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Canada Goose Tops Estimates as Luxury Goods Yet to Feel Inflation Impact

Published 19/05/2022, 15:22
© Reuters.
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By Sam Boughedda

Investing.com -- Shares of Canada Goose Holdings (NYSE:GOOS) surged in early Thursday trading after the company beat earnings estimates and provided an upbeat outlook for fiscal 2023.

The company told investors it closed fiscal 2022 with record sales for the year and has confidence in its ability to accelerate earnings growth in fiscal 2023 and beyond.

The luxury winter clothing company posted adjusted earnings of C$0.04 per share on revenue of C$223.1 million. Analysts polled by Investing.com expected a loss per share of C$0.01 on revenue of C$175.95 million. 

Direct to consumer revenue increased by 8% to C$185.4m from C$171.6m, driven by higher revenue from existing stores. However, it was partially offset by a 12.3% decrease in e-commerce revenue.

The luxury goods market has yet to feel the impact of inflation, with Watches of Switzerland and LVMH (EPA:LVMH) both recently reporting a rise in sales.

Canada Goose sees total revenue for fiscal 2021 between C$1.3 billion to C$1.4 billion, above the C$1.1 billion in fiscal 2022.

Adjusted net income per share is expected to be between C$1.60 to C$1.90.

For the first quarter, the company currently expects revenue of C$60 million to C$65 million, with an adjusted net loss per share of C$0.64 to C$0.60.

“We are expanding to new markets with new partnerships and stores complemented by a laser focus on customer experience. At the same time, we are leveraging our successful playbook to continue to expand product categories and year-round product relevance," said Dani Reiss, Canada Goose's Chief Executive Officer.

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