If there’s one thing residents of this country know about Canadian winters, it’s that they are much easier to survive with a strong winter coat.
Walk around the downtown cores of some of Canada’s largest cities and you will be sure to see many people wearing the large coats with the Canada Goose (TSX:GOOS) patch affixed to their shoulder.
Canada Goose stock is currently trading at around $30 dollars a share with a market cap of $3.36 billion dollars. The company’s share price has taken quite the hit over the past two years and COVID-19 has not done the company any favors. The closure of retail stores hit Canada Goose hard, but there is reason to be optimistic and believe in a rebound.
The Canadian company, which is still very popular in Canada, has seen great growth outside of the country. Last year, its sales in the United States rose by almost 30% and international sales by over 60%. These are encouraging numbers for the company which will hope to get back to those growth levels after it can reopen its stores around the world.
One thing Canada Goose has going for them is their strong branding.
As mentioned above, their products are easily identified by the patch on the shoulder that has become a symbol for the quality and luxury that Canada Goose brings to the table. Like any other luxury brand, the status symbol of its branding helps the company charge high prices that drive solid margins and help the bottom line.
During the 2020 fiscal fourth quarter, the company managed to beat out analyst projections as it posted positive revenue and income, something that not many expected.
The strength of the company to continue to post a profit through these drastic times speaks to the power of the branding and the growth of the company.
Canada Goose is benefiting from the eCommerce surge
One impact that the pandemic has had on the company is an increase in its e-commerce sales and visits to its website. In a digital world, having a strong online presence will be key to a well-rounded company and helping its sales numbers. In a way, this could be a blessing in disguise for the company that was hit so hard from the effects of the novel coronavirus.
This isn’t the type of stock that you want to be the backbone of your portfolio, rather the company shows the potential that should have investors excited in a higher upside. A relatively small percentage should be allocated to Canada Goose, which will still allow you to see significant profits once the company bounces back.
The luxury jacket manufacturer will continue to keep people around the world warm in their heavy, thick coats for years to come. Their growth, branding, and ability to make it through tough times make this an attractive stock to own. When taking into account just how much it is discounted at the moment, it’s a no brainer to add to your portfolio.
The shares of the company can be bought at a large discount at the moment and the company showed very encouraging signs before the pandemic that should have investors excited about what they can do post-pandemic. For those looking to find a stock that could experience massive growth and help them see large returns, Canada Goose could be the company for them.