Analyst Oliver Chen of TD Cowen maintained a Hold rating on Canada Goose Holdings (GOOS – Research Report), retaining the price target of $16.00.
Oliver Chen has given his Hold rating due to a combination of factors concerning Canada Goose Holdings’s performance and outlook. Although the company’s fourth-quarter earnings per share were significantly higher than expected, their withdrawal of long-term targets previously set at their Analyst Day signals some uncertainty. Chen acknowledges the appointment of a new creative director and the internal restructuring efforts aimed at simplifying business operations. However, he remains cautious and prefers to see a stabilization in store productivity, which is currently below the company’s historical average, before adopting a more positive stance.
The report also considers the company’s strategic shifts for the coming fiscal year. Canada Goose is focusing on streamlining its organization and enhancing its marketing and product strategy to drive traffic and maintain cultural relevance. While there has been progress in diversifying the product mix away from heavy-weight down jackets, the U.S. wholesale segment and multi-brand retailers in EMEA are still facing pressures that warrant caution. Chen points out that while the Greater China region showed strong growth, the overall guidance suggests only modest revenue growth and EBIT margin expansion, weighed down by a decline in the wholesale channel and a more conservative retail expansion strategy.
According to TipRanks, Chen is a 4-star analyst with an average return of 5.0% and a 52.01% success rate. Chen covers the Consumer Cyclical sector, focusing on stocks such as Coty, Revolve Group, and Macy’s.
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Canada Goose Holdings (GOOS) Company Description:
Canada Goose Holdings, Inc. designs, manufactures, distributes and retails outerwear for men, women and children. It operates through the Wholesale and Direct to Consumer segments. The Wholesale segment comprises sales made to a mix of functional and fashionable retailers, including department stores, outdoor specialty stores, individual shops, and to international distributors. The Direct to Consumer segment refers to the online sales through its e-commerce sites to customers in Austria, Belgium, Canada, China, France, Germany, Ireland, Luxembourg, the Netherlands, Sweden, the United Kingdom, and the United States and sales to customers from company-owned retail stores in Boston, Calgary, Chicago, London, New York City, and Toronto. The company was founded in 1957 and is headquartered in Toronto, Canada.
