Shares of Canada Goose Holdings (GOOS) rose 9% after the parka-maker released earnings
that beat analysts’ expectations and raised its forward guidance.
Canada Goose said demand for its high-end parkas and other luxury goods remains strong
despite rising inflation.
The Toronto-based company said it now expects to see total revenue this year between $1.3
billion and $1.4 billion, and an adjusted profit between $1.60 and $1.90 per share, beating
analyst forecasts.
Canada Goose posted a net loss of $0.09 a share for the quarter ended April 3 compared with a
profit of $0.02 a year earlier. Revenue in the period totalled $223.1 million, up from $208.8
million in the same quarter last year.
On an adjusted basis, Canada Goose said it earned $0.04 per diluted share for its most recent
quarter compared with an adjusted profit of $0.01 a year ago.
The better-than-expected results came amid a deluge of disappointing retail earnings, including
from U.S. department store chain Target (TGT), which warned about pinched margins.
Canada Goose, on the other hand, saw its gross margin improve three percentage points to
69.1% in its fourth quarter versus the same period a year prior. It also said its margins will
remain “in the high 60s” for the full fiscal year.
On a conference call with analysts Canada Goose Chief Executive Officer Dani Reiss said the
company’s Canadian-based manufacturing operations helped shield it from global supply chain
issues. He noted that 84% of Canada Goose’s products are made within Canada.
Even with the big one-day increase, Canada Goose’s stock remains down 43% since the
beginning of the year at $26.75 a share.
