SHOP, LULU, GOOS: Canada’s Labor Market Shrinks - Economic Pain Deepens

Canadian stocks brace for impact as employment numbers nosedive—Shopify, Lululemon, and Canada Goose face mounting pressure.

The Triple Threat

Three of Canada's retail darlings just got slapped with a reality check. When paychecks disappear, so does consumer spending—and these brands sit squarely in the crosshairs.

Labor Crunch, Market Punch

Fewer jobs mean tighter wallets. For premium apparel and e-commerce plays, that's a direct hit to revenue projections. Analysts already whisper about guidance cuts.

Finance's 'Predictable Surprise'

Because who didn't see this coming? Central banks hike rates, economies stall—but somehow Wall Street still acts shocked. Classic.

Bottom line: When Main Street hurts, Bay Street bleeds. And right now, Canada's bleeding.

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The August job losses build on 41,000 jobs that were lost in July of this year. In a month, Canada’s unemployment rate has jumped to 7.1% from 6.9%. The poor employment report is the latest in a series of bad news for the Canadian economy, which is struggling under the weight of U.S. tariffs.

At the start of September, it was reported that Canada’s economy contracted 1.6% on a year-over-year basis in this year’s second quarter after growing an annualized 2% in the first three months of 2025. Taken together, the GDP and labor force survey are painting a grim picture, with many economist now forecasting a recession in Canada.

Darkening Skies

The August jobs report was much worse than had been expected. Economists polled by Reuters (TRI) had forecast that the Canadian economy WOULD add 10,000 jobs last month. Employment in Canada fell across several industries, with the biggest losses recorded in the professional, scientific and technical services industry, which shed 26,000 positions.

The poor economic performance is dragging down leading Canadian stocks such as e-commerce company Shopify (SHOP), clothing retailer Lululemon Athletica (LULU), and Canada Goose (GOOS), the Maker of winter parkas. LULU stock is down 18% on Sept. 5 after the company again lowered its forward guidance, citing impacts from U.S. tariffs.

Is LULU Stock a Buy?

The stock of Lululemon Athletica has a consensus Moderate Buy rating among 24 Wall Street analysts. That rating is based on 12 Buy, 11 Hold, and one Sell recommendations issued in the last three months. The average LULU price target of $267.76 implies 58.24% upside from current levels. However, these ratings are likely to change after the company’s just released financial results.