Oliver Chen, an analyst from TD Cowen, maintained the Hold rating on Canada Goose Holdings (GOOS – Research Report). The associated price target remains the same with $11.00.
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Oliver Chen’s rating is based on a combination of factors impacting Canada Goose Holdings. The company’s third-quarter revenue fell short of expectations, primarily due to weaker than anticipated performance in their direct-to-consumer segment. This underperformance led management to lower their EBIT expectations for the fourth quarter, reflecting challenges in their global retail channels.
Additionally, despite strategic initiatives like the partnership with Haider Ackermann and efforts to enhance store productivity, the brand’s turnaround is expected to be a gradual process with potential sales volatility. The company faces risks such as the impact of tariffs given the current political climate, and currency fluctuations affecting sales in major markets like Canada, the United States, and China. While there are positive signs, such as growth in the Asia Pacific region excluding China, the uncertainties and need for operational improvements justify the Hold rating.
Chen covers the Consumer Cyclical sector, focusing on stocks such as Sally Beauty, Tapestry, and Capri Holdings. According to TipRanks, Chen has an average return of 6.7% and a 53.01% success rate on recommended stocks.