‘The shares could take a breather here’

Canada Goose stock dropped 16 per cent to end the day at $40.15 on the Toronto Stock Exchange. The shares were still trading at more than 140-per-cent above their IPO price last March, however.

The company’s lack of an updated forecast and the appointment of new chief financial officer Jonathan Sinclair likely pulled down the shares, said RBC Capital Markets analyst Brian Tunick in a note to clients.

“Given the run in the shares, no update to the annual outlook, and a new CFO announcement, the shares could take a breather here.”

Sinclair, CFO at luxury shoe brand Jimmy Choo, will replace John Black when he retires mid-year, Canada Goose said.

Camilio Lyon of Canaccord Genuity believes Canada Goose is managing its business prudently in the face of outsized consumer demand.

“This perpetuates the longevity of the brand by keeping the scarcity factor high,” Lyon wrote in a note to clients Thursday.

“Clearly, Canada Goose left sales on the table, an outcome with which the company is content, even at the expense of near-term volatility to the stock.”

The company’s net income was $62.9 million, or 56 cents per share in quarter, up from $39.1 million (38 cents), a year ago.

On an adjusted basis, Canada Goose earned 58 cents per share, beating average analyst estimates of 48 cents from Thomson Reuters.

Revenue soared 27 per cent to $265.8 million, while the company’s direct-to-consumer revenue almost doubled year over year to $131.6 million as the company continued to expand its e-commerce sites and proprietary retail stores.