- Canada Goose beat estimates for quarterly revenue and profit, boosted by a surge in online sales and increased demand for its luxury parkas in China.
- The company is tapping into increased domestic Chinese spending as consumers who made a bulk of their purchases abroad before the Covid-19 pandemic cannot travel as freely as before.
Canada Goose beat estimates for quarterly revenue and profit on Thursday, boosted by a surge in online sales and increased demand for its luxury parkas in China, sending the company's U.S-listed shares up nearly 21%.
The company is doubling down on the Chinese market to tap into increased domestic spending as affluent consumers who made a bulk of their purchases abroad before the Covid-19 pandemic cannot travel as freely as before.
Canada Goose is opening new stores in the country and collaborating with Chinese designer Angel Chen for a new collection.
"We saw strong double-digit growth across all of our major markets, including China, and this growth is accelerating into the fourth quarter," Chief Executive Officer Dani Reiss said in an interview with Reuters. "E-commerce in China is very strong and Tmall has been a tremendous platform for us."
Canada Goose, popular for its expensive parkas worn by Arctic scientists and Hollywood celebrities, has been investing heavily into its overseas markets, including Europe, and ramping up its digital business to cushion the hit from pandemic-led lockdowns.
"Our European business has performed very well, our revenue grew almost 30%...despite the impacts of store closures and international travel restrictions," Reiss said.
Global e-commerce revenue jumped 39.3% in the quarter ended Dec. 27, helping Toronto-based Canada Goose post revenue growth for the first time since the onset of the pandemic.
Net income fell to C$107.0 million, or 96 Canadian cents per share, from C$118 million, or C$1.07 per share, a year earlier.
Excluding items, Canada Goose reported a profit of C$1.01 per share, beating estimates of 86 Canadian cents per share.
Revenue rose 4.8% to C$474.0 million ($369.97 million), beating the average analyst estimate of C$415.27 million, according to IBES data from Refinitiv.