Canada Goose beats on earnings but cuts guidance

Yahoo Finance Live anchors discuss quarterly earnings for Canada Goose.

Video transcript

[AUDIO LOGO]

[LAUGHTER]

BRIAN SOZZI: Shares of Canada Goose, well, they're down, I'm told, after the cold-weather apparel posted an earnings beat for the second quarter, but slashed Q3 and full-year guidance, as they expect COVID-19 restriction in China to continue negatively impacting performance. Not a bad quarter for Canada Goose. Just going through it. I think--

[CLOCK TICKING]

It really took me back to when I talked to Dani Reiss over at the Goldman conference a couple of weeks ago. Demand seems to be good. China appears to be the weak point, though. Also, inventory, no big builds there. So not a hugely big red flag. But I mean, it's squishy.

JULIE HYMAN: I don't know, this is not what you want to hear from the CFO. Jonathan Sinclair telling analysts, "It is extremely challenging to project the bulk of the year's trading based on merely a few weeks of visibility. But recent events, impacting trends, are not supportive--

BRIAN SOZZI: Well, that sucks.

JULIE HYMAN: --of our original outlook." Not supportive of our original outlook. That's not what you want to hear.

BRAD SMITH: I mean, far less people are gonna have the money at least to spend. And because Canada Goose had been trying to get more into kind of the average consumer, even though it's a very pricey product, the affluent consumer continues to kind of attract towards that. But there are new, kind of trendier, fashion jackets, coats, outerwear, that is taking on more of that market share that Canada Goose once held on to strongly. However, I will say, I've never been so confident turning a corner--

[BUZZER BUZZING]

--in New York City during the winter.

BRIAN SOZZI: Same here.