Shares of Canada Goose Holdings Inc. (TSX:GOOS)(NYSE:GOOS) moved up midway through the noon hour on August 28. The stock increased 2.65% priced at $22.46. The company released its fiscal first quarter earnings for 2018 on August 10. Direct-to-consumer sales surged sixfold to $8.3 million and wholesale business grew 38.2% to $19.9 million. The company is planning to open stores in London and Chicago as planned this year, as well as in Tokyo, Boston, and Calgary in the near future.
The stock has risen 3.7% since its initial public offering in mid-March. Shares moved up steadily on investor enthusiasm and after a fourth quarter earnings report that saw lower-than-expected losses Canada Goose shot up to $32.80. It has since seen a steady decline from these high prices in part due to investors fleeing riskier assets in the face of geopolitical tensions and economic uncertainty.
Canada Goose also announced that it was launching a series of knitwear to add to its fall collection. The company is known for its premium winter jackets but has made it clear that it intends to branch out to other seasonal wear. The knitwear will run up to $650 per item and will be made in Italy. Knitwear has outpaced winter wear in market trends so it stands to reason that Canada Goose would seek to move into this area as well.
After a prolonged slump the stock may start to see some momentum heading into the fall and winter seasons and on the back of two straight earnings reports that beat expectations.
