A humorous look at the companies that caught our eye, for better or worse, this week
Canada Goose (DOG)
“Run! The geese are attacking!” Shares of high-end parka maker Canada Goose suddenly turned violent after quarterly revenue missed expectations for the first time since the company went public in 2017, stoking fears that its explosive growth of recent years may be cooling. Even though revenue over all rose 25 per cent, it was the slowest growth in eight quarters and fell short of the 27-per-cent increase analysts had been expecting, sending the stock to a big loss. “Mommy, the goose just bit me!”
Indigo Books & Music (DOG)
Once upon a time there was a book retailer named Indigo Books & Music. Indigo’s investors were very sad because the company announced a loss of $23.8-million for the quarter ended March 30. “That’s more than twice as big as the loss of $10.7-million a year earlier!” they exclaimed. Investors were also sad because Indigo’s revenue fell 7.5 per cent, as weaker consumer spending and a later Easter hurt its sales. But what made investors saddest of all was Indigo’s stock price, which had plunged about 60 per cent in the past year. “Sell!” they cried. The end.
Abercrombie & Fitch (DOG)
Investing Lesson No. 321: Never invest in a fashion retailer. Shares of Abercrombie & Fitch shed more than one-quarter of their value on Wednesday after the teen-apparel retailer announced results below expectations and issued a tepid second-quarter sales forecast that also missed estimates. With same-store sales growth at A&F’s surf-inspired Hollister chain – which had been a bright spot for the retailer – slowing to just 2 per cent in the latest quarter from 6 per cent a year earlier, investors are losing their tie-dyed, short-sleeve shirts.
Bank of Montreal (DOG)
The BMO news release that wasn’t approved: “Dear BMO Investors: I’m sorry, but what do you want from us? Our second-quarter adjusted earnings increased by 4 per cent to $1.52-billion or $2.30 a share, and we raised our dividend by 3 per cent. And you’re upset because we missed analysts’ estimates by, what, three pennies? Is that why you put the boots to our stock? You people wouldn’t know a good earnings report if it smacked you in the face. You know what? We can take that dividend increase back. You want higher banking fees? We can do that, too. So stop whining."
BRP (STAR)
After getting stuck in the mud for months, shares of all-terrain vehicle maker BRP are finally gaining some traction. Helped by strong sales of the Can-Am Ryker, a new three-wheeled roadster that sells for roughly half the price of previous trikes, the company posted a 17.3-per-cent increase in revenue for the first quarter as earnings topped estimates. In another positive sign, the company – which also makes Ski-Doos, Sea-Doos and other powersports vehicles – said it plans to buy back up to $300-million of its subordinate-voting shares. Investors are doing doughnuts.
John Heinzl