Canada Goose sales rise in Q1. Is GOOS stock a buy?

3 min read | August 12, 2021 09:59 PM AEST | By Raza Naqvi

Canada Goose sales rise in Q1. Is GOOS stock a buy? — Image source: ANDRANIK HAKOBYAN, Shutterstock.com

Canada Goose (TSX:GOOS) plans to change business strategies

As COVID-related public health restrictions are eventually lifted amid vaccination campaigns, it is expected that people will return to physical retail stores. However, Canada Goose, which is a luxury winter clothing and parka maker, has kept its full-year guidance unchanged.

Canada Goose is reportedly planning to sell its products through its stores and website, while it maintains distance from third-party retailers. This could help the company to increase profitability.

The Canadian company has also revealed that it is committed to removing fur from its iconic parkas. The Toronto-based apparel brand has said that it will stop buying fur by the year-end and cease manufacturing such clothes by 2022-end.

In the past, Canada Goose has often been criticized by animal rights groups as they use coyote fur in some of their clothes. The company has, however, not revealed which material will be used to replace the fur.

Also Read: 5 Canadian stocks paying the highest dividend in 2021

Bottomline

GOOS stock seems to be on a downward trajectory for the past few months. After a surge of 28 per cent year-to-date (YTD), GOOS shares declined by 6.5 per cent in the last six months and by nine per cent in the past week.

1-year chart of stock performance, volume and moving average multiple of Canada Goose (Source: EODHD/Others)

As per the last closing price of C$ 48.38 on Wednesday, August 11, GOOS stock seems to be overvalued as its price-to-earnings (P/E) ratio is 77.22.

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