The Canadian economy is one which is very resource and export-intensive, making the company I’m about to point out perhaps not the first company to come to mind with respect to the negative economic impacts of tragic coronavirus outbreak that has ravished parts of China.
Canada Goose (TSX:GOOS) has come out and publicly announced that coronavirus will have a material effect on the company’s growth, with the luxury retailer revising its growth projections down from 20% to 15% this year.
These growth projection reductions are significant, and the fact that Canada Goose identified coronavirus and the slowdown in China as key factors in this downward revision shows just how important the Chinese market is for sales of luxury goods like Canada Goose products.
I’ve been bullish on Canada Goose for this reason, and I think this coronavirus outbreak, tragic as it is, represents a buying opportunity for investors who are able and willing to wait out the storm.
Canada Goose’s growth potential outside of North America is substantial, and I don’t feel as though the full value is baked into the company’s share price at this point in time, making this a potential buying opportunity.
We still don’t know just how bad this whole ordeal could end up being, but at the end of the day, investors need to make a decision as to whether they believe such a scare will be a long-term event or not.
As with most outbreaks, my take on this virus is that it is a great lesson for young investors who may not have seen this before, to get experience in how to deal with, and profit from whatever opportunities are afforded from the aftermath.
Canada Goose is a great brand with lots of potential and a long runway for growth, making this a great candidate to be added to for your portfolio
Invest wisely, my friends.
