Canada Goose Stock Plummets After FY22 Outlook Cut

Canada Goose Holdings Inc GOOS reported third-quarter FY22 sales growth of 23.6% year-on-year, to C$586.1 million.
- Global e-Commerce revenue increased by 28.1% Y/Y. DTC revenue grew 48.8% Y/Y, and wholesale revenue decreased 15%.
- Gross profit rose 30.8% Y/Y to C$413.8 million, with the margin expanding 380 basis points to 70.6%.
- The operating margin expanded 280 basis points Y/Y to 35.1%, and the operating income rose 34.3% Y/Y to C$205.9 million.
- Non-IFRS adjusted EBIT was C$206.9 million, with an adjusted EBIT margin of 35.3%.
- Non-IFRS adjusted EPS was C$1.42 versus C$1.01 last year.
- The company held C$407.6 million in cash and equivalents as of January 2, 2022. Inventory was C$368.1 million as of January 2, 2022.
- Outlook: Canada Goose has lowered FY22 adjusted EPS guidance to C$1.02 – C$1.11 from C$1.17 – C$1.33.
- The company also slashed the FY22 sales outlook to C$1.09 billion – C$1.105 billion from C$1.125 billion – C$1.175 billion.
Price Action: GOOS shares traded lower by 15.3% at $29.07 on the last check Thursday.

Momentum24.95

Growth44.03

Quality23.78

Value73.19

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