Chris So | Toronto Star | fake images
Actions of Canada Goose rose 16% on Thursday after the company reported earnings for the fiscal fourth quarter and announced it expected year-over-year sales growth into fiscal 2025.
Here's how the company fared:
- Earnings per share: 5 Canadian cents, which may not compare to estimates of 7 Canadian cents
- Revenue: 358 million Canadian dollars (263 million US dollars), which may not compare to the 315.5 million Canadian dollars (232 million US dollars) expected by LSEG.
Revenue increased 22% compared to the same period last year.
Neil Bowden, Canada Goose's chief financial officer, said on an earnings call with analysts that store comps were “relatively flat,” but year-over-year sales growth for the period was led by locations in Greater China, the region that includes mainland China. Hong Kong, Macau and Taiwan, which saw an increase of 29.7%. The broader Asia-Pacific region, excluding Greater China, rose 29.1% and sales in North America saw a 24.5% increase.
Net income for the fiscal fourth quarter ended March 31 rose to $7.6 million Canadian dollars, or 5 Canadian cents per share, from a loss of $10 million Canadian dollars, or 3 Canadian cents per share, in the same period of the previous year.
Bowden said the growth was supported by domestic shopping in mainland China, as well as mainland tourists driving “strong growth” in Hong Kong and Macau.
Online and in-store sales during the period, it added, were “reinforced by the company's Lunar New Year marketing campaign and complemented by a longer peak sales period, given the later date of the Lunar New Year compared to with last year.”
Looking ahead, the CFO said the company expects mid-single-digit percentage revenue growth for the next fiscal year, which he hopes will be guided by advances in the direct-to-consumer business. He also said that he expects comparable store sales to grow “somewhere in the low single digits.”
Bowden said the growth of Canada Goose's business in China and Asia Pacific over the past three months is in line with the vision of mid-single-digit growth for the luxury business. North America, however, has been under “a little bit more pressure,” she said.
This upbeat performance comes after the company announced in March that it was cutting 17% of its corporate workforce. Canada Goose reported that the layoffs had generated about C$20 million (US$14.7 million) in productivity improvements and cost savings for the fiscal fourth quarter.
