A pessimistic analyst report knocked the wind out of Canada Goose (GOOS) shares, which are down 10% in trading.
Wells Fargo analyst Ike Bochurow said in his note that high-priced designer clothing is experiencing challenges because of slowing economies in Europe and China.
He also said another concern for the brand is that Canada Goose has decreased in popularity on social media:
We see a recent slowdown in both Google trend search and Instagram engagement over the holiday quarter — most notably in December — as somewhat concerning for a stock that currently relies heavily on momentum and robust growth to keep their premium valuation justified."
Bochurow lowered Goose's price target from $80 to $68. It closed Wednesday at $49 per share.
Canada Goose went public in March 2017 and sells $1,000 winter jackets. The stock has soared nearly 200% since then.