Shares of Canada Goose Holdings (GOOS, Financials) fell to an all-time low Monday after Barclays downgraded the stock and slashed its price target, citing macroeconomic pressure, increased competition, and potential tariff impacts on U.S. sales.
The Toronto-based outerwear maker’s stock dropped 4.4% to $7.88 as of 3:38 p.m. Eastern Time, after reaching a session low of $7.51. Shares have declined about 37.1% over the past 12 months.
Barclays lowered its rating on the company from "equal weight" to "underweight" and lowered its price goal for the next 12 months from $10 to $8. Analysts said that the brand will continue to face problems in 2025 because it has to deal with a lot of competition and changing customer needs.
Barclays told clients in a note that Canada Goose is having trouble expanding into other product lines besides its main line of heavy down coats. Analysts said that the company's holiday business plan makes things even more unstable when it comes to income.
In the decline, tariff risks were also brought up. Barclays says that about 25% of Canada Goose's fiscal 2024 income came from the US, even though almost all of its goods were made in Canada. Analysts said that a 25% tax on Canadian goods that the Trump administration might suggest could make it harder for the U.S. to make money.
Barclays said that executives haven't come up with any big plans to fight the planned taxes, other than getting some goods into the U.S. before the changes become public.
The experts also said that they think the company will still have to deal with major problems like global insecurity and profit pressure until 2025.
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