Shares of apparel maker Canada Goose (GOOS) - Get Canada Goose Holdings, Inc. Report were higher after the producer of fashion winter coats said the board approved a buyback of nearly 6 million, or 10%, of its subordinate voting shares outstanding.
The Toronto company said it would buy back and cancel the shares over a year beginning Aug. 20.
The company plans to use cash on hand to fund the repurchase. Canada Goose has not repurchased any shares under a normal course issuer bid in the past 12 months.
It plans to buy back the stock through the Toronto Stock Exchange, the New York Stock Exchange or "alternative trading systems," on the open market or via other means.
Canada Goose shares at last check were rising 1.3% to $35.50.
Last week, the stock dropped after the company reported a disappointing gross margin for the quarter ended June 27 and mixed sales guidance for the current quarter.
In the fiscal 2022 first quarter, gross margin was 55%. For the second quarter, Canada Goose estimates low double-digit wholesale-revenue growth and direct-to-consumer revenue of roughly 1.5 times last year’s level.
On its earnings-related conference call with analysts and investors, the company also predicted flat gross margin for the full fiscal year, Bloomberg reports.
In June, Canada Goose said it would stop using animal fur in all its products, as animal-rights activists have urged for years.
The Toronto company said it would end fur purchases by year-end and cease manufacturing with fur by the end of 2022.