Canada Goose expects annual sales above C$1 billion for the first time

Canada Goose Holdings Inc on Thursday forecast annual revenue above C$1 billion for the first time after a surge in online sales and strong demand in China helped the clothing maker post a surprise profit.

US-listed Canada Goose shares rose 5% in pre-listing trading, while global e-commerce revenues rose 123.2% and the Covid-19 pandemic accelerated the shift to online shopping.

Direct sales to consumers in mainland China also doubled compared to the previous year.
Wealthy Chinese, who typically do most of their shopping while traveling abroad, are increasingly shopping online and locally as restrictions are lifted.

The luxury winter wear maker is ramping up its investment plans in China and opening new stores to meet the needs of affluent consumers who cannot travel as freely as they did during the health crisis.

Total revenue rose about 48% to C$208.8 million ($172.16 million) in the fourth quarter ended March 28, topping analysts’ estimates of C$164.8 million, according to IBES data from Refinitiv.

After excluding items, Canada Goose unexpectedly posted a profit of 1 Canadian cent per share, while analysts on average expected a loss of 11 Canadian cents.

The company also expects total revenue in fiscal year 2022 to exceed C$1 billion, with nearly 70% of that revenue coming from its high-margin direct-to-consumer business.

Seeking to increase profit margins, Canada Goose has focused on its consumer business since the beginning of the pandemic.

Analysts are forecasting revenue growth of 30.2% to C$1.12 billion.