Canada Goose Holdings Inc. (NYSE:GOOS) shares slipped 2% on Friday after Williams Trading lowered its rating on the luxury outerwear maker to Sell from Hold, citing growing concerns that new U.S. tariffs on Canadian apparel could weigh on the company’s financial outlook.
The brokerage also reduced its price target to Cdn$10.00 from Cdn$12.00 ahead of the company’s upcoming quarterly earnings release.
New U.S. tariffs raise uncertainty
The downgrade follows the announcement that the U.S. President signed a proclamation on July 20, 2026, introducing an additional 50% tariff on certain Canadian imports, including apparel.
The new duties are scheduled to take effect on August 19, 2026, under Section 338 of the Tariff Act of 1930 after the required 30-day notice period.
Given Canada Goose’s exposure to the U.S. market, analysts believe the measures could have a meaningful impact on future performance.
Analyst warns guidance could come under pressure
Williams Trading analyst Sam Poser said the company may be forced to reassess its financial outlook if the tariffs are implemented.
“There is a great risk that GOOS will cut or pull its FY27 guidance, due to the potential additional 50% tariff on goods shipped to the U.S.”
According to the analyst, just over one-quarter of Canada Goose’s fiscal 2026 revenue was generated in the United States, making the market an important contributor to overall sales.
Earnings report expected next week
Canada Goose is scheduled to release its fiscal first-quarter 2027 results on Thursday, July 30, 2026.
Poser noted that the first quarter typically accounts for less than 7% of annual revenue and approximately -104% of yearly earnings, limiting its importance as an indicator of full-year performance.
Questions remain over long-term growth strategy
Beyond tariff risks, Williams Trading also raised concerns about the company’s ability to expand beyond its traditional outerwear business.
The analyst questioned management’s confidence in driving sustainable growth outside heavyweight and lightweight jackets while building a more balanced business throughout the year.
Poser further suggested that last year’s strong fourth-quarter performance was helped significantly by colder-than-average weather across the northeastern United States and much of Europe, rather than by structural improvements in demand.
Rare use of Section 338 powers
The latest trade action also marks a notable development in U.S. trade policy.
While Section 338 of the Tariff Act of 1930 has previously been cited as a potential enforcement tool, this represents the first formal proclamation imposing tariffs under the provision.