- Canada Goose’s revenue for the third quarter was C$607.9 million, falling short of the estimated C$621.2 million.
- Direct-to-consumer revenue came in at C$517.8 million, below the projected C$542.8 million.
- Wholesale revenue was higher than expected, reaching C$75.7 million compared to the C$65.4 million estimate.
- The company’s non-IFRS adjusted EBIT was C$205.2 million, missing the expected C$216.5 million.
- Adjusted EBIT margin was 33.8%, slightly lower than the anticipated 34.8%.
- Non-IFRS adjusted EPS was C$1.51, slightly under the C$1.54 estimate.
- Gross margin came in virtually on target at 74.4%, just shy of the 74.5% expectation.
- The adjusted net income was reported at C$148.0 million.
- Inventories were managed better than expected, totalling C$407.4 million against an estimate of C$448.8 million.
- The company reported strong brand momentum during the quarter, with the global launch of the Snow Goose collection receiving notable media attention and increasing brand interest.
- Analyst recommendations for the stock include 1 buy, 8 holds, and 5 sells.
A look at Canada Goose Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Canada Goose Holdings Inc. shows a mixed outlook based on the Smartkarma Smart Scores. With a Growth score of 3 and Momentum score of 3, it indicates a promising future in terms of expansion and market performance. The company seems to be on a positive trajectory for growth and maintaining its current pace. However, the Value score of 2 suggests that the stock may not be undervalued, which could impact its attractiveness to value investors. The Resilience score of 2 implies a moderate level of stability, indicating that while the company may face some challenges, it is not particularly vulnerable. Lastly, the low Dividend score of 1 may not make it a top choice for income-seeking investors.
As a holding company specializing in outerwear, Canada Goose Holdings Inc. designs, manufactures, and sells high-quality apparel for all ages globally. The company’s focus on premium outerwear positions it in the market as a provider of luxury and durable products. While the Smartkarma Smart Scores reveal a mix of ratings across different factors, the company’s core business remains solid, catering to a diverse customer base. Investors may find the company appealing for its growth potential and market momentum, although those seeking value or dividend income may need to consider other options.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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