Why Canada Goose Is On My Watch List

Canada Goose (TSX:GOOS) recently reported it expects to see "negligible" revenue in this most recent quarter, due mainly to the impacts of the COVID pandemic. As primarily a bricks and mortar retailer, with heavy exposure in China, Canada Goose is among the hardest hit consumer-focused fashion retailers on the market today.

The company’s stock price has taken a sharp hit, and many believe more pain could be on the horizon. I have been bullish on Canada Goose’s ability to leverage its brand to keep margins elevated and generate much higher than average growth over the long-term when compared to its peers.

However, I do agree that this pandemic is pretty hard to ignore from an earnings and revenue standpoint, at least in the short-term.

While this is most definitely a highly economically sensitive stock, I do think there is potential for Canada Goose to have a sharper rebound than what is otherwise being priced into Canada Goose’s share price today.

The company has already seen some sales increase recently. With more locations set to open continuously as various markets put forward reopening plans, we are likely to see major incremental improvement each quarter from here on out. This is not a stock without risk, and for that reason it remains on my watch list rather than my buy list.

Invest wisely, my friends.