When it comes to top retailers, there are two that likely come to mind on the TSX today. Those are Canada Goose Holdings (TSX:GOOS) and Aritzia (TSX:ATZ). The pair have shown impressive financial performance and strategic growth initiatives, making them attractive options for investors. But which is the better buy?

Today, weâll examine both and discuss which is the better option for investors to buy right now.

Canada Goose

Canada Goose stock has recently shown promising financial performance, making it an attractive stock for investors to consider. The company reported strong results for the fourth quarter and full year of fiscal 2024, with fourth-quarter revenue increasing by 22% and full-year revenue up by 9.6% year over year. This growth was driven by robust demand in both their direct-to-consumer (DTC) and wholesale channels.

Canada Goose repurchased 1,723,574 subordinate voting shares under its normal course issuer bid for a total cash consideration of $27.4 million, demonstrating confidence in its financial stability and future prospects.

Canada Goose plans to continue expanding its product range beyond traditional heavyweight down apparel, with an emphasis on innovation while staying true to its brand values. Additionally, it aims to reshape its marketing strategy to generate strong brand engagement and return on investment.

Furthermore, the company is working on simplifying its internal operations to make decision-making more efficient and focusing on high-impact initiatives. This also involves incremental investments in technology and product development while slowing down new store openings to optimize working capital. So, investors looking for a stock with strong growth potential in the luxury retail sector should consider adding Canada Goose to their portfolios.

Aritzia stock

Alright, so what about Aritzia stock? The company has demonstrated robust financial performance and strategic growth initiatives, making it a compelling investment opportunity. Aritzia reported strong results for the first quarter of fiscal 2025, with net revenue increasing by 8% year over year to $463 million. This growth is primarily driven by the company's successful expansion in the U.S. market and the introduction of new clothing styles that have resonated well with consumers.

Despite macroeconomic pressures, Aritzia has managed to maintain its profitability. The company reported an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $31.6 million for the first quarter (Q1) of 2025. This performance underscores Aritzia's ability to navigate challenging economic conditions while still achieving growth.

Aritzia's growth strategy includes expanding its retail footprint and enhancing its product offerings. The company plans to open eight new boutiques in the U.S. during fiscal 2025, with several already operational. This expansion is expected to drive further revenue growth and strengthen Aritzia's presence in key markets.

Whatâs more, Aritzia's management has set a positive outlook for fiscal 2025, expecting net revenue to grow between 2% and 7% compared to the previous year. The company is also focused on maintaining its gross profit margins and managing operational expenses effectively. This proactive approach to managing costs and revenue growth positions Aritzia well for sustained long-term performance.

Whatâs the better buy?

Both Canada Goose and Aritzia present compelling investment opportunities, each with its own strengths. Canada Goose is focusing on enhancing its retail and digital presence while innovating its product range. In contrast, Aritzia is expanding aggressively in the U.S. and introducing popular new products that resonate with consumers. Ultimately, the choice is yours and whether you believe the future depends on more digital retail or U.S. brick-and-mortar stores.

The post Better Stock to Buy Now: Canada Goose or Aritzia Stock? appeared first on The Motley Fool Canada.