Canada Goose stock pops because it's the early winner of January date night
Throw in AirPods and a Starbucks latte... and the Canada Goose fit is complete. Canada Goose stock popped 8% yesterday because it's the corona-conomy winner that came in from the cold. The stock just got a confidence-boosting analyst upgrade, now that winter is coming and outdoor activities seem here to stay:
- On Friday, NYC Mayor de Blasio announced that outdoor dining will be a year-long thing. 8M New Yorkers can devour pizza al fresco all winter long.
- New Yorkers love: Eating at restaurants and complaining about the cold. That's where Canada Goose comes in with its fur lined $1K jackets.
- Fun (depressing) fact: You could buy 31 shares of Canada Goose stock for the price of one parka.
It's gonna be a long, cold winter... Love Island, Upper East Side. Canada Goose's sales fell 63% last quarter compared to last year and the stock slipped 30% from January to early September. Tight wallets, closed stores, and no travel hurt its fur-lined pockets. Buuut: the stock is up 30% this month as Northeasterners prep for a pandemic winter.
Canada Goose could thrive in a K-shaped and V-shaped recovery ... If the economic recovery turns out to be V-shaped, as President Trump says, then most Americans will quickly recover economically (and wealthy Americans will continue to buy $1K parkas). If it turns out to be K-shaped, as Joe Biden says, then only wealthy Americans will quickly rebound (and will still buy $1K parkas). But the recovery could also take neither of those shapes.