Barclays' financial analysts have delivered a blow to Canada Goose Holdings (GOOS), downgrading the apparel giant's stock from "equal weight" to "underweight", and further slashing their price target from $10 to $8. They have pointed towards an anticipated stiff competitive environment and geopolitical factors likely to adversely influence its performance through to 2025. Consequently, Canada Goose shares tumbled nearly 5%, reaching a new all-time low of $7.86.
Over the previous year, the value of the company's shares has dramatically decreased by around 35%. The analysts have underscored several impending challenges for Canada Goose, including economic strain, fierce rivalry from other top-tier brands, seasonal swings in revenue, and hurdles in broadening its range beyond the heavyweight down products.
Further compounding the issue, almost all of the brand's down-filled attire was made in Canada in fiscal 2024, while nearly a quarter of total sales were made in the US. The analysts suggested that U.S. business margins could potentially be squeezed by prospective tariffs imposed by the Trump administration on Canadian imports, although the executives have said they have no plans to mitigate the 25% tariff impact on finished Canadian goods, barring rearrangement of inventory stateside.