GOOS - Canada Goose Is Moving In The Right Direction But The Valuation Is Demanding
2024-05-23 11:37:23 ET
Summary
- Canada Goose's Q1 2023 results were well-received, with 27% revenue growth and a 50% rise in adjusted EBIT, which led to the stock price jumping 30%.
- However, the results are not as good on a comparable basis. The company announced a new optimization plan and removed its 2028 guidance, signaling challenges ahead in my opinion.
- The company's new optimization plan focuses on improving profitability margins and recognizes the challenges in its retail strategy.
- The hiring of a Creative Director shows Canada Goose's efforts to compete with luxury outerwear brands like Arcteryx and Moncler.
- The stock price is still very demanding when compared to the company's guided results for FY25. It is unclear whether the new strategy will work, particularly on the creative side.
Canada Goose (GOOS) is a Canadian apparel manufacturer that sells luxury outerwear. The company is famous for its heavy winter parkas....
Canada Goose Is Moving In The Right Direction, But The Valuation Is Demanding