Key Takeaways

Shares of Canada Goose Holdings ( GOOS ) sank to a new record low Monday after analysts from Barclays downgraded the apparel maker's stock.

The analysts downgraded the stock to "underweight" from "equal weight" and cut their price target to $8 from $10. They "expect the competitive landscape and geopolitical factors to weigh on its performance in 2025."

Canada Goose shares were down nearly 5% Monday afternoon to $7.86 after dropping to as low as $7.51 earlier in the session. They have lost roughly 35% of their value over the last year.

Canada Goose Seen Facing Competition, Tariff Headwinds

According to the analysts, Canada Goose faces several headwinds, including macroeconomic pressure, competition from other luxury brands, revenue volatility due to seasonality, and "challenges expanding beyond heavyweight down into non-core product categories."

In addition, since nearly all of the firm's down-filled outerwear was manufactured in Canada in fiscal 2024 and about 25% of its sales occurred in its southern neighbor, the analysts said U.S. business margins are likely to be pressured by the Trump administration's looming tariffs on Canadian imports. Executives have said they are not planning to take steps to mitigate the impact of the 25% tariff on imported finished Canadian products "aside from prepositioning inventory in the U.S. where it was able to," the note added.

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