President-elect Donald Trump 's tariff strategy could hurt two key apparel companies, according to Goldman Sachs. The former president announced late last month that he vows to impose 25% tariffs on all goods from Mexico and Canada, as well as an additional 10% tariff on Chinese goods. With that, Goldman sees Canada Goose and Kontoor Brands being hurt most due to their exposure.
By contrast, the bank said that the company has no sourcing exposure to Canada. "Given these supply chains for GOOS and KTB are owned rather than outsourced, a significant mitigating offset may be more difficult to achieve, though price increases, dual-sourcing, and other actions could help to offset any cost headwind," Roach continued. Wall Street is similarly hesitant on Canada Goose, with three of the six analysts covering the name having a hold rating, according to LSEG data.