What Does The Future Hold For Canada Goose Holdings Inc. (TSE:GOOS)? These Analysts Have Been Cutting Their Estimates

The latest analyst coverage could presage a bad day for Canada Goose Holdings Inc. (TSE:GOOS), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the latest consensus from Canada Goose Holdings' eleven analysts is for revenues of CA$1.3b in 2024, which would reflect a satisfactory 3.5% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to swell 14% to CA$0.61. Before this latest update, the analysts had been forecasting revenues of CA$1.4b and earnings per share (EPS) of CA$1.04 in 2024. Indeed, we can see that the analysts are a lot more bearish about Canada Goose Holdings' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Canada Goose Holdings

It'll come as no surprise then, to learn that the analysts have cut their price target 26% to CA$18.19.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Canada Goose Holdings' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Canada Goose Holdings' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 9.7% over the past five years. Compare this to the 7 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.4% per year. So it's pretty clear that, while Canada Goose Holdings' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Canada Goose Holdings' future valuation. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Canada Goose Holdings going forwards.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Canada Goose Holdings' business, like its declining profit margins. For more information, you can click here to discover this and the 1 other risk we've identified.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.