Canada Goose stock plummets after drop in gross margin
Canada Goose Holdings (GOOS -14.6%) shares dropped today after the company announced adjusted EPS of -C$0.45, beats by C$0.11, and adjusted EBIT of -C$60.2M from -$C39.9M in the prior year comparable quarter ended June 27, 2021.
The company's gross margins fell sequentially to 54.5% from 66.4% in the company's prior quarter.
Executives said that Canada Goose is experiencing store traffic headwinds, with 6 of their 28 retail stores remaining closed as of today.
E-commerce revenue rose 80.8% compared to last year's similar quarter. "Our digital business continued at a rapid pace of growth globally, alongside improving retail trends," said CEO Dani Reiss.
The company maintains its outlook for the fiscal year.
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