Canada Goose: Cooked? Or Ready to Fly?
Amid global economic shutdowns, Canada Goose (NYSE: GOOS) has struggled to find its footing. Like so many retailers counting on foot traffic and fat pockets to meet sales targets, pain resulting from widespread quarantine is real. Since the coronavirus pandemic began early this year, the stock has seen an abrupt 40% price hit.
Canada Goose's reliance on China and parts of Europe to generate revenue has grown more fragile with the pandemic; future global consumer spending is far from certain. While this should hurt short term sales, other luxury brands like Apple are already seeing a sales rebound in China. Like most luxury brands, the Apple brand enjoys high demand elasticity. While not a directly comparable clothing product, it is still encouraging to see other expensive brands coping with tough times. This offers us some hope other parts of the world can follow a similar trend.
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Source Fool.com
