Canada Goose Unlikely to Deliver Big Catalyst With Q2 Results, UBS Says

MT Newswires Live00:59

Canada Goose Holdings' (GOOS) Q2 report is unlikely to move the stock much as expectations already reflect weak luxury demand and tariff risks, UBS said in a preview note Tuesday.

UBS expects a broadly in-line quarter and sees FY27 guidance maintained, given about 75% of revenue is weighted to the second half. Weak luxury trends and the 50% tariff on Canadian apparel pose downside risk to guidance, the broker said, but with the stock near roughly 10x earnings, those risks are largely priced in.

UBS Evidence Lab and industry data gave mixed signals, with website traffic and search interest improving in the US and UK, while China GMV declined at a mid-double-digit rate from July through September.

UBS lowered its FY27-FY29 EPS estimates by 3%-4% on the data and the continued tariff overhang.

UBS maintained its neutral rating, and lowered its price target to $9 from $10.50, mainly by trimming its valuation multiple by 1x to about 10x on luxury sector and China weakness.

Price: 7.70, Change: -0.38, Percent Change: -4.70

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