Hi Cedrick,
Canada Goose has been faced with headwind after headwind. Chinese-Canadian relations and Hong Kong unrest led to a significant drop in value over the course of 2019. As things starting to look up in 2020, COVID-19 hit and retailers were punished.
Canada Goose is still a best-in-class company, and it is considered a premier luxury brand. We have kept it on the Bull List because we believe that the company's long-term prospects are quite strong. This was a company growing at a 25%+ clip before COVID-19 hit.
It is important to note, that we have yet to see the full impacts of COVID-19 on retail. This quarters earnings are only partially reflective of the potential impacts. We won't know until next quarterly results just how bad it is. For this reason, we believe there will be continued downward pressure on retail, and by extension Canada Goose. They may take longer than most to rebound. The lone brightspot is that China has re-opened and it is a key growth market for the company.
Long-term we believe Goose provides excellent value. Just expect considerable volatility over the next year. This is investors should average into a position and not jump with both feet.
Of note myself and Dan are both long Canada Goose.
Mat