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.
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:
Understand just how seasonal a business really is.