Luxury parka maker Canada Goose (TSE:GOOS) has reported strong financial results. In fact, it put up not only a profit, but it also beat estimates for revenue. This result was strong enough to send shares up 2% in Thursday’s trading.
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Revenue for the second quarter came in at $267.8 million. That is down from this time last year, which featured revenue of $281.1 million. Net income to shareholders, though, was up significantly. That figure came in at $5.4 million, or around $0.06 per share. This time last year, it was $3.9 million, or around $0.04 per share.
Adjusted earnings came in at $0.05 per share, which was down substantially from the same time in 2023, when it came in at $0.16 a share. Tipranks data showed a consensus forecast that called for a loss of $0.05 per share.
As for the company’s outlook, the report noted a range from “…a low-single-digit percentage decrease to low-single-digit percentage increase.” Given that the earlier forecasts looked for only a low-single-digit increase, that is a fairly significant downgrade.
Adjusting to the Future
Canada Goose is making moves to try and prevent future losses. One of the biggest things it is doing is stepping into more budget-friendly clothing, and away from its $1,000-plus parkas. A recently-begun Canada Goose sale reveals that some models will be getting discounts up to $500 apiece, which may make them more accessible to consumers.
The company is also expanding its footprint in China, where sales have been holding up well despite concerns of an economic downturn in the country, but it is also pushing into less widely-known markets.
Is Canada Goose Stock a Buy?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on TSE:GOOS stock based on one Hold and two Sells assigned in the past three months, as indicated by the graphic below. After a 6.89% loss in its share price over the past year, the average TSE:GOOS price target of C$14.16 per share implies 3.29% upside potential.
