This Retail Stock Doesn't Have Walmart's or Target's Problems
Many retail companies have been struggling this year. They've gone from having too much demand and not enough supply a year ago to now having too much inventory. Inflation and rising labor costs are also putting a damper on margins. Big-name retailers including Walmart (NYSE: WMT) and Target (NYSE: TGT) could be facing a tough year ahead.
One underdog that could be a surprisingly resilient business to invest in is Canada Goose Holdings (NYSE: GOOS). The company's business model is different from many big-box retailers, and that could make its stock an underrated one to invest in this year.
Canada Goose prides itself on making quality winter wear. That means it isn't looking to make the cheapest product possible in order to keep prices low the way a Target or Walmart might. There's no better way to demonstrate that than by looking at their vastly different gross margins:
Source Fool.com
