[ad_1]
Chris So | Toronto Star | Getty Images
Shares of Canada Goose surged 16% on Thursday after the company reported earnings for the fiscal fourth quarter and announced it was expecting year-over-year sales growth for fiscal year 2025.
Here’s how the company did:
- Earnings per share: 5 Canadian cents, which may not compare with estimates of 7 Canadian cents
- Revenue: CA$358 million (US$263 million), which may not compare with the CA$315.5 million (US$232 million) expected by LSEG.
Revenue increased 22% from the same period a year ago.
Neil Bowden, Canada Goose’s chief financial officer, said on an earnings call with analysts that store comparisons were “relatively flat,” but year-over-year sales growth for the period was led by locations in Greater China — the region comprising Mainland China, Hong Kong, Macau and Taiwan — which saw a 29.7% increase. The broader Asia-Pacific region excluding Greater China was up 29.1%, and North American sales saw an increase of 24.5%.
Bowden said the growth was supported by domestic shopping in the Chinese mainland, as well as mainland Chinese tourists driving “strong growth” in Hong Kong and Macao.
Online and in-store sales for the period, he added, were “bolstered by the company’s Lunar New Year marketing campaign and complemented by a longer peak selling period, given the later date of the Lunar New Year compared to last year.”
Moving forward, the CFO said the company is expecting mid-single-digit growth in revenue, which he expects will be guided by advances in the direct-to-consumer business. He also said he expects comparable store sales to grow “somewhere in the low single digits.”
Bowden said the company’s performance in China and Asia Pacific over the past three months is in line with the view of mid-single-digit growth for the luxury business. North America, however, has been under “a little bit more pressure,” he said.
This performance comes after the company announced back in March that it was going to cut 17% of its corporate workforce. Canada Goose reported that the layoffs had generated about 20 million Canadian dollars, or around $14.7 million, in productivity improvements and cost savings for the fiscal fourth quarter.
[ad_2]
