2/17/2021 Canada Goose Stock Has a Coyote Problem | Barron's

CONSUMER PREVIEW

Canada Goose Stock Has a Coyote Problem

By Evie Liu

Updated December 30, 2019 / Original December 27, 2019

Illustration by Elias Stein

As a winter storm rolling through the Midwest hits post-Christmas travelers this
weekend, a toasty jacket is a necessity. Indeed, this time of the year is the best-
selling season for Canada Goose Holdings, a 62-year-old brand known for luxury
winter parkas that typically cost around $1,000.

But Canada Goose faces a chronic problem that’s become increasingly difficult to
ignore. The company’s signature parkas are stuffed with goose down and trimmed
with coyote fur, and have long been a target of animal-rights activists. Earlier this
year, the Federal Trade Commission investigated the company over advertising
claims that the materials were sourced ethically, then backed off for now. A Daily

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2/17/2021 Canada Goose Stock Has a Coyote Problem | Barron's

Beast article even suggested that owning a Canada Goose coat might put off
potential dating partners.

A Chill in the Air The company said it makes “function-first

Canada Goose stock has been apparel” and is committed to ”ethical sourcing
tumbling this year. and responsible use of all animal materials in our
Year-to-date stock products.”
performance

S&P 500 Canada Goose

The stock tumbled earlier this month after DA
Davidson analyst John Morris suggested Canada
50% Goose jacket prices are getting marked down this
holiday season, a claim the company has denied.
25
For the December quarter, Wall Street is
0 expecting only 12% year-over-year growth in
sales—its slowest quarterly growth since the
-25 company went public in 2017. The shares have

-50
shed nearly half of their value from their all-time
high in November 2018.
Jan. ’19 May Sept.
Source: FactSet
To boost sales, the company is adding more
furless coats and items like sweaters. Still, Canada Goose may resist abandoning
coyote pelts that are so identified with its brand. They’re warm, too.

Next Week

Monday 12/30
The Institute for Supply Management releases its Chicago Purchasing Managers’
Index for December. Economists forecast a 48.3 reading, up from November’s 46.3.
If estimates prove correct, it would be the fourth consecutive monthly reading
below the expansionary level of 50, and a steep decline from December 2018’s
63.8 figure.

The National Association of Realtors reports its Pending Home Sales Index, a
forward-looking indicator based on contract signings, for November. Consensus
estimates are for a 1.3% gain after a 1.7% drop in October.

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