Canada Goose tumbles despite topping earnings estimates
- 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
