Canada Goose stock up nearly 30%; no guidance from parka maker as Trump's tariffs create 'uncertain times'
Toronto-based Canada Goose declined to issue financial guidance for its current fiscal year as it reported results on Wednesday, citing 'macroeconomic uncertainty and dynamic consumer spending patterns brought on by the unpredictable global trade environment.'
'The decision not to provide an outlook for the year is entirely around what we see as a fairly uncertain consumer environment around the world,' Reiss told analysts on a post-earnings conference call on Wednesday. 'These are uncertain times.'
Reiss says the current tariff landscape is 'not material' to the company's 2026 plans directly.
'Approximately 75 per cent of our units are made in Canada, virtually all complying with USMCA (United States–Mexico–Canada Agreement), which means they are currently exempt from tariffs,' chief operating officer Beth Clymer added on the call.
'Our remaining production, which is primarily from Europe, is facing increasing tariffs. But they will have minimal financial impact.'
Toronto-listed Canada Goose shares rose as much as 28.3 per cent on Wednesday. The stock was up 26.41 per cent at $15.70 per share as at 10:58 a.m. ET.
For the three months ended March 30, Canada Goose reported $27.1 million in net income attributable to shareholders, up from $5 million in the fourth quarter of 2024. Sales increased 7.4 per cent year-over-year, while adjusted earnings before interest, taxes, depreciation, and amortization rose 48.9 per cent on an annual basis.
Despite the strong results, Canada Goose now joins the list of Canadian firms lowering or eliminating financial guidance as U.S. President Donald Trump attempts to overhaul America's trade links with the rest of the world. So far this earnings season, Air Canada (AC.TO), Rogers Communications (RCI-B.TO), A&W Food Services of Canada (AW.TO) have been among companies issuing weaker guidance for 2025.
BMO chief investment strategist Brian Belski recently advised investors to look past these revisions.
"We believe investors should not be reactionary to negative guidance," he wrote in a report to clients.
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.
Download the Yahoo Finance app, available for Apple and Android.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 minutes ago
- Yahoo
Logitech has made progress in shifting production from China, CEO says
By John Revill ZURICH (Reuters) -Logitech International is "well on track" with plans to move production lines out of China to manage the impact of U.S. President Donald Trump's tariffs, Chief Executive Hanneke Faber said on Wednesday. Logitech products, such as keyboards and mice, produced in China and bound for the United States, face U.S. tariffs of up 30%. That level could change depending on the outcome of ongoing talks. The company is seeking by the end of this year to reduce the amount of its products made in China to 10% of the total imported by the United States. Already it has fallen from 40%. "We are a little bit better than 30% now. We are well on track," Faber told Reuters on Wednesday after Logitech reported its first-quarter results. It is switching production lines to Malaysia, Mexico, Taiwan, Thailand and Vietnam - countries where it works with contract manufacturers. "The manufacturing diversification that we've been doing out in Asia and in Mexico is exemplary," she added. "We're not seeing any material cost increases from moving stuff around and that's quite a feat." Logitech has also increased its prices in the United States by 10% to offset the impact of tariffs, but says it does not plan further price hikes. Faber also said the company would continue to invest in new products and seek to control costs as it adapts to economic uncertainty. "The tariffs are not a small thing, but we've been super agile, changing plans at a moment's notice," Faber said. "That's what we'll continue to do." The Swiss-U.S. company has also benefited from an increased focus on business customers that has included setting up specialist sales teams and launching products. Its sales of video conferencing equipment grew at more than double the company's overall rate. Faber said the business-to-business operation that caters for offices, hospitals and schools was "a big strategic priority". "Logitech is a consumer company, but we've quietly built about 40% of our business into a B2B business. "We're still relatively young, so we are building up our capabilities." Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
6 minutes ago
- Yahoo
Mexico's economy grows more than expected in Q2 from previous quarter
MEXICO CITY (Reuters) -Mexico's economy grew 0.7% in the second quarter from the previous three-month period, a preliminary estimate from national statistics agency INEGI showed on Wednesday, beating market expectations. Latin America's second-largest economy notched its second consecutive quarter of growth and exceeded the 0.4% expansion forecast by economists in a Reuters poll. Secondary and tertiary activities, respectively covering manufacturing and services, grew 0.8% and 0.7% on a sequential basis, offsetting a 1.3% contraction in primary activities, which includes farming, fishing and mining. Gabriela Siller, head of analysis at Banco Base, noted that the figures "clearly show" that Mexico is not in recession, but that "does not mean the economy is doing well." "There is still a risk of recession for Mexico, especially if the United States begins to strictly enforce tariffs or adds more sectors to the sectoral tariffs," she said. Year-on-year growth in the second quarter hit 0.1%, while economists expected a 0.2% expansion. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 minutes ago
- Yahoo
Mercedes-Benz pauses EV deliveries to the US as demand falters
By Alessandro Parodi and Amir Orusov (Reuters) -Mercedes-Benz will pause deliveries of its EQ electric range to the United States, the carmaker said on Wednesday as it responded to slowing demand and high inventories at dealerships. Since President Donald Trump's spending bill earlier this month cut tax EV credits sooner than anticipated, analysts have warned that the U.S. electrification drive will underperform expectations this year. "Mercedes-Benz is temporarily putting on hold order banks for EQ models in the U.S. to align with current market demand," a spokesperson for the company said. Mercedes produces cars, including battery-electric vehicles (BEVs), in its U.S. plant of Tuscaloosa, Alabama, which supplies its network of dealers in the country. The group's CEO Ola Kaellenius told reporters on Wednesday that despite the slower trajectory, he expected U.S. consumers to buy more EVs over time. Presenting the company's second-quarter results, he said: "We don't believe that the BEV demand in the United States goes to zero: we still think that the medium to long-term adoption rate of BEVs in the U.S. will creep upwards." The carmaker said in February that it would make more petrol and diesel cars than EVs in its new product range. It said it was targeting 19 new combustion engine models and 17 battery-electric cars by the end of 2027, after its battery-electric sales collapsed by a quarter last year. Sign in to access your portfolio
