Company Seasonality

Company Seasonality

Company seasonality means that the company’s revenues naturally fluctuate based on the time of year.  

Canada Goose is a perfect example of company seasonality.  They make high-end coats and jackets designed for very cold weather.  Their product is naturally more relevant to consumers during a specific time of year (when it’s really cold), and they’re popular gift items during the holiday season.

We can quickly see this in the LikeFolio Research Dashboard reveals the seasonal pattern:

The LikeFolio Research Dashboard reveals the seasonality of Canada Goose’s business.

The green line is a 90 day moving average of consumer purchase intent mentions, which show an extremely cyclical pattern tied to company seasonality. 

Purchase intent (PI) mentions drop to nearly zero in the summer months (when no one thinks about “extreme weather” coats, much less tweets about buying them), and rise dramatically through the late fall, rising to peak during the coldest days of winter. 

As winter wanes, and temperatures rise, PI mentions then drop back down at nearly the same rate they rose on the way up.  The seasonal cycle completes and restarts as PI mentions drop once again to near zero during the summer.

Keys to researching company seasonality

Now that we understand what company seasonality is, here are a few next steps we can follow to integrate it into our stock research process:

  1.  Understand just how seasonal a business really is.
  2.  Identify the trajectory and trend of the company’s seasonal results.
  3.  Use early indicators as clues that allow you to project company seasonality during busy times of year.

At LikeFolio, we always take company seasonality into account when producing our famous Earnings Predictions and Opportunity Alerts.  

Share This

Latest Insights

Social Data Nailed Walmart Earnings

February 19, 2019

Last week we gave a preview of Walmart earnings on the TD Ameritrade Network: Here is the primary chart we shared, using LikeFolio’s consumer purchase intent data: As you can see, social...

AAPL Earnings Preview

January 29, 2019

AAPL reports earnings tonight after the bell, and that has all eyes on LikeFolio Earnings Prediction data.   That’s because our bearish call on AAPL at $225 immediately after the...

LOAD MORE