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Retail Expansion Positions High Tide for Long-Term Growth

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Key Takeaways

  • High Tide expanded to 203 Canna Cabana stores across Canada by July 2025.
  • HITI's Canna Cabana captured 12% retail share with 2.3X peer revenue per store.
  • Ontario's raised store cap supports High Tide's growth in Canada's biggest market.

Over the past few quarters, High Tide’s (HITI - Free Report) Canna Cabana retail cannabis store has demonstrated steady expansion across Canada. In early 2025, the company launched a new store in Cochrane, AB. In May, it launched another new store in Cornwall, ON. Just weeks later, it had further openings in Brantford, ON, and West Springs, Calgary. These openings brought High Tide’s total store count to 199 Canna Cabana locations across Canada, 82 in the province of Ontario and 86 in the province of Alberta. Most recently, in July, the addition of a new store in Drayton Valley, AB, pushed the tally to 203 locations, underscoring the company’s consistent growth momentum.

During February and March, Canna Cabana reached a 12% market share of the cannabis retail market. An average Canna Cabana store generated 2.3 times the revenues of its peers. The company reported approximately $6.8 million in retail sales from April 17, 2025, through April 20, 2025.

Per a report by Grand View Research, the Canada legal cannabis market size was valued at $3.25 billion in 2024 and is projected to witness a CAGR of 12% from 2025 to 2030. High Tide’s retail growth was backed by factors like the federal legalization of cannabis and the growing awareness of the health benefits of cannabis consumption. In January 2024, the Ontario government doubled the cannabis retail store cap per operator from 75 to 150 locations. Ontario, being the largest cannabis market in Canada by population and sales (per Business & Industry Canada), plays a pivotal role in the company’s growth strategy.

Peer Updates

Village Farms (VFF - Free Report) second-quarter earnings results highlighted its strong performance in international medical export sales that jumped 690% year over year. The company has retained its position as one of Canada’s top three cannabis players while streamlining its retail portfolio. International expansion was a standout, with strong growth in Germany and the United Kingdom.

Additionally, the company began commercial shipments to the Netherlands in early 2025, contributing $2.4 million in incremental revenues. Additionally, Village Farms is planning to convert its remaining Delta 2 greenhouse in British Columbia to cannabis production. This will result in 2.2 million sq. ft. of operational cannabis production, increasing production square footage by 33%.

Aurora Cannabis (ACB - Free Report) is the largest Canadian exporter of high-quality medical cannabis with multiple GMP-certified facilities, representing 90% of its annual manufacturing capacity. Its international medical cannabis sales surged 85% year over year in the first quarter of fiscal 2026. This performance was supported by its leading position in key markets, including Canada, Australia, Germany, Poland, and the United Kingdom. Aurora further strengthened its portfolio in Poland with the launch of two new high-potency cultivars, now the strongest medical cannabis products in the market, and expanded distribution in the U.K. with the introduction of cultivar-specific inhalable extracts.

HITI’s Price Performance

In the past year, High Tide’s shares have surged 76.2%, outperforming the industry’s 3.3% growth. The S&P 500 composite grew 15.5% in the same period.

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Discounted Valuation

HITI currently trades at a forward 12-month Price-to-Sales (P/S) of 0.55X compared with the industry average of 5.60X.

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HITI Stock Estimate Trend

In the past 30 days, HITI’s loss per share estimate has improved 1 cent for 2025.

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HITI stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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