The stock of Canada Goose (GOOS) is down 16% on Nov. 6 after the winter parka maker reported a worse-than-expected loss for its Fiscal second quarter.
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The Toronto-based company reported a net loss of $0.14 Canadian dollars ($0.10 U.S.) for the quarter. That was worse than a loss of CA$0.11 expected on Wall Street, and much worse than a profit of CA$0.05 posted a year earlier.
Revenue for the quarter ended Sept. 28 totaled CA$272.6 million, which was below the consensus estimate of CA$274.1 million among analysts who track the company’s progress. GOOS stock has now declined 45% in the past 12 months as the retailer struggles with declining sales and profits.
For Sale?
Like many clothing retailers, Canada Goose is grappling with the immediate impact of U.S. tariffs. However, the company is also facing slowing sales for its luxury winter parkas as the Earth warms and winter becomes less cold and severe.
The company has reportedly put itself up for sale and is in the process of receiving take-private bids. Canada Goose’s valuation has been estimated at about $1.4 billion. Management has also been trying to diversify the business, expanding into eyewear as sales of its signature parkas decline.
Is GOOS Stock a Buy?
The stock of Canada Goose has a consensus Strong Buy rating among four Wall Street analysts. That rating is based on three Buy and one Hold recommendations issued in the last 12 weeks. The average GOOS price target of $16.49 implies 39.51% upside from current levels.
Read more analyst ratings on GOOS stock