Is Canada Goose Cooked?

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Shares of Canada Goose Holdings  (GOOS) - Get Report fell on Tuesday after the luxury coat maker reported a wider-than-expected fiscal first-quarter loss amid a steep drop in demand for its high-end down-filled coats.

The Toronto-based company posted an adjusted loss of C$38.4 million ($28.8 million), or 35 cents a share, in its fiscal first quarter vs. an adjusted loss of C$22.8 million, or 21 cents a share, in the comparable year-earlier period. Analysts polled by FactSet had been expecting a loss of 31 cents a share.

Revenue came in at C$26.1 million, higher than the C$15.3 million expected by analysts polled by FactSet but still well below last year’s C$71.1 million. Wholesale revenue rang in at C$8.7 million, down from C$35.6 million a year ago due to “a significant reduction in shipments due to Covid-19 disruptions to partner operations,” specifically to Asia.

While the company pointed to prevailing global uncertainties, including the potential for second wave outbreaks, as well as soft demand for parkas in the summer months, it did note that it continues to hold a strong liquidity and cash position “…to provide extensive coverage against ongoing external uncertainties," it said. 

Investors are less optimistic, however. Shares of Canada Goose have fallen more than 30% since the start of the year and are down some 45% over the past 12 months.

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