Canada Goose Jackets for sale in a Nordstrom store in Toronto, Ontario, Canada, on Tuesday, March 21, 2023. Nordstrom will close its six Canadian department store locations and seven Nordstrom rack shops because CEO Erik Nordstrom said that the company no longer sees a realistic path in the profit port. Photographer: Cole Burston/Bloomberg via Getty Images
Cole Burston | Bloomberg | Getty images
Shares of Canada Goose Street on Wednesday about 20% After the company reported tax income from the fourth quarter that defeated the estimates of analysts, although the company attracted its fiscal year 2026 front views due to “macro-economic uncertainty”.
The luxury retailer said that it will not offer financial prospects for the tax year 2026 because of the uncertainty, with reference to “dynamic consumer expenditure patterns caused by the unpredictable worldwide trading environment.”
Canada Goose said, however, that “the trust remains in the power of the brand, the solid financial position of the company and the ability to adapt to changing circumstances.”
This is what the company reported for the fiscal fourth quarter compared to what Wall Street expected, based on a study among analysts by LSEG:
- Profit per share: 33 Canadian cent adapted versus 23 Canadian cent expected
- Gain: Approx. $ 384.6 million (US $ 277.1 million), versus approx. $ 356.4 million (US $ 256.8 million) expected
In a call with investors, Canada Goose Chief Operating Officer Beth Clymer said that 75% of Canada Goose's units are made in Canada and “almost all” comply with the United States-Mexico-Canada agreement, which means that they are currently exempt from President Donald Trump's rates. The remaining production, which comes mainly from Europe, is confronted with an increase in rates, but they will have “minimal financial impact”, she said.
CEO Dani Reiss repeated that sentiment and added that the “vast majority” of the retailer products are currently not affected by rates.
“This is not the first time that Canada Goose has successfully navigated the uncertainty. We have passed challenging times earlier, until 2008, via Covid, and every time we have become stronger,” Reiss said.
Chief Financial Officer Neil Bowden added that rates are not directly equipment for the tax year 2026 financial plans, but the “indirect effect of these actions on the world economy and the change of landscape creating greater uncertainty for us”, especially because the company is removed from its peak yields for months.
The turnover of Canada Goose rose by 7.4% compared to the same period last year.
The net result is attributed to shareholders for the fiscal fourth quarter ending on March 30, approximately $ 27.1 million, or 28 Canadian cent per watered share, compared to a net income that to be attributed to shareholders of approximately $ 5 million, or 5 Canadian cents per watered share in the previous annual period.
From the end of Monday, the shares had fallen almost 14% so far, which made a low point last month after the analysts of Barclay had lowered the share and had lowered their target price.
The luxury sector as a whole has shown signs of weakness, with great luxury players such as LVHMBurberry and Gucci owner Tube Reporting a delay in the sale in the quarter.
Canada Goose, known for its luxury parkas and puffer coats that can sell for more than $ 1,000, has tried to extend to the non-winter category by offering products such as raincoats and clothing with warm weather.
The Eyewear collection, introduced in the fourth quarter, was the first online product launch of the company, with artificial intelligence-driven virtual try-on tools. The retailer called the launch an “important milestone” in its “product category extension” and part of a larger push to strengthen the relevance of it all year round throughout the year.
