Latest Videos

{{ currentStream.Name }}

Related Video

Continuous Play:
ON OFF

The information you requested is not available at this time, please check back again soon.

More Video

May 19, 2022

Canada Goose beats revenue forecast amid strong demand

Canada Goose says margins improved YOY in Q4, citing higher prices for its high-end goods

VIDEO SIGN OUT

Security Not Found

The stock symbol {{StockChart.Ric}} does not exist

See Full Stock Page »

Shares of Canada Goose Holdings Inc. rose in early trading Thursday after the parka-maker released an upbeat sales and profit forecast, highlighting robust demand for luxury goods in the face of rising inflation.

The Toronto-based company said it expects to see total revenue between $1.3 billion and $1.4 billion and adjusted profit between $1.60 and $1.90 per diluted share for its full 2023 financial year, beating analyst expectations.

The better-than-expected results came amid a deluge of disappointing retail earnings, including from U.S. department store chain Target Corp., which warned about pinched margins, triggering a 25 per cent selloff on Wednesday.

Canada Goose, on the other hand, saw its gross margin improve three percentage points to 69.1 per cent 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 on Thursday, Chief Executive Officer Dani Reiss said the company’s Canadian-based manufacturing operations helped shield it from global supply chain issues.

He noted 84 per cent of Canada Goose’s products are made in Canada, and 14 per cent are fabricated in Europe.

In a press release, the company attributed its margin growth to price increases and a “higher proportion of sales to wholesale partners compared to international distributors.”

Canada Goose also said COVID-related lockdowns in China have resulted in “significantly lower” store traffic and softer sales in that key market, but noted it expects a “gradual build up” as restrictions ease.

Shares of Canada Goose are down roughly 45 per cent since the beginning of the year.

The outdoor clothing company posted a net loss of nine cents per diluted share for the quarter ended April 3 compared with a profit of two cents per diluted share a year earlier.

Revenue for that 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 four cents per diluted share for its most recent quarter compared with an adjusted profit of a penny per diluted share a year ago.

-- With files from the Canadian Press