Canada Goose Holdings Inc.’s Canadian shares are on pace for the worst decline in over six years after the luxury parka maker missed on key earnings metrics despite a frigid winter season.
The Toronto-listed stock fell as much as 24 percent on Thursday, marking the retailer’s biggest intraday decline since May 2019, before paring some of the losses. US-listed shares of the company sank as much as 21 percent.
The fiscal third-quarter results “will likely trim earnings per share expectations for 2026 and beyond,” Bloomberg Intelligence analysts Andrea Ferdinando Leggieri and Deborah Aitken wrote.
Canada Goose reported an adjusted earnings before interest and taxes margin of 29.3 percent in the third quarter, falling short of the 32.9 percent forecast by analysts, according to data compiled by Bloomberg.
“The miss is despite one of the best winters ever,” BNP Paribas analyst Laurent Vasilescu wrote in a note to clients.
In 2019, Canada Goose lost over a quarter of its market value after reporting its first-ever revenue miss, which raised concerns at the time that the company’s soaring growth was hitting the brakes. At the time, the 31% drop had been its worst performance since the company’s public debut in 2017.
By Stephanie Hughes
Report: Canada Goose Receives Take-Private Bids at $1.4 Billion Valuation
Controlling shareholder Bain Capital, which is looking to offload its stake, has received multiple bids to take the luxury outerwear brand private at a valuation around $1.4 billion, but is waiting for more offers, CNBC reported on Tuesday.
