Shares of Canada Goose Holdings (NYSE:GOOS)(TSE:GOOS) plunged today after it reported earnings for its third quarter of Fiscal Year 2023. Adjusted Earnings per share came in at C$1.27, which missed analysts’ consensus estimate of C$1.57 per share. Sales decreased by 1.6% year-over-year, with revenue hitting C$576.7 million. This missed analysts’ target by almost C$45 million.
The company cited COVID-19-related disruptions in China as the primary reason for this quarter’s underperformance. As a result, this has led the firm to lower its outlook.
Indeed, looking forward, management now expects revenue and adjusted earnings per share for Fiscal Year 2023 to be in the ranges of C$1.175 billion to C$1.195 billion and C$0.92 to C$1.03, respectively. For reference, analysts were expecting C$1.24 billion in revenue along with an adjusted EPS of C$1.42.
Overall, Wall Street analysts have a consensus price target of C$30 on GOOS stock, implying over 8% upside potential, as indicated by the graphic above.
