IBD 50 stock Canada Goose (GOOS) is flying higher Thursday on the heels of a view-topping quarter, as the maker of luxury winter wear and outdoor gear reported relatively hot sales in the summer fiscal first quarter. The stock is rising from a key level.
XShares gapped up at the open, reaching as high as 59.48, but quickly pulled back, briefly turning lower. Shares were up 3% in morning trading in the stock market today.
Canada Goose has a 98 Relative Price Strength Rating, and its relative strength line hit a new high in June, marking outperformance against the S&P 500.
Canada Goose Earnings, Sales Beat
Canada Goose lost 12 cents a share adjusted in a typically weak summer quarter, while revenue jumped to $34.6 million.
That's better than analyst expectations for per-share losses to widen to 18 cents vs. 10 cents in the prior-year quarter, and revenue of $25 million.
Management reiterated guidance, including at least 20% revenue growth and adjusted EPS growth of 25% or more.
Canada Goose Stock Tests Key Level
Canada Goose stock, which is No. 6 on the IBD 50, tested its key 50-day moving average for the past two sessions, and climbed above that key technical level Thursday.
A strong rebound from the 50-day line offers a follow-on buy opportunity for existing holders. Canada Goose stock also has a traditional 65.05 buy point from a riskier late-stage double-bottom base.
Shares of outerwear maker Columbia Sportswear (COLM) rose 2%. The North Face parent VF (VFC) rose 1%. And luxury peer Michael Kors (KORS), which also makes winter coats, climbed 3%, making another move above a 70.10 buy point. Michael Kors stock tried to break out Wednesday on its earnings, but closed just below the flat-base entry.
Canada Goose products can run upward of $1,000 for an ultra-luxe parka. The company could be considered something of an "odd duck" for its niche market, though it has a strong direct-to-consumer channel, which accounts for over 43% of its 2018 sales. That rose to 52% of sales in fiscal Q1
The U.S. was traditionally Canada Goose's largest market. That changed in fiscal 2018, when Canada rose to represent 39% of total revenue. U.S. sales were 31% of the total. International sales were 30%.
Canada Goose came public at 12.75 a share in March 2017.
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