Aritzia IPO

When Aritzia recently announced an IPO (Initial Public Offering) I was immediately interested.

Both my daughters have frequently bought clothing there and have never been disappointed with the quality of the merchandise.

My wife has worked in retail ladies fashion for the last ten years.

She has always told me the single most important factor in women’s clothing is quality.

I was able to acquire some shares at the initial offer price of $16 and it has already risen sharply. The issue was ten times oversubscribed.

Canadian pension and mutual funds expressed a strong interest in the stock as there is currently a dearth of high quality growing retailers in this country.

The company announced their quarterly earnings yesterday and the results were very strong. Comparable sales growth was up almost 17% and gross profit margins also rose nicely.

Their online presence has also shown very strong growth.

This is a classic Peter Lynch type stock. In several of his books he talks about getting his best investment ideas by watching what his children buy.

Peter McMurtry

Posted in Blog Post.

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