By
Bloomberg
Published
Nov 2, 2023
Canada Goose Holdings Inc. shares extended their longest ever losing streak, falling for an 11th day, after the luxury parka retailer slashed its fiscal year earnings outlook, citing macroeconomic pressure.
The stock hit a fresh intra-day low on Wednesday at C$13.60 ($9.80) after the company reduced its fiscal year total revenue forecast to a range between C$1.2 billion and C$1.4 billion, short of the C$1.42 billion that analysts had expected on average. The company’s previous range was C$1.4 billion to C$1.5 billion.
Management also halved the lower end of the company’s earnings expectations, reducing to a range of C$0.60 and C$1.40 per share as it adjusts to what it called a “challenging retail environment.” Canada Goose managed to earn an adjusted C$0.16 per share, beating out the loss of C$0.22 per share Bloomberg analysts were expecting.
CIBC Capital Markets analyst Mark Petrie said in a note to clients that management “didn’t give any color around October trends,” but he expected the momentum slowdown would continue.
October was a challenging month for Canada Goose, with shares sliding by about 23% as weaker economic reports in China, a major market for the retailer, added to concerns about the company’s sales. Analysts were also wary of warmer-than-usual winter weather forecasts, and firms like TD Securities and Wells Fargo downgraded the retailer’s shares.
The company also said it is promoting Neil Bowden to chief financial officer from a deputy CFO role, effective April 1, 2024. The current CFO, Jonathan Sinclair, will become president of the Asia Pacific operations.
Shares fell as much as 11.6% in early Toronto trading on Wednesday.
