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Bull of the Day: Canada Goose (GOOS)

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Key Takeaways

  • Canada Goose is a Zacks Rank #1 stock that has doubled since hitting April lows.
  • Strong Q4 earnings and margin gains highlight DTC strength and retail execution.
  • FY26 outlook withheld, but long-term growth fueled by marketing and product expansion.

Canada Goose (GOOS - Free Report) is a Zacks Rank #1 (Strong Buy) that is a global leader in outerwear and performance luxury apparel. Best known for its cold-weather jackets as well as its premium outerwear, footwear, and accessories for men, women, and children.

The stock has doubled since its April lows and investors are now asking if it is time for profits or if the stock is just beginning its bull run.

About the Company

Canada Goose offers a wide range of high-quality products across multiple categories, including outerwear like down jackets, wind wear, fleece, vests, and performance parkas. The company has expanded into apparel with knitwear, sweats, t-shirts, and leisurewear, and sells footwear and accessories such as sneakers, boots, hats, scarves, gloves, socks, bags, hood trims, and eyewear.

Canada Goose markets its offerings under three brands: its flagship Canada Goose label, the Snow Goose line, and Baffin, which focuses on footwear and cold-weather accessories.

Canada Goose sells its products in 36 countries through direct-to-consumer, wholesale, and other channels. Its DTC segment, which includes e-commerce and branded stores, is a key driver of growth and margins. The company has a strong global presence across North America, Greater China, Asia Pacific, and EMEA.

GOOS is valued at $1.3 billion and has a Forward PE of 16. The stock has Zacks Style Scores of “A” in Growth and Value, but “F” in Momentum.

Q1 Earnings Beat

On May 21st the company posted a 44% EPS, making it the fifth straight quarter surprising to the upside. The company reported earnings per share of C$0.33, well ahead of the C$0.22 consensus estimate. Revenue came in at C$384.6 million, beating forecasts of C$366.9 million, driven largely by strength in its direct-to-consumer (DTC) channel.

Adjusted EBIT reached C$59.7 million, up from C$40.1 million a year ago, while gross margin expanded to 71.3% from 66.7%. CEO Dani Reiss credited the performance to compelling storytelling, strong execution in retail, and growing traction from its Snow Goose capsule line.

Despite the strong quarter, Canada Goose chose not to issue financial guidance for fiscal 2026, citing macroeconomic uncertainty and evolving global trade dynamics.

Still, management outlined several key growth priorities, including increased marketing investment to build brand awareness, product innovation to drive year-round relevance, and store expansion to enhance customer engagement. The company also emphasized operational agility, with a focus on improving production planning and supply chain responsiveness.

Estimates Mixed

Looking at earnings estimates, we have short term weakness followed by strength.

For both current and next quarters, analysts have taken their numbers down slightly. But looking at the current year, estimates have gone from $0.86 to $0.88, or 2%.

For next year, estimates have seen a big move higher over the last 60 days. Analysts now see $1.04 vs the $0.89, a jump of 17%.

Last week, Barclays upgraded GOOS to Equal Weight from Underweight, raising its price target to $14 from $11, citing a more balanced risk-reward profile. The firm acknowledged the company’s improved margin structure, operational discipline, and early signs of brand momentum as reasons to take a more neutral stance.

The Technical Take

The stock has doubled off the April lows, so many investors do not want to chase. However, this was a $40-50 stock in 2021, so there could be some more upside if the earnings momentum continues.

After this big run, any pullback should be considered, but let us look at some technical levels that could be solid entry points.

21-day moving average: $12

50-day MA: $10.90

200-day MA: $10.10

Looking at Fibonacci support levels the halfway back mark is $10.55 and the 61.8% Fibonacci retracement is $9.70. The sweet spot on any market sell off would be between that $9.70 level and $11.

In Summary

In conclusion, Canada Goose is showing clear signs of a turnaround, with strong earnings, improving margins, and renewed investor confidence helping to fuel a sharp rebound in the stock.

While shares have already doubled off the April lows, the long-term setup remains compelling, especially with management leaning into brand investment, product expansion, and operational execution. Near-term volatility or pullbacks could offer more attractive entry points, particularly around key technical support zones.


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