Chris So | Toronto Star | Getty Images
Shares of Canada goose rose 16% on Thursday after the company reported fiscal fourth-quarter results and said it expects year-over-year revenue growth for fiscal 2025.
This is how the company did it:
- Earnings per share: 5 Canadian cents, which may not be comparable to estimates of 7 Canadian cents
- Revenue: 358 million Canadian dollars (263 million US dollars), which may not be comparable to the 315.5 million Canadian dollars (232 million US dollars) expected by LSEG.
Sales increased by 22% compared to the same period last year.
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 in the period was led by locations in Greater China – the region that includes mainland China . Hong Kong, Macau and Taiwan saw an increase 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 loss of CA$10 million, or 3 Canadian cents per share, in the year-earlier period.
Bowden said growth was supported by domestic shopping in mainland China as well as mainland tourists, which fueled “strong growth” in Hong Kong and Macau.
He added that online and in-store sales during 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 company expects mid-single-digit revenue growth for the next fiscal year, which he said will be driven by progress in its direct-to-consumer 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 came after the company announced in March that it would cut 17% of its workforce. Canada Goose reported that the layoffs resulted in productivity improvements and cost savings of about CA$20 million (US$14.7 million) in the fiscal fourth quarter.
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2024-05-16 20:34:21
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