As the holiday season concludes, consumer discretionary stocks are poised to reap the rewards of increased spending. Canadians having splurged on gifts, dining, and experiences, makes now a great time to explore opportunities in this sector. Here are three Canadian consumer discretionary stocks positioned to benefit from the recent holiday spending trends.

1. Canada Goose Holdings Inc. (TSX: GOOS)

Canada Goose is a luxury outerwear brand synonymous with premium quality and timeless style. With winter coinciding with the holiday season, the demand for its coats, jackets, and accessories tends to surge. The company has a strong direct-to-consumer strategy, leveraging e-commerce and flagship stores to capture sales during peak shopping periods.

Canada Goose also benefits from international demand, particularly in regions like Asia, where holiday gifting and brand prestige drive revenues. Seasonal marketing campaigns and limited-edition releases bolster its appeal, attracting holiday shoppers looking for high-value gifts.

Investors should keep an eye on the company’s ability to maintain pricing power despite inflationary pressures. With a premium brand and a seasonal sales boost, Canada Goose remains a compelling choice for the holiday shopping frenzy.

2. Restaurant Brands International Inc. (TSX: QSR)

The parent company of household names like Tim Hortons, Burger King, and Popeyes, Restaurant Brands International (RBI) is set to capitalize on holiday indulgence and convenience spending. Fast food and quick-service restaurants are a staple during busy holiday months, whether for family outings, holiday road trips, or a quick meal after shopping sprees.

RBI’s strong promotional campaigns, such as festive menu offerings at Tim Hortons, resonate with Canadian consumers. Additionally, its loyalty programs and robust digital infrastructure ensure a seamless customer experience, driving repeat business during the holidays.

With its diverse portfolio of brands and global presence, RBI offers stability and growth potential for investors looking to tap into holiday dining and convenience trends.

3. Spin Master Corp. (TSX: TOY)

Spin Master, a global children’s entertainment company, is a prime pick for holiday spending. The maker of popular brands like PAW Patrol, Hatchimals, and Rubik’s Cube sees a significant revenue spike during Q4 as parents and gift-givers shop for toys and games.

The company’s strong pipeline of innovative products and its ability to tap into entertainment tie-ins with TV shows and movies make it a favorite among kids and parents alike. Spin Master’s digital gaming segment, including its Toca Boca and Sago Mini brands, also adds a modern twist to its offerings, capturing a broader audience.

With holiday shopping heavily skewed towards toys, Spin Master is well-positioned to deliver strong earnings and provide investors with seasonal growth opportunities.

Why Consumer Discretionary Stocks Are a Holiday Play

The holiday season typically boosts spending across categories like apparel, dining, and toys, benefiting companies that cater to these demands. While macroeconomic concerns like inflation and interest rates may temper overall spending, Canadian consumers have shown resilience in prioritizing holiday celebrations.

Investing in consumer discretionary stocks like Canada Goose, RBI, and Spin Master provides exposure to businesses that are well-prepared for this seasonal uptick. Whether it’s a warm jacket, a quick bite, or a toy under the tree, these companies stand to gain from the joys of holiday giving.

Final Take

Holiday spending is a powerful catalyst for consumer discretionary stocks, and these three Canadian companies are uniquely positioned to thrive. Whether you’re seeking growth from international brand appeal, stable revenues from dining, or a seasonal surge in toy sales, these stocks offer attractive opportunities this holiday season.