Wells Fargo Downgrades Canada Goose (GOOS) to Underweight

Wells Fargo analyst Ike Boruchow downgraded Canada Goose (NYSE: GOOS) from Equal Weight to Underweight.

The analyst comments "With concerns around weakening global brand heat (neg reads from recent checks), China macro (& their heavy exposure to the region) and margin headwinds (via DTC deleverage, inventory issues and category mix) we downgrade to UW and lower PT to C$12. Brand Heat Trending in the Wrong Direction. At the beginning of the year, GOOS announced a change in marketing strategy, which would focus on fewer, bigger, moments to capture brand heat. While the brand was able to capture some early attention in May/June, it was short-lived as brand heat plummeted in 3Q (according to Social media mentions) and now looks to be underperforming outerwear peers. This along with weakening search trends globally sets GOOS up for a potential tough holiday."

For an analyst ratings summary and ratings history on Canada Goose click here. For more ratings news on Canada Goose click here.

Shares of Canada Goose closed at $11.85 yesterday.

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