Canada Goose Holdings Inc on Thursday forecast annual revenue above $1 billion for the first time, after surging online sales and strong Chinese demand helped the apparel maker post a surprise profit.
U.S.-listed shares of Canada Goose rose five per cent in premarket trade as global e-commerce revenue jumped 123.2 per cent, with the COVID-19 pandemic accelerating a shift to online shopping.
Direct-to-consumer sales in Mainland China also doubled from a year earlier.
China’s wealthy, who usually make the bulk of their purchases while traveling abroad, are shopping more online and in local stores as restrictions ease.
The luxury winterwear maker is doubling down on its investment plans in China and opening new stores to cater to affluent consumers, who cannot travel as freely as they used to during the health crisis.
Overall revenue rose about 48 per cent to $208.8 million in the fourth quarter ended March 28, beating analysts’ estimates of $164.8 million, according to IBES data from Refinitiv.
Excluding items, Canada Goose earned a surprise profit of 1 Canadian cent per share, while analysts on average were expecting a loss of 11 Canadian cents.
The company also expects total revenue to exceed $1 billion in fiscal 2022, with its high-margin, direct-to-consumer business making up nearly 70 per cent of it.
Aiming to boost profit margins, Canada Goose has sharpened focus on its consumer business since the onset of the pandemic.
Analysts expect revenue to soar 30.2 per cent to $1.12 billion.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Devika Syamnath)
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