CA - Canada Goose: China Recovery And Price Increases Are Making Me More Hopeful (Upgrade)

2024-06-23 23:50:27 ET

Summary

• Canada Goose has returned to strong growth in Greater China, helping to offset wholesale channel declines.
• Recent layoffs are also pushing the company to guide to mid-teens pro forma EPS growth in FY25.
• With the stock trading at a relatively modest ~15x forward P/E ratio and a <1x PEG, I'm cautiously optimistic and upgrading my rating on GOOS to neutral.

For several quarters now, weaker consumer spending has splashed across financial headlines, especially with softer macro conditions in China, the world's largest emerging market. These conditions had taken a toll on Canada Goose ( GOOS ) especially, the purveyor of incredibly expensive down jackets and parkas....

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