Diamonds and Dogs

11/14/18

Canada Goose Holdings (GOOS) flying higher today. The luxury winter coat maker is jumping 15% to new all-time highs following better than expected earnings. Earnings jumped 36% year or year as revenue rose 34% to $230 million. The company also raised sales guidance for 2019, now expecting 30% year over year growth as the company looks to expand into the Chinese market. Canadian Goose stock is up over 100% in the last year, but now trades for lofty valuation of 100 times earnings and 13 times 2019 better than expected sales estimates.  

Canadian pot stocks taking a hit. Canopy Growth Corp (CGC) and Tilray (TLRY) are both down 10% following earnings. Canopy Growth reported a loss of $330 million as revenues rose 32.4% to $23.3 million below estimates. So far the company hasn't received any material order for recreational cannabis since the legalization in Canada. Sales and marketing costs ballooned 167% to $39 million and general and administrative costs shot up 159% to $37.1 million. Not what investors were expecting. The good news is they received a $4 billion investment from Constellation Brands so they have cash to burn if they like.