Canada Goose Stock (GOOS) Soars 25% After Management Says ‘Minimal Impacts’ from Tariffs

Canada Goose (GOOS) stock has risen more than 25% in the last two trading sessions after management at the luxury parka maker said they are seeing “minimal impacts” from tariffs.

GOOS stock is up 7% on May 22. That follows a gain of 19% the day before after the Toronto-based company said that tariffs are having little impact on its business. Canada Goose has avoided tariff impacts because 75% of its products are made domestically and comply with the existing U.S.-Mexico-Canada Agreement on trade.

That means Canada Goose’s goods are largely exempt from U.S. tariffs. “Our remaining production, which is primarily from Europe, is facing an increase in tariffs, but they will have minimal financial impact,” said Canada Goose Chief Operating Officer (COO) Beth Clymer on an earnings call with analysts.

Branching Out

Tariff and trade uncertainty is great enough that Canada Goose is withholding its guidance for the remainder of the current Fiscal year. To manage any tariff risks, Canada Goose is implementing a new four-part plan.

That plan includes doubling down on marketing, tweaking Canada Goose’s product mix, expanding its business through new store openings, and finding internal efficiencies. The company is also branching out beyond its down-filled winter coats and into new products such as fleeces, T-shirts, and polo shirts.

GOOS stock is now up 13% this year.

Is GOOS Stock a Buy?

The stock of Canada Goose has a consensus Moderate Sell rating among 10 Wall Street analysts. That rating is based on six Hold and four Sell recommendations issued in the last three months. The average GOOS price target of $10.36 implies 8.64% downside risk from current levels. However, these ratings are likely to change after the company’s recent financial results.

Read more analyst ratings on GOOS stock