Parka maker Canada Goose Holdings Inc. posted fiscal fourth quarter earnings and revenue higher than analyst estimates due to strong online orders. Shares up 7 percent in New York after rising in pre-market trading.
The company has released a new outlook, predicting current year sales to exceed $ 1 billion ($ 823 million) for the first time. For the quarter ended March 28, revenue increased 48% from a year ago to $ 208.8 million, well above the $ 164.1 million expected by analysts.
- Forecasts assume tourism will not return to normal this year, CFO Jonathan Sinclair told analysts.
- The company said it will step up its investments, including launching its line of footwear in the fall-winter season, which will not pay off immediately,
- The company faced store closures during the quarter as a new wave of infections hit Europe and North America. His home province of Ontario has been particularly affected. Six of its 28 branches are currently closed, half of which are in Toronto. Revenues have fallen in Canada while they have increased “significantly” in other major markets.
- Demand in mainland China, where the company now has eight stores, continued to soar. Direct revenues to consumers from China have doubled from the previous year, when they were affected by the arrival of COVID-19.
- Six of the 10 store openings planned for this fiscal year will be in China, CEO Dani Reiss said in an interview.
- The only downfall for Canada Goose was on margins, which stood at 66.4% while analysts expected 69.2%, in part due to inventory write-offs in wholesale trade. The company has continued to increase its direct-to-customer sales activities, to open more stores and to reduce its list of partners.
- The company, which still relies on the North American winter season for most of its sales, has sought to broaden the brand’s appeal in recent years, designing collections for warmer weather. During the quarter, he announced a partnership with the National Basketball Association, starting this year in conjunction with Los Angeles-based RHUDE.
- The company reported adjusted earnings of 1 Canadian cent per diluted share, beating analysts’ expectations for a loss of 11 cents Canadian.
- Shares fell 4.8% to US $ 39.50 at 9:55 a.m. in New York. They were up 39% this year through Wednesday’s close.