Friday, September 22 marks the first official day of autumn in Canada. The cooler weather means that Canadians will have to start thinking about bundling up and preparing for the winter months. Today, I want to look at a winter clothing company that has garnered considerable hype since it debuted its stock on the TSX in March 2017.
Canada Goose (TSX:GOOS)(NYSE:GOOS) is a Toronto-based company that designs, manufactures, and sells performance luxury apparel for men, women, youth, children and babies in Canada, the United States, Asia Pacific, Europe, and in many other parts of the world. Shares of Canada Goose have increased 2.4% month-over-month as of close on September 15. Meanwhile, the stock is still down 11% in 2023.
The company reported total revenue growth of 21% to $84.8 million in the first quarter (Q1) of fiscal 2024. Meanwhile, gross profit jumped 29% to $55.2 million. However, Canada Goose still reported an operating loss of $99.7 million due to higher selling, general, and administration (SG&A) costs. EBIT stands for earnings before interest and taxes. Canada Goose posted an adjusted EBIT loss of $91.1 million in Q1 FY2024 – down from $75.9 million in the prior year.
Shares of Canada Goose currently possess a price-to-earnings ratio of 43. That puts this TSX stock in solid value territory compared to its industry peers at the time of this writing. This company is still well-positioned to deliver strong earnings growth as Canada Goose has posted impressive penetration in international markets like China. I’m looking to buy this growth stock on the dip as the temperature drops.