Chris So | Toronto Star | Getty Images
Shares of Canada goose rose 16% on Thursday after the corporate reported earnings fourth fiscal quarter and announced that it expects year-on-year sales growth for the 2025 fiscal yr.
This is how the corporate did it:
- Earnings per share: 5 Canadian cents, which might not be comparable to estimates of seven Canadian cents
- Revenue: 358 million Canadian dollars (263 million US dollars), which might not be comparable to the 315.5 million Canadian dollars (232 million US dollars) expected by LSEG.
Sales increased by 22% in comparison with the identical period last yr.
Neil Bowden, Canada Goose’s chief financial officer, said in a conference call with analysts that store comparisons were “relatively flat,” but year-over-year sales growth within the period was led by locations in Greater China – the region that features mainland China . Hong Kong, Macau and Taiwan saw a rise of 29.7%. The broader Asia-Pacific region excluding Greater China was up 29.1%, and North America sales were up 24.5%.
Net income for the fiscal fourth quarter ended March 31 rose to CA$7.6 million, or 5 Canadian cents per share, after a lack of CA$10 million, or 3 Canadian cents per share, within the year-earlier period.
Bowden said growth was supported by domestic shopping in mainland China in addition to mainland tourists, which fueled “strong growth” in Hong Kong and Macau.
He added that online and in-store sales through the period “were bolstered by the company’s Lunar New Year marketing campaign and complemented by a longer peak sales period as the Lunar New Year occurred later compared to the previous year.”
The finance chief said the corporate expects mid-single-digit revenue growth for the following fiscal yr, which he said might be driven by progress in its direct sales business. He also said he expects comparable store sales to grow “somewhere in the low single digits.”
Bowden said Canada Goose’s business growth in China and Asia Pacific over the past three months is consistent with estimates of mid-single-digit growth for its luxury business. However, North America was under “a little more pressure,” he said.
This positive development comes after the corporate announced back in March that it might cut 17% of its workforce. Canada Goose reported that the layoffs resulted in productivity improvements and price savings of about CA$20 million (US$14.7 million) within the fiscal fourth quarter.
