Canada Goose Holdings Inc. (GOOS) plunged 5.17% in the pre-market trading session on Thursday, following the company's third-quarter fiscal 2025 earnings release, which showed a decline in revenue and a cut in full-year guidance.
The luxury apparel maker reported a 0.3% year-over-year decline in revenue to $607.9 million for the third quarter ended December 29, 2024, missing analysts' estimates of $620.9 million. The revenue miss was primarily driven by softening demand in the company's direct-to-consumer (DTC) and wholesale channels, particularly in the Greater China and EMEA regions.
While Canada Goose's gross profit increased 0.5% to $452.0 million and operating income rose to $204.3 million, the company lowered its full-year fiscal 2025 guidance for revenue growth and adjusted net income per diluted share. Canada Goose cited trends in global luxury consumer spending and an increase in marketing investments as reasons for the guidance cut.
The disappointing results and guidance reflect the challenges Canada Goose is facing in navigating the current macroeconomic environment and global luxury demand slowdown, especially in key markets like China. The company's stock price plunge in the pre-market trading session underscores investors' concerns about Canada Goose's ability to maintain its growth momentum amid these headwinds.
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