BUSINESS
05/29/2019 12:18 EDT

Canada Goose Stock Price Crashes On Slightly Bad News

The company will grow revenue by only 20 per cent in the coming fiscal year, and not the 25 per cent analysts had been hoping for.

Mark Blinch / Reuters
Jackets hang in the showroom of the Canada Goose factory in Toronto, Feb. 23, 2018.

TORONTO — Canada Goose Holdings Inc. shares plummeted more than 26 per cent Wednesday morning on Canadian and U.S. stock markets after it released its most recent quarterly earnings.

The luxury parka company’s shares fell to $48.80 a share on the Toronto Stock Exchange as of noon ET, down around 26 per cent from the previous day’s close.

 

Colin Cieszynski, chief market strategist for SIA Wealth Management, says in a note the drop came after management forecast revenue growth of 20 per cent for the new fiscal year, which would be a slowdown from the 25 per cent it achieved in the year that just ended.

The luxury parka company says it earned C$9 million in its fourth quarter ended March 31 — up from $8.1 million in the same quarter last year.

 

The profit for the quarter amounted to eight cents per diluted share, up from seven cents per diluted share a year earlier.

Revenue for the three months totalled $156.2 million, up from $124.8 million.

On an adjusted basis, Canada Goose says it earned nine cents per diluted share in the quarter, the same as a year ago.

Analysts on average had expected a profit of six cents per share for the quarter, according to Thomson Reuters Eikon.

— With a file from HuffPost Canada.