Business Loans: Instant Alert: Canada Goose tumbles despite topping earnings estimates

Your Message Subject or Title

Canada Goose tumbles despite topping earnings estimates

by Kimberly Chin on Feb 8, 2018, 2:00 PM

Canada Goose's stock fell on Thursday by 15.25% per share at $32.50.
The high-end coat maker reported quarterly results that beat Wall Street estimates.
Yet the company did not give new guidance and it named a new CFO, causing Wall Street investors to tread with caution, according to RBC.
Watch Canada Goose's stock trade in real time here.

Shares of Canada Goose plummeted on Thursday after failing to excite Wall Street investors with its better-than-expected earnings results.

Shares fell by 17.24% on Thursday to $31.55 per share. This was the largest drop since the parka-maker went public last March. Thursday's decline erased most of the company's gains this year, leaving the stock trading up 1.23% year-to-date.

Despite consecutive quarterly earnings beats, the company did not give a new annual forecast with its earnings report. Canada Goose also named Jonathan Sinclair, formerly of high-end shoe retailer Jimmy Choo, as its new finance chief. He will succeed current CFO John Black, who said he plans to retire when Sinclair steps in mid-year.

"Given the run in the shares, no update to the annual outlook, and a new CFO announcement, the shares could take a breather here," RBC analyst Brian Turnick wrote in a note.

However, Wall Street was still positive on the stock. 10 out of 14 analysts polled by Bloomberg rated the company as a "Buy." Three analysts said it was a "Hold" and only one rated it as a "Sell."

Turnick maintained his price target of $48 per share (in Canadian dollars).

Here's Canada Goose's earnings, in Canadian dollars:

Adjusted Earnings Per Share: $0.58, vs $0.49 expected by Wall Street

Revenue: $265.83 million, vs $248 million estimated

Net income: $64.58 million, vs. $53.96 million estimated