Is High Tide (TSXV:HITI) Using Aggressive Store Growth To Cement a Durable Retail Moat?

• High Tide Inc. recently announced plans to open three new Canna Cabana locations in Calgary, London and Brampton, bringing its network to 218 stores across Canada, including 91 in Alberta and 94 in Ontario, with the London store at 1299 Oxford Street East having begun sales on December 15, 2025, pending prior regulatory approval.
• This expansion adds to High Tide's position as an early discount club cannabis retailer, its move into bricks-and-mortar operations in Germany, and its broader international presence through e-commerce and medical cannabis distribution via Remexian Pharma GmbH.
• Now we’ll examine how this latest round of Canadian store openings influences High Tide’s investment narrative, particularly its retail footprint expansion.

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High Tide Investment Narrative Recap

To own High Tide, you generally need to believe its discount club model and expanding retail footprint can convert scale into sustainable profitability, despite ongoing net losses and a competitive Canadian market. The latest three-store addition modestly supports the near term growth catalyst of opening 20 to 30 locations in 2025, but it also reinforces the key near term risk that rapid expansion continues to put pressure on working capital, cash flow and margins if new stores ramp more slowly than expected.

The most directly connected recent update is High Tide’s November announcement of four additional Canna Cabana stores in Ontario and Alberta, which lifted the network to 215 locations. Taken together with the new Calgary, London and Brampton sites, these back to back openings sharpen the focus on whether dense clustering of stores in key provinces can support the growth thesis without intensifying price compression and eroding the earnings improvement that analysts expect over the next few years.

But while more stores can look like progress, investors should be aware that rapid expansion can quietly strain...

Read the full narrative on High Tide (it's free!)

High Tide's narrative projects CA$897.7 million revenue and CA$58.3 million earnings by 2028.

Uncover how High Tide's forecasts yield a CA$7.33 fair value, a 83% upside to its current price.

Exploring Other Perspectives

Eleven members of the Simply Wall St Community place High Tide’s fair value anywhere between CA$3.01 and CA$26.39, showing how far apart individual views can be. When you set those expectations against the company’s aggressive 2025 store opening program, it becomes even more important to weigh how expansion might affect cash flow, margins and the timing of any move toward sustained profitability.

Explore 11 other fair value estimates on High Tide - why the stock might be worth 25% less than the current price!

Build Your Own High Tide Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your High Tide research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free High Tide research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate High Tide's overall financial health at a glance.

No Opportunity In High Tide?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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