Investing.com - Canada Goose led the broad slump across retailers Wednesday after the apparel company's earnings added to a slew of disappointing reports in the sector.
The cash registers at retailers are not ringing to the beat of a seemingly strong consumer. And efforts to ride the e-commerce wave to offset the ongoing malaise in brick-and-mortar retail have come up short.
That's the message from a host of apparel companies, including Canada Goose and Capri Holdings, both of which are sharply lower after delivering a downbeat outlook.
Canada Goose (NYSE:GOOS) delivered a mixed fiscal fourth-quarter report with earnings of C$0.08 a share beating consensus from analysts polled by Refinitiv, but revenue of C$156.2 million fell short of estimates for C$159.2 million.
Worryingly, the company's full-year outlook also undershot expectations, anticipating revenue growth of at least 20% and adjusted earnings per share growth of at least 25%. Its shares tumbled nearly 30%.
Clothing company Capri Holdings (NYSE:CPRI) delivered an earnings beat on both the top and bottom lines, but its below-consensus guidance was punished, sending its shares more than 11% lower before rebounding slightly.
The company reported earnings of $0.63 on revenue of $1.34 billion, beating estimates from Investing.com for earnings of $0.61 a share on revenue of$1.33 billion.
For the first quarter, Capri Holdings guided total revenue of about $1.36 billion and earnings of $0.85 to $0.90 a share, short of analysts' estimates for revenue of $1.44 billion and earnings of $1.23 a share.
The weaker outlook from the duo of sent shockwaves throughout retailers, with American Eagle Outfitters (NYSE:AEO) falling 5% ahead of its quarterly results due June 5. The SPDR S&P Retail ETF (NYSE:XRT) fell 2.5%.