Canada Goose earnings beat on strong parka, jacket sales, shares surge
today Nov 13, 2019
Canada Goose Holdings Inc reported quarterly earnings above Wall Street estimates on Wednesday, lifted by higher orders from department stores for its parkas and jackets, sending its U.S.-listed share up 8%.
The company’s wholesale business reported a 22.2% jump in sales to C$219.8 million, while revenue from its retail stores and online operations surged 47% to C$74.2 million.
Canada Goose gets the bulk of its revenue from its wholesale business in North America, where its goods are sold in department stores including Bloomingdales and Nordstrom Inc.
“Alongside continued growth at home, we are making great strides internationally, and we believe we are well positioned going into our peak selling season,” Canada Goose Chief Executive Officer Dani Reiss said.
The Toronto-based company, known for its $1,000 parkas, opened flagship stores in Beijing and Hong Kong last year to cater to a growing appetite for luxury goods among affluent Chinese.
Overall, revenue rose 27.7% to C$294 million ($222.2 million), well above analysts’ estimates of C$267.3 million, according to IBES data from Refinitiv.
Excluding items, the company reported a profit of 57 Canadian cents per share in the second quarter ended Sept. 29. Analysts were expecting a profit of 43 Canadian cents.
Net income rose to C$60.6 million, or 55 Canadian cents per share, from C$49.9 million, or 45 Canadian cents per share, a year earlier.
The company, however, reiterated its outlook for fiscal 2020.
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