Canada Goose Holdings (TSE: GOOS) (NYSE: GOOS) cut its full-year revenue and profit forecast on Thursday as Omicron restrictions dampen demand for the company’s parkas and luxury footwear.
Revenue & Earnings
Revenue for Q3 2022 came in at C$586.1 million, an increase of 26.5% from C$474 million. Global e-commerce revenue rose 28.1%.
DTC revenue rose 48.8% to C$445.4 million, driven by higher sales from existing retail stores, e-commerce growth, and store openings. DTC revenue in Mainland China increased by 35.1%.
Wholesale revenue decreased 15% to C$136.7 million due to an earlier shipment timing relative to fiscal 2021.
Net income amounted to C$151.9 million (C$1.41 per diluted share) in Q3 2022, compared to C$107 million (C$0.96 per diluted share) in Q3 2021.
Non-IRFS adjusted net income was C$152.6 million (C$1.42 per diluted share) in the quarter, up from C$111.9 million (C$1.01 per diluted share) a year ago.
The Toronto-based company now expects revenue for fiscal 2022 to be between C$1.090 billion and C$1.105 billion, down from an earlier estimate of between C$1.125 billion and C$1.175 billion.
Canada Goose expects adjusted earnings for fiscal 2022 to be between C$1.02 and C$1.11 per share, down from its previous guidance of between C$1.17 and C$1.33.
CEO Commentary
Canada Goose president and CEO Dani Reiss said, “Canada Goose’s brand momentum and supply chain resilience drove a strong performance in our largest quarter. Our digital business continued to exceed last year’s outsized gains, alongside a sharp improvement in retail productivity. We remain confident in our long-term trajectory for revenue growth and margin expansion, notwithstanding the emergence of temporary and unexpected COVID-19 disruptions in certain markets.”
Wall Street’s Take
Two days ago, Evercore ISI analyst Omar Saad kept a Buy rating on GOOS with a price target of C$88.78. This implies 140% upside potential.
The rest of the Street is bullish on GOOS with a Strong Buy consensus rating based on six Buys and two Holds. The average Canada Goose price target of C$65.30 implies upside potential of 76.5% to current levels.
TipRanks’ Smart Score
GOOS scores an 8 out of 10 on the TipRanks Smart Score rating system, indicating that the stock returns should beat the overall market.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Related News:
SSP Sales Drop Due to Omicron Restrictions
Flow Beverage FY2021 Revenue Rises 86%; Shares Pop
Fever-Tree 2022 Outlook Hampered by Costs; Shares Plunge
