Chris So | Toronto Star | Getty Images
Shares Canada goose rose 16% on Thursday after the company reported earnings for fiscal fourth quarter and announced that it expects year-on-year sales growth in fiscal 2025.
Here’s what the company did:
- Earnings per share: 5 Canadian cents, which may not compare to the 7 Canadian cents valuation.
- Income: C$358 million ($263 million), which may not compare to the C$315.5 million ($232 million) expected by LSEG.
Revenue was up 22% compared to the same period a year ago.
Neil Bowden, Canada Goose’s chief financial officer, said on a call with analysts that store comparisons were “relatively stable,” but annual sales growth during the period was led by stores in Greater China, the region that includes mainland China. Hong Kong, Macau and Taiwan – where the increase was 29.7%. The broader Asia-Pacific region, excluding Greater China, saw sales growth of 29.1%, while sales in North America increased by 24.5%.
Net income for the fiscal fourth quarter ended March 31 fell to C$7.6 million, or 5 Canadian cents per share, compared with a loss of C$10 million, or 3 Canadian cents per share, in the year-earlier period.
Bowden said growth was supported by domestic purchases on the Chinese mainland, as well as mainland tourists driving “strong growth” in Hong Kong and Macau.
Online and in-store sales during the period, he added, “were bolstered by the company’s Lunar New Year marketing campaign and complemented by a longer peak sales period given the later date of Lunar New Year compared to last year.”
Looking ahead, the CFO said the company expects mid-single-digit percentage revenue growth for the next fiscal year, which he expects will be driven by advances in direct-to-consumer sales. He also said he expects comparable store sales to grow “in the mid-single digits.”
Bowden said Canada Goose’s business growth in China and Asia-Pacific over the past three months is in line with its forecast for mid-single-digit growth in its luxury business. North America, however, was under “a little more pressure,” he said.
The upbeat results come after the company announced in March that it would cut 17% of its corporate workforce. Canada Goose said the layoffs generated about C$20 million ($14.7 million) in productivity gains and cost savings in the fiscal fourth quarter.