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GOOS enters earnings at a crossroads after a strong rebound from 2025 lows.
A 150% EPS miss last quarter and continued estimate cuts pressure the bull case.
Trading near key moving averages, GOOS risks a technical breakdown if earnings disappoint again.
Canada Goose (GOOS - Free Report) is a Zacks Rank #5 (Strong Sell) that is a global premium outerwear company best known for high-end down jackets. The company designs, manufactures, and sells performance luxury apparel, footwear, and accessories for men, women, and children.
About the Company
Canada Goose Holdings was founded in 1957 and headquartered in Toronto, Canada. The company designs, manufactures, and sells performance luxury apparel, footwear, and accessories under the Canada Goose, Snow Goose, and Baffin brands.
Canada Goose sells through a mix of direct-to-consumer channels and wholesale partners, including company owned retail stores and e-commerce, and operates in 36 countries across North America, Greater China, Europe, the Asia Pacific, the Middle East, and Africa.
The company has a market cap over $1.2B, with a Zacks Style Score of “F” in Growth and “D” in Value.
Q2 Earnings Miss
Canada Goose’s November Q2 report disappointed the market, highlighted by a roughly 150% EPS miss, with adjusted EPS of minus C$0.14 versus expectations of minus C$0.08. Revenue of C$272.6 million also fell short of the C$292.4 million estimate, while adjusted EBIT swung to a loss of minus C$14.2 million from a profit of C$2.5 million a year earlier.
Offsetting some of the headline weakness, direct to consumer revenue rose 20.5 percent year over year to C$126.6 million on a constant currency basis, driving gross margin expansion to 62.4 percent from 61.3 percent due to a richer DTC mix.
Management emphasized strong DTC performance and positive comparable sales growth, noting the company was executing as planned and entering the peak season with confidence.
Earnings Estimates Drop
Earnings are on February 5th and analysts have been lowering numbers into the print.
Over the last 90 days, earnings estimates have been lowered to $1.14 from $1.21, or 6%. For next quarter, estimates have dropped about 10%.
Looking at next year, estimates have been lowered from $1.18 to $0.79 over the last 90 days. This is a drop of 33% and certainly not the direction investors want to see as we head into earnings.
Technical Take
The stock is well off the 2025 lows, up over 100% from that bottom. So the question for investors is if the upcoming quarter starts another downward trend or if the company can surprise with a beat, and resume the upward momentum from last year.
This is likely a consequential quarter that sets price direction over the next year for this stock. Right now, GOOS traded right at the 200-day MA and slightly below the 50-day.
Another dismal quarter and the technical support will break and bears will look to fill the gap from the 5/20/25 EPS up move. This is $9 or roughly 30% below current trading levels.
In Summary
Canada Goose is a global premium outerwear brand facing mounting pressure heading into earnings. Despite a well known luxury brand and expanding direct to consumer mix, the company carries a Zacks Rank #5 Strong Sell, weak Growth and Value scores, and falling estimates.
Technically, the stock has rebounded sharply from 2025 lows and now sits near key moving averages, making the upcoming earnings a pivotal catalyst that could either restart downside momentum or confirm a sustained recovery.
For now, investors looking at the Retail/Apparel space, should turn to American Eagle Outfitters (AEO - Free Report) . The stock is a Zacks Rank #1 (Strong Buy) that showed strong momentum to the upside.
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Bear of the Day: Canada Goose (GOOS)
Key Takeaways
Canada Goose (GOOS - Free Report) is a Zacks Rank #5 (Strong Sell) that is a global premium outerwear company best known for high-end down jackets. The company designs, manufactures, and sells performance luxury apparel, footwear, and accessories for men, women, and children.
About the Company
Canada Goose Holdings was founded in 1957 and headquartered in Toronto, Canada. The company designs, manufactures, and sells performance luxury apparel, footwear, and accessories under the Canada Goose, Snow Goose, and Baffin brands.
Canada Goose sells through a mix of direct-to-consumer channels and wholesale partners, including company owned retail stores and e-commerce, and operates in 36 countries across North America, Greater China, Europe, the Asia Pacific, the Middle East, and Africa.
The company has a market cap over $1.2B, with a Zacks Style Score of “F” in Growth and “D” in Value.
Q2 Earnings Miss
Canada Goose’s November Q2 report disappointed the market, highlighted by a roughly 150% EPS miss, with adjusted EPS of minus C$0.14 versus expectations of minus C$0.08. Revenue of C$272.6 million also fell short of the C$292.4 million estimate, while adjusted EBIT swung to a loss of minus C$14.2 million from a profit of C$2.5 million a year earlier.
Offsetting some of the headline weakness, direct to consumer revenue rose 20.5 percent year over year to C$126.6 million on a constant currency basis, driving gross margin expansion to 62.4 percent from 61.3 percent due to a richer DTC mix.
Management emphasized strong DTC performance and positive comparable sales growth, noting the company was executing as planned and entering the peak season with confidence.
Earnings Estimates Drop
Earnings are on February 5th and analysts have been lowering numbers into the print.
Over the last 90 days, earnings estimates have been lowered to $1.14 from $1.21, or 6%. For next quarter, estimates have dropped about 10%.
Looking at next year, estimates have been lowered from $1.18 to $0.79 over the last 90 days. This is a drop of 33% and certainly not the direction investors want to see as we head into earnings.
Technical Take
The stock is well off the 2025 lows, up over 100% from that bottom. So the question for investors is if the upcoming quarter starts another downward trend or if the company can surprise with a beat, and resume the upward momentum from last year.
This is likely a consequential quarter that sets price direction over the next year for this stock. Right now, GOOS traded right at the 200-day MA and slightly below the 50-day.
Another dismal quarter and the technical support will break and bears will look to fill the gap from the 5/20/25 EPS up move. This is $9 or roughly 30% below current trading levels.
In Summary
Canada Goose is a global premium outerwear brand facing mounting pressure heading into earnings. Despite a well known luxury brand and expanding direct to consumer mix, the company carries a Zacks Rank #5 Strong Sell, weak Growth and Value scores, and falling estimates.
Technically, the stock has rebounded sharply from 2025 lows and now sits near key moving averages, making the upcoming earnings a pivotal catalyst that could either restart downside momentum or confirm a sustained recovery.
For now, investors looking at the Retail/Apparel space, should turn to American Eagle Outfitters (AEO - Free Report) . The stock is a Zacks Rank #1 (Strong Buy) that showed strong momentum to the upside.