AUS
NZ
UK
CA
USA
IND
_10_04_2024_16_38_50_427275.jpg)
Highlights
- Statistics Canada recently estimated that retail sales could be up 1.4 per cent for March.
- StatCan published Canada’s latest retail trade data on Friday, April 22, revealing that retail sales climbed to C$ 59.9 billion in February
- A retail stock listed below galloped by nearly 61 per cent YoY.
Retail stocks like Aritzia (TSX:ATZ), Alimentation Couche-Tarde (TSX:ATD) and Canadian Tire Corporation (TSX:CTC) could draw some attention as Statistics Canada recently estimated that retail sales could be up 1.4 per cent for March.
StatCan published Canada’s latest retail trade data on Friday, April 22, revealing that retail sales climbed to C$ 59.9 billion in February, indicating a monthly increase of 0.1 per cent. However, retail sales slid by 0.4 per cent in terms of volume this month.
The data agency found that clothing and clothing accessories stores led the core retail sales with a growth of 15.1 per cent, while sales of the motor vehicle and parts dealers declined by 5.1 per cent during February.
With sales projected to rise in March 2022, let us talk about three TSX retail stocks.
Aritzia Inc (TSX: ATZ)
Aritzia is a known clothing company that sells clothes online and through its boutiques across North America. The Canadian retailer posted a year-over-year (YoY) rise of 62.9 per cent in its net revenues to C$ 453.32 million in the third quarter of fiscal 2022.
Aritzia’s e-commerce revenue swelled by 46.9 per cent YoY to C$ 147.97 million in Q3 FY2022. Its retail revenue also increased by 72 per cent YoY to C$ 305.34 million in the latest quarter.
The clothing stock increased by over 47 per cent in 12 months.
Also read: GIB.A, CSU and DOL: 3 TSX growth stocks to buy and hold for long term
Alimentation Couche-Tarde Inc (TSX: ATD)
Alimentation Couche-Tarde operates a network of convenience stores, and fuel retails in 26 nations and territories. The Laval, Quebec-headquartered company saw its net profit reach US$ 746.4 million in Q3 FY2022, up from US$ 607.5 million in Q3 2021.
It also acquired 34 new company-operated stores, nine stores under the Londis brand and 17 dealer-operated stores in the latest quarter.
ATD scrip expanded by over 35 per cent in a year.
Canadian Tire Corporation Limited (TSX: CTC)
Canadian Tire Corporation announced an investment of C$ 3.4 billion over four years to improve its omnichannel capabilities and promote long-term growth.
The company also predicted its consolidated comparable sales, excluding petroleum, to increase by over four per cent by 2025, based on an average annual basis.
CTC stock galloped by nearly 61 per cent YoY.
Bottomline
While StatCan’s retail sales estimates for March are optimistic, investors should bear in mind the rising coronavirus cases in the country, which could impact retail companies’ performance and stock prices.
Also read: Suncor (SU) and Barrick (ABX): 2 TSX commodity stocks to buy
Please note, the above content constitutes 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.
