Canada Goose sinks the most in 17 months after revenue outlook falls short of expectations

Rich Fury/Getty Images for Canada Goose

Canada Goose tumbled as much as 15% on Wednesday after the parka purveyor held to its year-long forecasts, a move that disappointed some analysts.
Revenue more than doubled to $45 million as direct-to-consumer sales came close to tripling, beating revenue expectations by 13%.
But the specter of the resurging Delta variant pushed Canada Goose to maintain its earlier projections for 2021.
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Canada Goose tumbled as much as 15% on Wednesday after the parka purveyor held to its year-long forecasts, a move that disappointed some analysts.
The stock dipped as low as $37.81 from $44.44 the day prior, the sharpest percentage drop since a pandemic-driven sell-off in March 2020.
The fall came despite a 116% surge in sales in the quarter ending in June, as the post-pandemic reopening fueled luxury goods sales. Revenue more than doubled to $45 million as direct-to-consumer sales came close to tripling, beating revenue expectations by 13%.
But the specter of the resurging Delta variant pushed Canada Goose to maintain its earlier projections for 2021 results of $1 billion in revenue.
Many analysts, previously discouraged by the company’s forecasts, were disappointed yet again, especially when compared to competitors putting forth sunnier outlooks. "Lackluster" and "very cautious" were how one Wells Fargo analyst described last quarter’s projections.
Executives on the company’s earnings call said the retail environment was "improving yet evolving."
The broader luxury sector was mostly flat on Wednesday. The Amundi S&P Global Luxury ETF, which tracks an index of luxury-goods stocks, rose as much as 0.14%. The ETF’s biggest holding, LVMH, closed up 0.27%.
Canada Goose was trading at $38.33 as of 12:30 p.m. ET, down 13.75% so far during the day.
Read the original article on Business Insider

Source: https://www.businessinsider.com/canada-goose-stock-price-q1-earnings-report-revenue-profit-outlook-2021-08

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