(Bloomberg) -- Short sellers in Canada Goose Holdings Inc. must have been pleasantly surprised when the luxury coat manufacture posted quarterly sales that missed analysts' estimates. It was the first time Canada Goose did not top the consensus in the company's two-year history as a public entity, and the stock is being duly punished.
“Shorts were down for the year prior to today's price move,” Ihor Dusaniwsky, head of research for financial analytics firm S3 Partners, wrote in a note. Today alone, shorts are up $104 million in mark-to-market profits, bringing the year-to-date profits to $84.7 million, up 23% on the year, he said.
Almost 8.3 million Canada Goose shares are held by short sellers, or 14.13% of float, representing $406 million, according to the S3 data.
“There is ample stock loan availability in Canada Goose so there is no fear of a technical short squeeze in the stock due to excessive stock borrow fees or recalls,” Dusaniwsky said. He expects to see additional short selling on the stock as bears are now in the black and the shares have been trending downwards for the last month. This would be especially true if the stock price continues trending toward the $30 level.
NOTE: Earlier, Canada Goose Craters as First Revenue Miss Sows Doubts on Growth
Earlier, Retail Earning Misses Drive Broader Sector Sell-Off
To contact the reporter on this story: Janet Freund in New York at jfreund11@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Jennifer Bissell-Linsk
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