Canada Goose has taken quite the hit over the last year as it essentially lost 50% of its numerical stock value. However, what traders must realize is Lululemon essentially went through the same process years ago when it surged from basically nothing to about 85-90.00 and also lost 50% of its value to near 40-50. Now, its about a 260+ stock.
In this case because these companies are "brands", P/E ratios can be mostly ignored here.
I believe CG will follow the same type of a trend and will continue to find support near the 50.00-ish range with perhaps going a bit below at certain times.
In the long-run, this will be a strong brand as they have diversified their product-line and international distribution. Over the course of the next 3-5 years this stock will be well over 100.00 and a top TSX performer.
I agree with your long term hold comment, but short term it is a disaster.
Ironically I made money on this one, will continue watch it
humjav1
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Pardon my newbie question, is comparing GOOS to LULU like apples and oranges? LULU has physical stores and variety of products whereas GOOS focuses on few number of products not to forget their gloves and knitwear is made in China.
PaulDeep19131
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@humjav1, Correct. Lululemon does have physical stores but the future of retail is e-commerce, rather than physical stores. I believe Canada Goose actually has some "no inventory stores" now as well which is part of the future. Basically a show-room to try things on and the item is shipped to you.
Also correct that their gloves and knitwear is made in China but that really has no impact on the brand as their most expensive items are still made in Canada. I'm sure all Lululemon's clothes are made in china so it would be a moot point.
They have also drastically widened their line-up of clothes to including not just winter gear, but also spring gear as well and I believe they'll expand it further.
In the end I see it as one of the top growing brands in clothing, period. There aren't many top brands these days, especially when you're talking about winter wear.
- zSplit
BobbyBanksX
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So... I can put $1000 into CG now, and 3-5 years later, I'll be able to purchase one of their coats!
Just jokes, zSplit.
Thank you for the history tidbit on LULU. It wiped out prior biases I've had starting this chart.
Fundamentally, I think these new age clothes tickers are absolutely bananas; but financially, they made lots of dollars and sense.
There will always be a market for shiny and expensive and that trend is growing more steadily as time goes on despite people carrying more debt than really ever before. I see Canada Goose as a top developing brand similar to Lululemon.
The fact they can claim their jackets are made in Canada is something they can really push since people are against the whole "made in China" right now.
This will surely be a top growth stock over the next few years thats for sure!
Ironically I made money on this one, will continue watch it