Kalkine Media explores two TSX consumer stocks

Follow us on Google News:
More on:
 Kalkine Media explores two TSX consumer stocks
Image source: © Photomall | Megapixl.com
                                 

Highlights

  • Companies that create, manufacture, and market products and services used daily are known as ‘consumer stocks.’
  • Canada Goose reported growing its revenue by 19 per cent in Q2’23.
  • Aritzia mentioned generating a record quarterly revenue of C$ 624.6 million in Q3’23.

The stock market volatility that began last year has persisted in the first month of 2023 due to inflationary pressures and fears of a recession. The Canadian consumer stocks market has, nevertheless, been performing positively. Even if consumer stocks are not immune to economic downturns, there will always be a consistent demand for their products and services.

The S&P Capped Consumer Discretionary Index has grown by 7.01 per cent month-to-date.

In light of this, let’s glance at how these two TSX-listed consumer stocks have been performing lately:

Canada Goose Holdings Inc. (TSX: GOOS)

Canada Goose Holdings Inc. represents itself as a lifestyle brand that deals in the production of performance luxury apparel. The company was founded in 1957 in Toronto, Canada.

The company holds a market share of C$ 3.072 billion, with earnings per share (EPS) of C$ 0.77.

The retailer is currently involved in the buyback process of up to 5,421,685 subordinate voting shares under a normal course issuer bid (NCIB), which started on November 22, 2022, and will end on November 21, 2023. This number equals about 10 per cent of Canada Goose's total subordinate voting shares.

With this repurchase program, this Canadian consumer stocks company plans to utilize extra cash and support its broader capital allocation strategy.

Canada Goose mentioned growing revenue for the second quarter of 2023 by 19 per cent on a reported basis to C$ 277.2 million. While DTC revenue improved by 15.6 per cent, wholesale revenue witnessed a growth of 21.2 per cent in Q2’23.

The company’s other financials are summarized below:

© 2023 Krish Capital Pty. Ltd.

Aritzia Inc. (TSX: ATZ)

Vancouver, Canada headquartered Aritzia Inc. is a vertically integrated design house with operations across North America. The company has a vast online presence thanks to its global personal shopping platform, aritzia.com.

With a market capitalization of over C$ 5.3 billion, Aritzia has generated an EPS of C$ 1.67 alongside a P/E ratio of 27.80 for its stockholders.

This Canadian integrated design house informed the market of generating the highest-ever revenue for any quarter in Q3’23. Aritzia’s revenue for the third quarter of fiscal 2023 was C$ 624.6 million, a 37.8 per cent increase from the prior comparable period.

Revenue in the US retail and e-commerce segments also increased in Q3’23, up 57.8 per cent to C$ 313.5 million and 36.1 per cent higher to C$ 423.2 million, respectively.

Besides this, Aritzia’s net income grew by 8.9 per cent to C$ 70.7 million, and adjusted EBITDA reached the C$ 119.6 million mark with an increase of 9.5 per cent YoY.

Bottom Line

Before investing in the stock market, always conduct thorough research. One should understand all the pros and cons to ensure that they don't make common mistakes.

Please note, the above content constitnutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK