Williams Trading upgraded Canada Goose Holdings Inc. (NYSE:GOOS) to Hold from Sell with a price target of C$12.00.
The company’s fourth-quarter fiscal 2026 revenue exceeded estimates, though earnings fell short of expectations. Wholesale revenue increased 54.4% in the quarter, or 51.6% in constant currency, accounting for 10.8% of total sales, up 150 basis points year-over-year. The company maintains an impressive gross profit margin of nearly 70%, reflecting strong pricing power.
Wholesale revenue growth was driven by early deliveries of spring products originally planned for Q1 fiscal 2027 and at-once fill-in orders. Direct-to-consumer revenue increased 15.2%, or 15.8% in constant currency, driven by a 10% same-store sales increase.
The earnings miss resulted from a C$8.4 million impairment charge related to select stores. Williams Trading noted the charge will not repeat in Q4 fiscal 2027.
The firm said the stock price has closed in on its price target.
