Chris So | Toronto Star | Getty Images
Shares Canada goose rose 16% on Thursday after the company reported 2017 earnings fiscal fourth quarter and announced that it expects year-over-year sales growth in fiscal year 2025.
Here’s how the company coped:
- Earnings per share: 5 Canadian cents, which may not match the estimate of 7 Canadian cents
- Income: CAD 358 million (USD 263 million), which may fall tiny of the CAD 315.5 million (USD 232 million) expected by LSEG.
Revenues increased by 22% compared to the same period a year ago.
Neil Bowden, Canada Goose’s chief financial officer, said during an earnings call with analysts that store comparisons were “relatively flat,” but year-over-year sales growth during the period was driven by locations in Greater China – the region that includes mainland China , Hong Kong, Macau and Taiwan – where an raise of 29.7% was recorded. The broader Asia-Pacific region, excluding Greater China, grew 29.1%, and North American sales grew 24.5%.
Net income for the fiscal fourth quarter ended March 31 increased 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 prior-year period.
Bowden said growth was supported by domestic purchases in mainland China, as well as mainland tourists driving “forceful growth” in Hong Kong and Macau.
He added that online and in-store sales during the period were “enhanced by the company’s Lunar Up-to-date Year marketing campaign and complemented by a longer period of peak sales given the later date of Lunar Up-to-date Year compared to last year.”
Going forward, the CFO said the company expects mid-single-digit percentage growth in revenue in the next fiscal year, which he believes will be driven by advances in the direct selling industry. He also said he expects comparable store sales growth to be “somewhere in the low single digits.”
Bowden said Canada Goose’s business growth in China and Asia-Pacific over the past three months is in line with expectations for mid-single-digit growth in the luxury industry. However, North America is under “a little more pressure,” he said.
These upbeat results come after the company announced in March that it would lay off 17% of its corporate staff. Canada Goose said the layoffs resulted in about C$20 million ($14.7 million) in productivity improvements and cost savings in the fiscal fourth quarter.
