Canada Goose Stock: Should You Buy in June?


Canada Goose (TSX:GOOS)(NYSE:GOOS) has become a household name over the past decade. The maker of high-end winter clothing gained momentum in the 2010s as a highly sought-after luxury fashion item. During this time, it has maintained an aura of excellence when it comes to providing utilitarian winter clothing.

This Toronto-based apparel maker released its fourth-quarter fiscal 2022 results on May 19. Total revenue increased 6.8% year over year to $223 million. Canada Goose reported direct-to-consumer (DTC) revenue growth of 8% to $185 million. It saw improved revenue at its existing stores, but experienced a decline in e-commerce revenue. Additionally, wholesale revenue jumped 3.5% to $35.1 million.

The company reported gross profit of $154 million and a gross margin of 69.1%, compared to $138 million or 66.4% a year earlier. For the full year, total revenue reached $1.09 billion from $903 million in fiscal 2021. At the same time, adjusted EBIT increased to $174 million from $132 million. dollars and adjusted net income was $119 million compared to $86.2 million the previous year.

Canada Goose has unveiled its outlook for fiscal year 2023 in its latest report. It projects total revenues between $1.3 billion and $1.4 billion. Additionally, it forecast non-IFRS adjusted EBIT between $250 million and $290 million and adjusted net earnings per diluted share between $1.60 and $1.90. The company is still on track for strong earnings growth going forward. In the meantime, it offers solid value at the time of this writing.


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