Canada Goose Stock Jumps 20% On Strong Earnings

Canada Goose (GOOS) stock is up 20% after the luxury parka maker reported strong quarterly financial results and said it is seeing minimal impacts from tariffs. The Toronto-based company said it earned $0.28 per share for the quarter ended March 30, up from a profit of $0.05 a year earlier.Revenue for the quarter totalled $384.6 million, up from $358 million a year ago. Management described the quarter as “notably stronger.”Analysts were looking for earnings of $0.23 and revenue of $356.4 million for the calendar first quarter. During their earnings call with media and analysts, executives at Canada Goose said that tariffs are having little impact on the business. The company has avoided tariff impacts because 75% of its products are made domestically and comply with the existing Canada-U.S.-Mexico Agreement on trade.That means Canada Goose’s goods are largely exempt from U.S. tariffs.“Our remaining production, which is primarily from Europe, is facing an increase in tariffs, but they will have minimal financial impact,” said Canada Goose Chief Operating Officer (COO) Beth Clymer on the call with analysts.However, tariff and trade uncertainty is still great enough that Canada Goose is withholding its guidance for the remainder of the current fiscal year.To manage any tariff risks, Canada Goose is implementing a new four-part plan. It plans to double down on marketing, tweak Canada Goose’s product mix, expand its business through new store openings, and find internal efficiencies. Canada Goose is branching out beyond its signature down-filled winter coats and into new products such as fleeces, T-shirts, and polo shirts.Even with the big post-earnings pop, Canada Goose’s stock is still down 22% over the past year and trading at $14.79 per share on the Toronto Stock Exchange.