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shares Canadian goose Shares surged 16% after the company reported earnings on Thursday fiscal fourth quarter And announced that it expects sales to increase annually in fiscal 2025.
Here’s what the company does:
- Earnings per share: $5 CAD, which may not compare to the estimated $7 CAD
- income: 358 million Canadian dollars (US$263 million), which may not be comparable to LSEG’s expected Canadian dollars of 315.5 million Canadian dollars (US$232 million).
Revenue increased by 22% compared with the same period last year.
Canada Goose Chief Financial Officer Neil Bowden said on an earnings call with analysts that store comparisons were “relatively flat,” but year-over-year sales growth in the period was primarily driven by stores in Greater China — The region – which includes mainland China, Hong Kong, Macau and Taiwan – grew by 29.7%. Sales in the entire Asia-Pacific region except Greater China increased by 29.1%, and sales in North America increased by 24.5%.
Net profit for the fiscal fourth quarter ended March 31 rose to C$7.6 million, or 5 Canadian cents per share, from a loss of C$10 million, or 3 Canadian cents per share, a year earlier.
Bowden said the growth was supported by domestic shopping in mainland China and “strong growth” in Hong Kong and Macau driven by mainland tourists.
He added that online and in-store sales during this period “were driven by the company’s Lunar New Year marketing campaign, and because the Lunar New Year falls later than last year, the peak sales period was longer.”
Looking ahead, the finance chief said the company expects revenue to grow by a mid-single-digit percentage in the next fiscal year, which he expects will be guided by progress in its direct-to-consumer business. He also said he expects comparable store sales to grow “in the low single digits.”
Bowden said Canada Goose’s business growth in China and the Asia-Pacific region over the past three months was in line with expectations for single-digit growth in the luxury goods business. However, North America is under “greater pressure,” he said.
The upbeat results come after the company announced in March that it would cut 17% of its workforce. Canada Goose reported that the layoffs resulted in approximately 20 million Canadian dollars ($14.7 million) in productivity improvements and cost savings in the fiscal fourth quarter.
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