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Highlights
- The S&P/TSX Capped Consumer Discretionary Index surged by 9.23 per cent on a year-to-date (YTD) basis
- A retail stock mentioned here clocked a year return of nearly 143 per cent
- A stock listed below is expected to dole out C$ 0.05 per share as a quarterly dividend, payable on November 5.
The COVID-19 outbreak led to complete lockdowns and strict social distancing norms worldwide that directly impacted the global retail landscape. In addition, the ban on sales of non-essential items and sanitization requirements have increased the overall costs of retail businesses.
However, unlike many, some Canadian retail companies like Aritzia Inc and Dollarama Inc have tackled the retail apocalypse quite well. The Canadian retail sector is likely to do well as we are stepping into the holiday season.
Top Two Canadian Retail Stocks to Buy in November
The S&P/TSX Capped Consumer Discretionary Index surged by 9.23 per cent on a year-to-date (YTD) basis. It gained 0.06 points and jumped up by 0.024 per cent on Friday, October 29.
Also read: 5 Canadian retail stocks to buy as we head into holiday season
That said, let us have a glance at the top TSX-listed retail stocks.
Aritzia Inc Subordinate Voting Share (TSX:ATZ)
Canadian exclusive fashion brands company Aritzia Inc noted its stock fall by 0.975 per cent to C$ 48.74 apiece at market close on Friday, October 29. At this level, it had fallen by almost four per cent from a one-year high of C$ 50.68 attained on October 18.
Image source: © 2021 Kalkine Media Inc
The ATZ stock rose by almost 89 per cent on a year-to-date (YTD) basis, and its nine-month return was more than 83 per cent. While in the previous six months it grew by approximately 59 per cent and gained more than 33 per cent in the last three months. Aritzia had a year-over-year (YoY) return of nearly 143 per cent.
The Vancouver-headquartered apparel company posted a YoY increase of 74.9 per cent in net revenue to C$ 350.1 million and adjusted net income of C$ 0.39 per diluted share in the second quarter of fiscal 2022.
Dollarama Inc (TSX:DOL)
Canadian discount retail store operator Dollarama Inc saw its stock closing at C$ 55.94 apiece, up by 0.089 per cent on Friday, October 29. It had declined by more than eight per cent from its 52-week high of C$ 60.87 reached on August 20.
The DOL stock plunged by almost five per cent in the previous three months and dropped by more than two per cent in the past six months. However, it noted a nine-month gain of nearly 12 per cent and a one-year return of more than 20 per cent.
The retail operator posted a YoY rise of 1.6 per cent in its sales to C$ 1.02 billion, and direct COVID-19 costs were down to C$ 11.7 million in the second quarter of fiscal 2022.
Dollarama is expected to dole out C$ 0.05 per share as a quarterly dividend, payable on November 5.
Also read: Is Dollarama (TSX:DOL) the best retail stock to buy & hold?
Bottom line
Investors who want to invest in the Canadian retail landscape ought to consider fundamentally strong stocks that are likely to overcome the economic downturn to earn significant returns. Also, it is important to note investment goals and risk factors before making any investment decisions.
