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Analysts said the “strong luxury growth brand” is on sale, and the risk/reward profile “strongly favors” long-term upside.
“As a luxury performance outerwear brand, we see GOOS mostly driving strong growth from new distribution and also increases from new adjacent product categories,” they said.
“We see Canada Goose more than doubling its footprint while remaining smaller than luxury competition. Category expansion is in early innings and showing progress.”
While the firm acknowledges the volatile trends in North America and China over the last year, as well as the choppy near-term macro, they believe the bigger picture suggests the company has ample room to grow and expand profitability.
“We model revenue +19.5%/+13.0% in FY24/FY25 (long-term algo target of +20% CAGR), making Canada Goose among the fastest growing global brands,” the analysts wrote, adding that the company’s valuation is attractive.
