Canada Goose Defies Brick-and-Mortar Gloom With Retail PushBy
Its first results as a public company send shares soaring
First two physical stores have ‘far surpassed’ expectations
Canada Goose Holdings Inc., making a retail push during a shaky time for the industry, said its first two brick-and-mortar stores have “far surpassed” expectations, contributing to stronger results in its inaugural quarter as a public company.
Sales gained 22 percent last quarter, the maker of down parkas and other luxury goods said on Friday. While the Toronto-based company posted a loss -- partly due to expenses tied to the initial public offering -- the red ink was lower than analysts predicted. That helped send the shares up as much as 13 percent in New York trading.
Canada Goose, known for $900 jackets with fur-lined hoods, is swimming upstream at a time when retailers are closing hundreds of stores. The company opened physical locations in New York and Toronto and bolstered its spring lineup -- part of a bid to push beyond its stronghold in winter clothes.
“We continued our rapid top- and bottom-line growth,” Chief Executive Officer Dani Reiss said in a statement. That included opening the “flagship retail stores -- both of which far surpassed our expectations,” he said.
The stock jumped to a record high of $21.05, marking its biggest intraday gain since March 16. Canada Goose, which held its IPO in March, was already up 46 percent this year.
Excluding some items, the company’s loss was 15 Canadian cents a share in the fiscal fourth quarter. Analysts had projected a deficit of 20 cents. Revenue climbed to C$51.1 million ($37.8 million) in the period, which ended March 31.
Canada Goose expects revenue to grow by a percentage in the mid- to high-teens this year, with adjusted profit growing about 20 percent .