Canada Goose Holdings Inc. (GOOS.N, TO) On Thursday, Canada Goose Holdings Inc. (SCOSP), a Canadian high-end down brand, posted its first straight-run share price gain of less than 20%, far behind its Snap Apps (SNAP) .N) 44% increase on the first trading day Saturday, Barron’s Barron’s weekly Web site published an analysis article that the company’s single product, poor sustainability, the future is full of risk.
Barron’s Web site quotes Faye Landes, co-founder of New York-based retail consultancy Back to the Future Ventures, commenting that the valuation of Canada Goose is related to its scarcity but said that the well-made Canada Goose Canada goose can be put on Ten years, how to make consumers buy high frequency, and how the growth of the group to support the current share price.
For Canada Goose Canada goose is equivalent to 39x P / E, Barron & BrachTek considers it quite high and due to stock price soar after season and seasonality causes possible losses in the last quarter of March, the share price of the group corresponds to the current fiscal year P / E is at the forefront of both fashion and retail.
The article also cites the comparison of a similar retail company, Deckers Outdoor Corp. (NASDAQ: DECK), which heavily relies on seasonal, branded single-brand UGG, while Deckers Outdoor Corp.’s share price is almost cut-off from 2014, while specialty sportswear Under Armor, maker of Under Armor, Inc. (UA.N), plunged from $ 45 to $ 18 in the past year, all of which stemmed from penalties for declining sales or slowing growth in the two brands, UGG and UA.
Barron’s magazine pointed out that fashion is difficult to sustain for a long time, Canada Goose may have a strong fiscal 2017, but its shares will surely (due to the slowdown in growth) be greatly reduced after years of successful performance, and there should be no accident.