Canada Goose (GOOS, $35.68) beats quarterly estimates; concerned about Hong King protest impact on business
Canada Goose’s second-quarter earnings and revenue beat analysts’ expectations. However, the company did express concerns about the impact of protests in Hong Kong.
The outdoor apparel maker reported adjusted earnings of 57 Canadian cents a share for the quarter, ahead of analysts' expectations of 43 cents.
Revenue increased +28% from a year ago to C$294.0 million ($221.6 million), surpassing the Street estimate of C$266.8 million.
Wholesale revenue expanded +22% to C$219.8 million, exceeding analysts' forecast of C$193.5 million. Direct-to-consumer revenue surged +47% to C$74.2 million, on the back of incremental revenue from new retail stores, and beat expectations of C$73.7 million,
Canada Goose recently opened a second store in Hong Kong. But CEO Dani Reiss told analysts on a conference call that the unrest in Hong Kong had a significant effect on the company's business there.
GOOS in -9.20% downward trend, declining for three consecutive days on October 15, 2024
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where GOOS declined for three days, in of 306 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for GOOS moved out of overbought territory on October 01, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 25 similar instances where the indicator moved out of overbought territory. In of the 25 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on October 10, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on GOOS as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for GOOS turned negative on October 14, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
GOOS moved below its 50-day moving average on October 15, 2024 date and that indicates a change from an upward trend to a downward trend.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for GOOS crossed bullishly above the 50-day moving average on September 30, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GOOS advanced for three days, in of 274 cases, the price rose further within the following month. The odds of a continued upward trend are .
GOOS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 187 cases where GOOS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. GOOS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.070) is normal, around the industry mean (3.051). P/E Ratio (33.973) is within average values for comparable stocks, (28.555). GOOS's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.991). Dividend Yield (0.000) settles around the average of (0.036) among similar stocks. P/S Ratio (1.359) is also within normal values, averaging (1.481).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GOOS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock worse than average.
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General Information
a manufacturer of outerwear for men, women and children
Industry ApparelFootwear