Canada Goose Holdings Inc

Canada Goose has agreed to sell its performance footwear brand Baffin Limited to Canadian work and military footwear manufacturer L.P. Royer Inc., a move the outerwear company says is about focus and simplifying its operating model. Terms of the deal were not disclosed, but the transaction is expected to close this month subject to customary closing conditions. Canada Goose originally acquired Baffin in 2018 for 32.5 million Canadian dollars, a purchase that laid the groundwork for the launch of its own footwear collection in 2021. Under Royer, Baffin will continue to operate as a separate brand, and the entire Baffin team will join the Royer Group, which intends to invest in the brand and leverage its manufacturing expertise to grow it globally.

Canada Goose Holdings has been among the most searched stocks on Zacks.com, prompting a review of key factors that may influence its near-term performance. The consensus earnings estimate for the current quarter is a loss of $0.65 per share, up 1.5% year-over-year, while full-year estimates of $0.83 and $0.95 for the current and next fiscal years represent growth of 48.2% and 14.5%, respectively, with all estimates unchanged over the past 30 days. The company reported quarterly revenues of $330.46 million, a 23.4% increase from the prior year and a 10.95% surprise above the Zacks Consensus Estimate, though EPS of $0.27 missed estimates by 6.9%. Canada Goose carries a Zacks Rank #3 (Hold) and a Value Style Score of A, indicating it trades at a discount to peers.