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After IPO, Canada Goose (GOOS) Stock Continues to Gain
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On Friday, shares of luxury parka maker Canada Goose Holdings Inc. (GOOS - Free Report) are gaining, up around 5.5% in midday trading the day after its successful IPO. The stock opened yesterday at $18 per share on the New York Stock Exchange, and is also trading on the Toronto Stock Exchange.
Canada Goose initially priced its IPO of 20 million shares at CA$17, or roughly US$12.78 per share, above the expected range of between CA$14 and CA$16 per share. GOOS stock closed the day up more than 25%, slightly higher than US$16, raising about $255 million and marking the second biggest IPO of 2017, behind Snap Inc. (SNAP - Free Report) .
While its IPO was a huge win for the company, Canada Goose will need to prove to investors that it can grow. In 2016, it reported revenues of $291 million, and $103 million of that number can from U.S. consumers. Canada Goose also reported gross profit of $146 million and net income of $27 million for the same year.
Growth Potential
A particular growth hurdle—and a risk the company even listed in its prospectus to potential investors—are protestors. Canada Goose, known for its $1,000 parkas with fur-trimmed hoods, was confronted with protesters from People for the Ethical Treatment of Animals (PETA) on Thursday, who stood outside both the NYSE and the TSX wearing coyote masks and waving signs that read, among other things, “Indecent Public Offering” and “Trading in Lives is Bad for Business.”
"We have been the target of activists in the past, and may continue to be in the future. Our products include certain animal products, including goose and duck feathers in all of our down-filled parkas and coyote fur on the hoods of some of our parkas, which has drawn the attention of animal welfare activists,” the company said in its prospectus with the SEC.
Canada Goose created a program that traces where its materials are sourced from, with a lengthy page on its website dedicated to its decision to use both ethically sourced fur and down.
But PETA is using one of its “classic activist tactics”: buying the minimum amount of shares required to take part in a company’s shareholder meetings. The group has done this before with companies like Lululemon Athletica (LULU - Free Report) and Prada, which use exotic animal skins in their products.
Interested in other retail news? Check out the latest episode of Zacks Shopping for Stocks, where host Maddy Johnson previews Canada Goose’s IPO:
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After IPO, Canada Goose (GOOS) Stock Continues to Gain
On Friday, shares of luxury parka maker Canada Goose Holdings Inc. (GOOS - Free Report) are gaining, up around 5.5% in midday trading the day after its successful IPO. The stock opened yesterday at $18 per share on the New York Stock Exchange, and is also trading on the Toronto Stock Exchange.
Canada Goose initially priced its IPO of 20 million shares at CA$17, or roughly US$12.78 per share, above the expected range of between CA$14 and CA$16 per share. GOOS stock closed the day up more than 25%, slightly higher than US$16, raising about $255 million and marking the second biggest IPO of 2017, behind Snap Inc. (SNAP - Free Report) .
While its IPO was a huge win for the company, Canada Goose will need to prove to investors that it can grow. In 2016, it reported revenues of $291 million, and $103 million of that number can from U.S. consumers. Canada Goose also reported gross profit of $146 million and net income of $27 million for the same year.
Growth Potential
A particular growth hurdle—and a risk the company even listed in its prospectus to potential investors—are protestors. Canada Goose, known for its $1,000 parkas with fur-trimmed hoods, was confronted with protesters from People for the Ethical Treatment of Animals (PETA) on Thursday, who stood outside both the NYSE and the TSX wearing coyote masks and waving signs that read, among other things, “Indecent Public Offering” and “Trading in Lives is Bad for Business.”
"We have been the target of activists in the past, and may continue to be in the future. Our products include certain animal products, including goose and duck feathers in all of our down-filled parkas and coyote fur on the hoods of some of our parkas, which has drawn the attention of animal welfare activists,” the company said in its prospectus with the SEC.
Canada Goose created a program that traces where its materials are sourced from, with a lengthy page on its website dedicated to its decision to use both ethically sourced fur and down.
But PETA is using one of its “classic activist tactics”: buying the minimum amount of shares required to take part in a company’s shareholder meetings. The group has done this before with companies like Lululemon Athletica (LULU - Free Report) and Prada, which use exotic animal skins in their products.
Interested in other retail news? Check out the latest episode of Zacks Shopping for Stocks, where host Maddy Johnson previews Canada Goose’s IPO:
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>