Why Canada Goose Stock Plunged 21% at the Open Today
Shares of Canada Goose (NYSE: GOOS), a producer and retailer of winter coats and other cold-weather apparel, fell sharply at the open on Thursday, losing roughly 21% of their value in the first few minutes of trading. The decline moderated somewhat as the session progressed: As of 10:55 a.m., the shares were down by about 15.5%.
The big news here was its fiscal 2022 third-quarter earnings update, which it delivered before the market opened. Investors weren't pleased, but it's not like the news was completely terrible, either.
For the period, which ended Jan. 2, Canada Goose reported revenues of just over 586 million Canadian dollars. An extra week in the quarter compared to 2021's Q3 boosted that figure by nearly CA$41 million, but even so, sales were up notably from the CA$474 million achieved in the prior-year period. The problem is that Wall Street analysts had been expecting an even higher number. The same story took shape on the bottom line, with adjusted earnings per share of CA$1.42 compared to CA$1.01 in fiscal 2021's third quarter. A nice improvement, but below the analysts' consensus call. Investors don't like it when companies miss analysts' estimates, so it's not surprising that the stock fell.
Source Fool.com
