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Canada Goose (NYSE:GOOS) Flies High with New Acquisition
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Canada Goose (NYSE:GOOS) Flies High with New Acquisition

Story Highlights

Canada Goose takes a familiar supplier under its wing and advances its supply chain ambitions.

Outerwear retailer Canada Goose (NYSE:GOOS) (TSE:GOOS) hasn’t exactly had a great run of things lately. But there are some signs it’s starting to turn things around. Like a recent manufacturing purchase, for starters. And then throw in a better than 2.5% gain in its share price in Tuesday afternoon’s trading and Canada Goose looks like it’s flying high again. At least for now.

A recent move saw Canada Goose buy out Paola Confectii, a Romanian-based manufacturing operation that has been working with Canada Goose for years. Paola Confectii, reports note, focuses on high-end knitwear and has been doing so since 2017. Now that Canada Goose owns the operation outright, it can better expand its own works. Given that knitwear is such a big part of Canada Goose’s sales—it accounted for better than $70 million in fiscal 2023 alone—having the operation under its direct control just made more sense.

Protecting the Entire Supply Chain

Canada Goose, reports note, has always prided itself on its supply chain. It’s made several strategic moves to improve it over the years, and even the acquisition of Paola Confectii was directly connected to its “Strategic Growth Plan,” a concept that details how, when, and why Canada Goose should expand. That measured response to conditions on the ground should be encouraging to investors, and it seems to be doing just that, based on today’s performance. Meanwhile, Canada Goose did something a little special for Black Friday, too; it dispatched its top brass out to a variety of retailers throughout not only Canada but also into Tokyo, Zurich, and several other locations to get some perspective on how to improve sales and traffic.

Is Goose a Good Stock to Buy?

Turning to Wall Street, analysts have a Hold consensus rating on GOOS stock based on one Buy, nine Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Despite a 39% drop in its share price over the past year, the average GOOS price target of $11.13 per share implies only 2.06% upside potential.

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