Trade tensions weigh on Canada Goose stock
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What's good for this Goose, you ask? Not tariffs.
- Luxury apparel maker Canada Goose saw its stock price drift lower Monday as tensions between the U.S. and longtime ally Canada worsened.
- The company, whose ticker symbol is GOOS, is known for selling pricey down-filled parkas with a distinctive logo worn by various A-listers.
The big picture: Its stock has been falling all year on higher tariffs from its southern neighbor.
- Plus, the prospect of a warmer winter — courtesy of El Niño — isn't great for the outerwear business, Wells Fargo analysts noted Monday.
Flashback: Just a year ago, the company looked like a tariff winner, shielded by the U.S.-Mexico-Canada Agreement negotiated during President Trump's first term.
- Analysts thought Canada Goose had an edge over other clothing companies that manufactured their products outside North America.
- Indeed, the company's chief operating officer, Beth Clymer, said on an investor call at the time that the impact of tariffs would be "minimal." Three-quarters of its products are made in Canada, she noted.
By the numbers: A 50% tariff on Canadian goods — which kicked in this weekend — would increase the company's effective tariff rate to 41.4% from 4.3% on U.S. imports, per a Bank of America estimate earlier this month.
Yes, but: The company has struggled for years to grow, facing a variety of challenges — tariffs are just the latest issue.
- It's down from a peak of more than $70 a share in 2018.
The bottom line: Trump's tariffs are ruffling all kinds of feathers.
