By Adriano Marchese

Canada Goose Holdings shares fell Monday morning after Barclays downgraded the retailer on higher competitive pressures made worse by tariff uncertainties.

Shares traded 5% lower at 11.19 Canadian dollars ($7.81).

Barclays downgraded the stock rating to underweight from equal weight on the back of global macro pressures and increasing competition from outerwear peers, including functional and performance brands as well as luxury brands.

Barclays analyst Adrienne Yih said in a report that the winter-apparel maker also bears tariff risks due to its reliance on Canadian production. She added that revenue is at risk, too, due to volatility around the seasonality of its products

Canada Goose also faces uncertainties in expanding its product categories beyond its core heavyweight-down outerwear.

The stock has been under pressure in 2025, having fallen nearly 23% since the beginning of the year and 32% over the last 52 weeks.

Yih said that while the recent pullback in valuation and share price suggests the company's stock may already reflect these concerns, they see the stock "trading within a range in the near term with potential risk to estimates should competitive pressures remain high and tariff risks intensify."

In its third-quarter report, Canada Goose downgraded expectations for its fiscal 2025 margin on adjusted earnings before interest and taxes, pegging it at between down 100 basis points and flat. The company logged lower profit and revenue in its third quarter, missing expectations for growth.

Along with the downgrade, Barclays lowered its target price for the stock trading in New York to $8 from $10.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

March 31, 2025 11:17 ET (15:17 GMT)

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