Canada Goose tumbles despite topping earnings estimates

Getty/Jan Hetfleisch

  • Canada Goose‘s stock fell on Thursday by 15.25% per share at $US32.50.
  • The high-end coat maker reported quarterly results that beat Wall Street estimates.
  • Yet the company did not give new guidance and it named a new CFO, causing Wall Street investors to tread with caution, according to RBC.
  • Watch Canada Goose’s stock trade in real time here.

Shares of Canada Goose plummeted on Thursday after failing to excite Wall Street investors with its better-than-expected earnings results.

Shares fell by 17.24% on Thursday to $US31.55 per share. This was the largest drop since the parka-maker went public last March. Thursday’s decline erased most of the company’s gains this year, leaving the stock trading up 1.23% year-to-date.

Despite consecutive quarterly earnings beats, the company did not give a new annual forecast with its earnings report. Canada Goose also named Jonathan Sinclair, formerly of high-end shoe retailer Jimmy Choo, as its new finance chief. He will succeed current CFO John Black, who said he plans to retire when Sinclair steps in mid-year.

“Given the run in the shares, no update to the annual outlook, and a new CFO announcement, the shares could take a breather here,” RBC analyst Brian Turnick wrote in a note.

However, Wall Street was still positive on the stock. 10 out of 14 analysts polled by Bloomberg rated the company as a “Buy.” Three analysts said it was a “Hold” and only one rated it as a “Sell.”

Turnick maintained his price target of $US48 per share (in Canadian dollars).

Here’s Canada Goose’s earnings, in Canadian dollars:

Adjusted Earnings Per Share: $US0.58, vs $US0.49 expected by Wall Street

Revenue: $US265.83 million, vs $US248 million estimated

Net income: $US64.58 million, vs. $US53.96 million estimated

Read more about how athleisure retailer Lululemon is dealing with its management woes.

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