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 sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for GOOS moved above the 200-day moving average on June 21, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
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Notable companies
The most notable companies in this group are Nike (NYSE:NKE), Skechers USA (NYSE:SKX), VF Corp (NYSE:VFC), G-III Apparel Group Ltd (NASDAQ:GIII), Canada Goose Holdings (NYSE:GOOS), Lakeland Industries (NASDAQ:LAKE).
Industry description
Apparel/footwear might be slightly more ‘cyclical’ in the largely non-cyclical category of non-durables. While digital giants like Amazon have been rapidly expanding their presence, traditional clothing/footwear retailers have also been bulking up their online presence in recent years, to milk the burgeoning trend of online shopping among consumers across the globe. The apparel and footwear retail market was valued at around $ 360 billion in 2018, and this figure was expected to reach about $386 billion by 2020 (according to a Statista report). NIKE, Inc, V.F. Corporation and Under Armour, Inc. are some of the companies with the largest U.S. stock market caps in this segment.
Market Cap
The average market capitalization across the Apparel/Footwear Industry is 6.29B. The market cap for tickers in the group ranges from 1.66K to 140.24B. NKE holds the highest valuation in this group at 140.24B. The lowest valued company is SQBGQ at 1.66K.
High and low price notable news
The average weekly price growth across all stocks in the Apparel/Footwear Industry was 2%. For the same Industry, the average monthly price growth was 1%, and the average quarterly price growth was 3%. TALN experienced the highest price growth at 59%, while DLAPQ experienced the biggest fall at -57%.
Volume
The average weekly volume growth across all stocks in the Apparel/Footwear Industry was -9%. For the same stocks of the Industry, the average monthly volume growth was 21% and the average quarterly volume growth was 5%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 49
P/E Growth Rating: 55
Price Growth Rating: 60
SMR Rating: 64
Profit Risk Rating: 80
Seasonality Score: -4 (-100 ... +100)