Canada Goose Holdings Inc. designs, manufactures, and sells premium outdoor apparel for men, women, youth, children, and babies. I was aware of Canadian Goose when they went public in 2017 and then Canadian Goose made the headlines again in recent weeks.
In the last two weeks, as weather has dipped as low as -30 degrees with wind chill, the Chicago Tribune reports that the city has fallen victim to a Canada Goose coat stealing spree. There have been multiple accounts of thieves specifically targeting and stripping people of their $495 to $1695 power parkas—and, according to the Tribune, at least one fake—during which a 54-year-old man was punched in the face and a 23-year-old male victim was robbed at gunpoint.
So Canada Goose was now on my radar again and they just so happen to announce earnings the past week. In the latest quarter Canada Goose saw revenue rise 50.2%. Its direct-to-consumer sales rose 78.7%. Operating income rose 55.6%. Canada Goose also raised its full fiscal-year outlook.
So why did the stock price drop double digits?
When Canada Goose went it had the highest price-to-earnings ratio in the luxury brand category. And now it’s twelve trailing month P/E is over 70. Although Canadian Goose had great quarterly results, the Markets weren’t willing to pay just a high valuation to own the company. And so, the stock sold off on the results.
So what’s next for Canada Goose, lets go to the charts to find out?
Base on the monthly chart, the chart suggest to go long once price near the $49 level, which is the monthly demand zone.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.