Canada Goose Jackets for sale in a Nordstrom business in Toronto, Ontario, Canada, on Tuesday, March 21, 2023. Nordstrom will close its six Canadian department stores and seven Nordstrom -Rack shops, as CEO Erik Nordstrom said, the company sees no realistic path to profitability in the country. Photographer: Cole Burston/Bloomberg via Getty Images
Cole Burston | Bloomberg | Getty pictures
Shares of Canada goose On Wednesday, around 20%rose on Wednesday after the company had reported the fourth quarter of the financial year that the analysts exceeded, although the company withdrew the outlook for the 2026 financial year due to the “macroeconomic uncertainty”.
The luxury dealer stated that he will not provide a financial outlook for the 2026 financial year due to the uncertainty, citing “dynamic consumer expenditure patterns caused by the unpredictable global trade environment”.
Nevertheless, Canada Goose said that “the strength of the brand, the solid financial position of the company and its ability to adapt to changing conditions is still confident.
Here is what the company reported in the fourth quarter of the financial year compared to what Wall Street expected, based on a survey of LSEG analysts:
- Win each share: 33 Canadian cent adapted compared to 23 Canadian centers
- revenue: Approx. $ 384.6 million ($ 277.1 million), VS about $ 356.4 million ($ 256.8 million) expected
When calling with investors, Beth Clymer, Chief Operating Officer from Canada Goose, said that 75% of Canada Goose units in Canada and “practically all” correspond to the agreement between the USA and Mexico Canada, which means that they are currently exempted from President Donald Trump's tariffs. The remaining production, which mainly comes from Europe, is faced with an increase in tariffs, but they will have “minimal financial effects”, she said.
CEO Dani Reiss repeated this feeling and added that the “predominant majority” of the retailers' products is currently not affected by tariffs.
“This is not the first time that Canada Goose has successfully navigated the uncertainty. We have the challenging times until 2008 via Covid and every time we emerged more,” said Reiss.
The CFO Neil Bowden added that the tariffs are not directly material for the 2026 financial year, but the “indirect effect of these measures on the global economy and the changing landscape create greater uncertainty for us”, especially since the company is at peak times months before it.
The sales of Canada Goose rose by 7.4%compared to the same period in the previous year.
The net result, which is due to the shareholders for the fourth quarter of the fourth quarter, was approximately $ 27.1 million or 28 Canadian cent per watered share compared to a net profit, which can be attributed to the shareholder of $ 5 million or 5 Canadian cent per diluted in the previous year.
Until the end of Monday, the shares had so far dropped by almost 14%, which had reached an all -time low in the past month after the analysts of Barclay downgraded the stock and reduced their price target.
The luxury sector as a whole showed signs of weakness, with big luxury players like LVHMBurberry and Gucci owner Dry Reporting on sales migration in the quarter.
Canada Goose, known for its luxury parkas and buffer jackets, which can be sold in retail for over $ 1,000 in retail, has tried to expand into the category of non-winter by offering products such as rain jackets and clothing for warm weather.
The glasses collection introduced in the fourth quarter was the company's first online product introduction of the company with virtual drive tools for artificial intelligence. The retailer described the start as a “key milestone” on its “product category expansion trip” and part of a greater push to strengthen the relevance of the brand.
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