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Poshmark lowers Q3 forecast, Canada Goose revenue doubles

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Myles Udland and Julie Hyman break down some of Wednesday’s early market movers, which include: Poshmark lowering its Q3 forecast after reporting higher sales in its Q2 earnings and Canada Goose beating quarterly revenue expectations as sales rebound.

Video Transcript

- Let's turn now to a name Julia that you had your eye on. Poshmark out with its latest quarterly results. A little bit better than expected here, but the company did come out and lower their third quarter forecast.

- Yeah, exactly. And interesting, of all the companies that you expect to talk about Apple's new policies affecting it, Poshmark wouldn't necessarily be at the top of my list, that the company has new privacy controls over digital advertising tracking. But Poshmark does get a lot of feeding in from social media in particular, and advertising that we see on social media. So that's something that the company's CEO talked about and talked about in various interviews in the wake of the numbers.

Even though, as you said, the numbers looked relatively strong. Second quarter revenue that we showed was a gain of 22%. Gross merchandise volume was up by 25%. Now, the CEO did tell Reuters that he was confident that this would be a temporary effect from the Apple changes, but it looks like investors for the moment, Miles, are not buying it.

- No, stock, again, as you mentioned there, down about 7%. Let's stay in the apparel business. Let's talk a little bit about Canada Goose. That stock is under a little bit of pressure this morning after the company reported its latest quarterly results. Overall revenues, again, up over the same quarter last year. We continue to see the digital business growing for Canada Goose. But ultimately, the company is still losing money. Revenue at $56.3 million in the most recent quarter and we see the loss, the total loss, including everything that's in there, $58.4 million overall.

And certainly, some improvement on the inventory line. Canada Goose talking about I believe, $404 million of inventory it's sitting on right now. $430, closer to 430 is what they were sitting on the same quarter last year. But ultimately, a business that plays in the luxury part of the market and I think has a lot of exposure to international. There's a big China part of that business.

You also just need people moving around. IF people are at home more often, you're not looking at-- you know, you're not looking at a big fancy coat as the thing to go spend your money on, even with consumers being flush with cash. And we've talked about all the different categories that have benefited just from huge consumer cash balances. Julie's telling me to go buy a winter coat right now. Isn't this the time when you're ramping into? I think they're on sale in February. This is the time when they want me to buy a winter coat today.

[INTERPOSING VOICES]

- Well, I would think after numbers like this maybe they would be on sale.

- Maybe. I got a great deal on one of those three layer Patagonias like two years ago in like, March. I think it was like maybe March of 2020 and then I didn't use it, obviously. I don't think I've ever really worn that coat. So I've got a brand new coat sitting there. So maybe that's another part of the coat market under a little bit of pressure here.