Canada Goose Reflects Tailwinds, Gets Downgraded Along With Peloton And VF Corp

While shares in the apparel, footwear and fitness segment have risen year to date, consumer spending may soften and companies could miss 2023 consensus estimates, according to Baird.

The Downgrades: Analyst Jonathan Komp downgraded the ratings for Canada Goose Holdings Inc GOOS, Peloton Interactive Inc PTON and VF Corp VFC from Outperform to Neutral.

“Better-than-feared Q4 pre-announcements, positive January signals, past-peak inventory, and other sources of optimism (China reopening, weaker USD) have spurred recent risk appetite (2022 laggards, higher shorted stocks outperforming),” Kom wrote.

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“We project C2023E/C2024E EPS well below consensus embedding macro-related concerns, and are using strength to reduce several low-conviction near-term ideas,” he added.

• The Canada Goose Thesis: The stock valuation reflects tailwinds from “a full return of global Chinese consumer spending, straight-line margin recovery, and favorable updates with the upcoming February 7 investor day,” Komp wrote.
• The Peloton Interactive Thesis: The analyst lowered the price target from $14 to $12, while adding that the macro environment could cause the company to “guide FQ3E (March) below consensus and lengthen the time needed to restore healthy profitability.”
• The VF Corp Thesis: There are macroeconomic headwinds and external pressures that could “lengthen the time needed to drive better financial performance, Komp said in the note.

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Image Courtesy of Canada Goose