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Highlights
- Statistics Canada, on Tuesday, December 21, provided an advanced estimation that suggested that retail sales in the country surged by 1.2 per cent in November.
- The retail sales numbers noted a surge for the second month in a row.
- A fashion retail stock mentioned here delivered a year-to-date (YTD) gain of over 93 per cent.
Statistics Canada, on Tuesday, December 21, provided an advanced estimation that suggested that retail sales in the country surged by 1.2 per cent in November.
The retail sales numbers noted a surge for the second month in a row, indicating that Canadians are ready to spend, especially during the holiday season, and boost the nation’s recovery.
Keeping this in mind, let us explore some of the top retail stocks of 2021 in Canada.
Image source: © 2021 Kalkine Media®
1. Aritzia Inc (TSX:ATZ)
The fashion house posted a net revenue of C$ 350.1 million in the second quarter of fiscal 2022, noting a year-over-year (YoY) rise of 74.9 per cent.
Its adjusted net income per diluted share was C$ 0.39 in the latest quarter, up from C$ 0.01 in Q2 2022.
Aritzia stock closed at C$ 49.86 per share on Tuesday, December 21, delivering a year-to-date (YTD) gain of over 93 per cent.
Also read: 5 top Canadian communication stocks of 2021
2. Loblaw Companies Ltd (TSX:L)
Loblaw Companies Ltd reported a YoY surge of C$ 379 million in its third-quarter revenue of C$ 16.05 billion in fiscal 2021.
Its net earnings also expanded by C$ 89 million YoY to C$ 431 million in Q3 FY2021.
The Brampton-headquartered retailer is also scheduled for a quarterly dividend payout of C$ 0.365 per share on December 30.
The retail stock, which had a return on equity (ROE) of 13.73 per cent, closed at C$ 103.33 apiece on December 21.
L stock zoomed by roughly 65 per cent YTD.
3. George Weston Limited (TSX:WN)
George Weston Limited, which held a market capitalization of C$ 21 billion, operates in the retail and real estate market.
In Q3 FY2021, its net earnings from continuing operations amounted to C$ 238 million.
George Weston is set to dole out a quarterly dividend of C$ 0.6 apiece on January 1, 2022.
WN stock closed at C$ 147.89 apiece on December 21, having increased by nearly 56 per cent YTD.
4. Sleep Country Canada Holdings Inc (TSX:ZZZ)
Toronto-based mattress retailer Sleep Country Canada Holding Inc recorded revenue growth of C$ 31.4 million YoY to C$ 273.8 million in the third quarter of fiscal 2021.
The company posted an adjusted net income of C$ 39.7 million in the latest quarter, which was C$ 6.5 million up from Q3 2020.
Sleep Country Canada saw its scrip close at C$ 36.76 apiece on December 21. The mattress scrip swelled by almost 39 per cent this year.
5. Dollarama Inc (TSX:DOL)
Dollarama Inc reported sales of C$ 1.12 billion in Q3 FY2022, which was 5.5 per cent up from the previous year.
The Montreal-based retail company is set to pay a quarterly dividend of C$ 0.05 apiece on February 4, 2022.
Dollarama saw its scrip close at C$ 62.40 per share on December 21. Its stock soared by over 20 per cent YTD.
Also read: 5 best Canadian utility stocks of 2021 under $100
Bottom line
Canadian investors can take a note of the rising retail sales and invest in retail stocks to fetch steady returns in the long haul. However, one should mind the COVID-19 effects as they can again impair the retail space.
