Amazon Inc (AMZN( has three operating segments: North American retail, International retail and its cloud platform Amazon Web Services. It dropped 8% on its Q2 earnings despite a massive upside EPS surprise. Uncertainty over Chinese tariffs lowered forward guidance. Amazon’s online marketplace relies heavily on Chinese-manufactured goods. A few weeks ago, there was real doubt over negotiations and the American economic landscape. Port shipments have rebounded, and GDP growth has started to grow again despite a negative first quarter. I believe there will be an agreement between the United States and China and Amazon will be able to benefit even if there will be a residual flat tariff on imports.
From Google AI: “Amazon Web Services (AWS) provides on-demand cloud computing platforms and APIs to individuals, companies, and governments. In essence, AWS offers a wide array of services, including computing power, storage, databases, analytics, networking, and more, all accessible over the internet on a pay-as-you-go basis. This allows users to avoid the upfront costs and complexities of managing their own physical infrastructure.”
Q2 2025 Sales: $167,702m
North America – $100,068m 60%
International – $36,761m 22%
AWS – $30,873m 18%
Operating income: $19,171M
Net sales: Up 13% Y/Y
Operating Income: Up 31% Y/Y
Net Income: Up 35% Y/Y
Guidance:
Net sales are expected to be between $174.0 billion and $179.5 billion, or to grow between 10% and 13% compared with third quarter 2024.
Operating income is expected to be between $15.5 billion and $20.5 billion, compared with $17.4 billion in third quarter 2024.
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Alimentation Couche-Tard (ATD.TO) is a convenience store manager with over 16,000 locations in the US, Europe and Canada. Sales and Net Earnings decreased in the latest quarter compared to a year ago. Couche-tard was tied up in a takeover of Seven & I holdings, owner of the Seven Eleven chain in both Japan and the US. Now that the transaction has been scrapped, Couche Tard can now refocus on smaller, incremental acquisitions.
Sales (2006-2024): 4.1% CAGR
Income before taxes (2006-2024): 12.7% CAGR
EBITDA (FY2015-FY2025): 12.2%
Free cash flow (FY2015-FY2025): 5.7%
Couche-tard is undervalued and has a long history of excellent management and generating shareholders returns. Its been held up the last year with the Seven & I acquisition, that would’ve created the world’s largest convenience store operator. I’m buying the dip.
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Aritzia Inc., (ATZ.TO) together with its subsidiaries, designs, develops, and sells apparels and accessories for women in the United States and Canada.
Outlook: “Based on quarter-to-date trends, Aritzia expects net revenue in the range of $620 million to $640 million, representing growth of approximately 24% to 28%. The Company expects gross profit margin to increase approximately 200 bps and SG&A as a percentage of net revenue to decrease approximately 100 bps for the first quarter of Fiscal 2026 compared to the first quarter of Fiscal 2025. The Company expects Adjusted EBITDA as a percentage of net revenue to be approximately 14% for the first quarter of Fiscal 2026 compared to the first quarter of Fiscal 2025”
Q4 2025 (from a year earlier):
Net revenue increased 31.3% to $895.1 million
Net income increased 311.6% to $99.6 million
Aritzia Is a fast-growing clothing brand that receives a number of imports from China. But its CEO has also said they are preparing for tariffs and will manoeuvre around them.
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I own shares of AMAZON, ALIMENTATION COUCHE-TARD and ARITZIA
Devlin Demontigny 