Canada Goose (TSX:GOOS)(NYSE:GOOS) is a premier winter clothing designer, manufacturer, and retailer. Shares have dropped 17.8% in 2019 as of close on November 22.
The stock has slipped 43% year over year. Canada Goose kicked off its initial public offering with a bang, even as naysayers warned of the volatility of clothing stocks in this retail environment.
This did nothing to slow down momentum for Canada Goose stock as it soared on the back of fantastic domestic and international sales. The stock hit an all-time high before disaster hit in December 2018. A geopolitical spat between Canada and China spooked investors, and Canada Goose stock has still not recovered.
The opening of its Beijing store went well, even in the face of rising tensions. However, the second quarter of fiscal 2020 was not so kind to Canada Goose. Unrest in Hong Kong has hurts it business there as wholesale revenue is set to post a decline in the third quarter.
However, global revenue still rose 28% year-over-year to $294 million in Q2 FY2020. Demand in China has remained strong, and its presence in Asia is still a strong point. Management did not change its revenue guidance for the full year.
Shares of Canada Goose have nearly halved from its all-time high of $92.35 last December. Investors in this stock are betting on growth as it boasts a high P/E ratio of 38 and a P/B value of 13. The latest news is not encouraging, but I still like what Canada Goose is doing on the global front.
Iām looking for a more attractive entry point ahead of the New Year.
