Canada Goose shares fall more than 20% on slower revenue growth guidance
Posted May 29, 2019 7:17 am.
Last Updated May 29, 2019 11:12 am.
TORONTO — Canada Goose Holdings Inc. shares plummeted more than 20 per cent this morning on Canadian and U.S. stock markets after it released its most recent quarterly earnings.
The luxury parka company’s shares fell $15.30 or 22.96 per cent to 51.33 on the Toronto Stock Exchange and dropped US$11.04 or 22.54 per cent to US$37.95 on the New York Stock Exchange in early Wednesday trading.
Colin Cieszynski, chief market strategist for SIA Wealth Management, says in a note the drop came after management forecast revenue growth of 20 per cent for the new fiscal year, which would be a slowdown from the 25 per cent it achieved in the year that just ended.
The luxury parka company says it earned C$9 million in its fourth quarter ended March 31 — up from $8.1 million in the same quarter last year.
The profit for the quarter amounted to eight cents per diluted share, up from seven cents per diluted share a year earlier.
Revenue for the three months totalled $156.2 million, up from $124.8 million.
On an adjusted basis, Canada Goose says it earned nine cents per diluted share in the quarter, the same as a year ago.
Analysts on average had expected a profit of six cents per share for the quarter, according to Thomson Reuters Eikon.
Companies in this story: (TSX:GOOS)
