Canada Goose beats quarterly revenue estimates, pushing up share price

·2 min read

Sales of Canada Goose Holdings Inc.'s luxury parkas are heating up as economies reopen around the world, with the planned launch of footwear next week expected to send revenues sizzling.

In its latest quarterly earnings released Friday, the Toronto-based outerwear maker reported higher sales in retail stores and online, while early wholesale orders also pushed up revenue.

Canada Goose's second quarter revenue hit $232.9 million for the three months ended Sept. 26. That's nearly 20 per cent above $194.8 million for the same period last year, which had also included a $28.8 million bump in revenue from the temporary sale of personal protective equipment like masks.

It also handily beat the $206.1 million analysts had expected, according to financial data firm Refinitiv.

"We see strong demand, positive leading indicators and we feel very good about the business heading into peak season," Dani Reiss, Canada Goose president and chief executive officer, told analysts during a conference call.

The company raised its financial outlook for the remainder of the year, with Reiss expressing confidence in Canada Goose's first ever footwear collection.

"We're into our strongest selling season with the launch of an exciting ... new category," he said. "Canada Goose footwear is one of the most significant milestones in our more than six decade history."

Canada Goose also owns Baffin, a Canadian designer and manufacturer of performance outdoor and industrial footwear. But it hasn't previously made footwear under the Canada Goose brand.

The footwear launch, which Reiss said is less than a week away, comes after "rigorous extreme user testing."

"We do not bring anything to market until our global team of experts has validated it," he said, noting that adventurers, athletes, researchers and cinematographers have "logged thousands of kilometres" testing the footwear.

Meanwhile, global e-commerce sales of the company's growing performance luxury apparel collection grew by 33.8 per cent, driven by growth in all major existing markets.

Its direct-to-consumer sales also surged 85.9 per cent in China.

Canada Goose said it earned a net income of $9 million or eight cents per diluted share for the quarter ended Sept. 26 compared with a profit of $10.4 million or nine cents per diluted share a year ago.

On an adjusted basis, the company said it earned $13.2 million or 12 cents per diluted share, compared with an adjusted profit of $11.5 million or 10 cents per diluted share a year ago.

Analysts on average had expected an adjusted loss of nine cents per share for the quarter, according to Refinitiv.

Canada Goose shares climbed nearly 20 per cent in midday trading to $60.18, up $9.77 from the previous close to $50.41.

This report by The Canadian Press was first published Nov. 5, 2021.

Companies in this story: (TSX:GOOS)

Brett Bundale, The Canadian Press

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