Analysts have raised their price target for Canada Goose to CA$17.75, citing improved brand momentum, better inventory management, and encouraging sales trends offsetting near-term profitability concerns from ongoing investments.
Analyst Commentary
- Bullish analysts note that higher costs and sales risks are now well reflected in the share price following Q2 results.
- Encouraging back-to-school spending trends and expectations for improved macroeconomic conditions and investor sentiment into 2026.
- Improved product lineup, focused merchandising, and enhanced marketing investments are driving better brand momentum.
- Bearish analysts express disappointment over ongoing investments intended to drive sales, which may weigh on near-term profitability.
- Operational improvements, "clean" inventory, and limited tariff exposure due to Canadian manufacturing provide some margin protection and reduce risk.
What's in the News
- Bain Capital, controlling shareholder of Canada Goose, is exploring a partial or full sale of its stake and has engaged advisers; discussions are preliminary with potential interest from other private equity buyers.
- Company completed no share buybacks in the most recent tranche, with a total repurchase of 0 shares for CAD 0 million under the announced program.
- Canada Goose launched the second seasonal capsule under creative director Haider Ackermann, introducing the Snow Goose collection featuring lightweight summer outerwear and a global campaign led by Lara Stone.
- An arbitrator awarded approximately USD 30 million to a former vendor related to a 2021 contract dispute, resulting in a one-time financial charge; Canada Goose is contesting the award and states it will not materially alter its long-term outlook.
Valuation Changes
Summary of Valuation Changes for Canada Goose Holdings
- The Consensus Analyst Price Target has risen from CA$16.53 to CA$17.75.
- The Consensus Revenue Growth forecasts for Canada Goose Holdings has significantly fallen from 4.8% per annum to 4.2% per annum.
- The Future P/E for Canada Goose Holdings has risen from 23.84x to 25.28x.
Disclaimer
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