Shares of Canada Goose Holdings Inc. are experiencing a significant downturn, the most severe in over six years. This follows disappointing earnings metrics, which have come as a surprise during what is widely considered a notably cold winter.
On Thursday, the stock traded on the Toronto Stock Exchange plummeted by as much as 24 percent, marking the steepest intraday drop since May 2019, before recovering slightly. In the U.S. market, shares dropped nearly 21 percent.
Financial analysts from Bloomberg Intelligence, Andrea Ferdinando Leggieri and Deborah Aitken, indicate that the third-quarter results are likely to downshift projections for earnings per share for 2026 and beyond.
Canada Goose announced an adjusted earnings before interest and taxes margin of 29.3 percent in this quarter, which falls short of the anticipated 32.9 percent according to Bloomberg’s analysis.
“This shortfall is unexpected, particularly considering the favorable winter conditions,” remarked BNP Paribas analyst Laurent Vasilescu in a client note.
Back in 2019, Canada Goose saw a loss exceeding a quarter of its market value following its initial revenue miss, which raised alarms about the deceleration of the company’s previous growth trajectory. That incident resulted in a 31% decline—its worst since going public in 2017.
