Canada Goose Gets Cooked After Cutting Full-Year Forecast

The outerwear manufacturer's earnings and revenue topped expectations, however

Digital Content Manager
Nov 2, 2022 at 9:22 AM
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Shares of outerwear manufacturer Canada Goose Holdings Inc (NYSE:GOOS) are plummeting in premarket trading, following the company's fiscal second-quarter earnings report. While Canada Goose's earnings and revenue for the quarter topped analysts' estimates, the company slashed its full-year revenue and profit forecast after noting a drop in parka sales in China amid Covid-19 restrictions. 

At last check, GOOS is down 8.2% to trade at $15.06, as it threatens to eclipse its Sept. 30, two-year low of $15.08. The stock has chopped lower for the better part of this year, with its August breakout rejected by the 160-day moving average. Year-to-date, Canada Goose stock is down over 55%. 

Analysts have yet to chime in, but sentiment was mixed coming into today. Of the eight in coverage, four say "strong buy" and four say "hold" or worse. Meanwhile, short sellers have been targeting the stock in droves. Short interest is up 33.4% in the last two reporting periods and makes up 16.6% of the stock's available float. 

Options traders were slightly more bullish ahead of Canada Goose's earnings event. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity sports a 10-day call/put volume ratio of 1.40, which sits higher than 67% of readings from the past year. This means calls are getting up at a quicker-than-usual clip. 


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