, Aritzia has begun its expansion into the men’s fashion industry with many of its popular fashion lines. Investors are bullish on Aritzia’s expansion into ecommerce and to the U.S. market as it’s unique approach to boutique fashion in today’s modern world has made it a hot growth stock in the retail industry. Many fashion brands are still learning how to leverage social media applications such as Instagram, TikTok, and the next generation of consumers are being converted through social platforms. Comparing company earnings with company reach on social platforms the following concerns future growth trends. We will take a look at the social media platform Instagram to similar retailers. Company Instagram Followers (million) Most Recent Quarterly Earnings (in billion USD) % Surprise Ratio (Followers : Earnings) Aritzia  1.0  $0.28 0.00 1 : 0.28 Gap  3.1 $3.99 -13.79 1 : 1.29 Nike 200 $11.2  23.81 1 : 0.06 Lululemon 3.4  $1.12 33.33 1 : 0.33 A high ratio from followers may signify that a company has a weak understanding of its marketing to the future generation of consumers, as a large portion of future audience members is not following their marketing campaigns. Looking at Aritzia and Lululemon, the data may surprise you. We find that both companies have relatively similar data points and good standing with the future market of consumers. The future market is here and digital media has become a staple in marketing for future consumers. With COVID-19 accelerating the shift to digital media marketing, the pandemic has amplified public awareness of social injustice in the supply chain, and thus more than ever, consumers seek justice and demand more from brands in their engagement with socio-political values. It is important to consider and highlight that Aritzia has gone above and beyond for a company of their size and in the 2020 fiscal year, Aritzia: Donated over $100,000 to Black Lives Matter and the NAACP. Payed $20 million through the Aritzia CommunityTM Relief Fund to ensure financial continuity for our people during boutique closures and to enable seamless boutique reopenings;  Gifted 100,000 Aritzia CommunityTM clothing packages to frontline healthcare heroes in Canada and the United States With these trends in mind, investors may fathom to understand the capabilities of a company like Aritzia and why it is seen as a rather highly evaluated growth stock. 

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calamari99

Jan 25, 2021

53.58%

Change % Since Posting

28.05

Price When Posted

15.03

Change Since Posting

ATZ.TO

Aritzia Inc.

43.08

0.82
1.94%
Current Price

Vancouver's next Lululemon: Aritzia

bullish

Aritzia Inc is a Canadian women’s fashion brand founded in Vancouver that has been on the rise in the fashion industry. The company went public on October 3rd, 2016 and shares many similar traits to a young Lululemon. As of January 13, 2021, Aritzia operates 68 boutiques in Canada, and 33 boutiques in the United States with a customer base willing to pay a premium price for a high quality product. Like the Lululemon, Aritzia has begun its expansion into the men’s fashion industry with many of its popular fashion lines. Investors are bullish on Aritzia’s expansion into ecommerce and to the U.S. market as it’s unique approach to boutique fashion in today’s modern world has made it a hot growth stock in the retail industry.

 

Many fashion brands are still learning how to leverage social media applications such as Instagram, TikTok, and the next generation of consumers are being converted through social platforms. Comparing company earnings with company reach on social platforms the following concerns future growth trends. We will take a look at the social media platform Instagram to similar retailers.

 

Company

Instagram Followers (million)

Most Recent Quarterly Earnings (in billion USD)

% Surprise

Ratio (Followers : Earnings)

Aritzia 

1.0 

$0.28

0.00

1 : 0.28

Gap 

3.1

$3.99

-13.79

1 : 1.29

Nike

200

$11.2 

23.81

1 : 0.06

Lululemon

3.4 

$1.12

33.33

1 : 0.33

A high ratio from followers may signify that a company has a weak understanding of its marketing to the future generation of consumers, as a large portion of future audience members is not following their marketing campaigns. Looking at Aritzia and Lululemon, the data may surprise you. We find that both companies have relatively similar data points and good standing with the future market of consumers.

The future market is here and digital media has become a staple in marketing for future consumers. With COVID-19 accelerating the shift to digital media marketing, the pandemic has amplified public awareness of social injustice in the supply chain, and thus more than ever, consumers seek justice and demand more from brands in their engagement with socio-political values.

It is important to consider and highlight that Aritzia has gone above and beyond for a company of their size and in the 2020 fiscal year, Aritzia:

  • Donated over $100,000 to Black Lives Matter and the NAACP.
  • Payed $20 million through the Aritzia CommunityTM Relief Fund to ensure financial continuity for our people during boutique closures and to enable seamless boutique reopenings; 
  • Gifted 100,000 Aritzia CommunityTM clothing packages to frontline healthcare heroes in Canada and the United States

With these trends in mind, investors may fathom to understand the capabilities of a company like Aritzia and why it is seen as a rather highly evaluated growth stock. 

 

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30.86

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