Canada Goose boosts sales on Asian popularity, new products

Article content

Canada Goose Holdings Inc. reported higher-than-expected revenue as its Asian stores boosted sales and it introduced new lightweight products for warmer seasons.

The Toronto-based luxury parka maker booked revenue of $88.1 million for the fiscal first quarter ended June 30, beating the average analyst estimate of about $86 million. Sales grew 3.2 per cent on a constant currency basis from a year earlier.

Article content

The first quarter, running from April to June, is the slowest season and typically a money-losing period for Canada Goose, which is most-known for its cold weather outerwear. It has been working to expand its lightweight apparel and footwear options to increase sales in different seasons and environments.

“Our spring-summer 2024 collection attracted new and existing customers to shop in our stores and online, contributing to revenue growth in our first quarter, which was especially robust in the Asia Pacific region,” chief executive Dani Reiss said in a statement.

The retailer has also been trying to lift sales in the Asia Pacific region, which is home to over 40 per cent of its stores. Luxury brands globally have been seeing a decline of spending in Asia, partly because China’s economic growth has slowed.

Canada Goose managed to buck the trend, seeing 25 per cent growth in revenue in the region during the quarter, while North American sales dropped three per cent.

Chief financial officer Neil Bowden said on a call with analysts that the company continued to see strength in mainland China and saw growth in Japan as the weak yen led to an increase in tourist spending. This growth was partially offset by consumer weakness in other places.

Article content

“When you get outside of mainland and into places like Hong Kong, Macau, Taiwan, it seems like the consumer pressure there and the traffic and the willingness to spend is much more under pressure,” Bowden said.

The company lost 79 Canadian cents per share on an adjusted basis, broadly in line with analysts’ forecasts, and didn’t change its outlook for the fiscal year.

Canada Goose shares fell 3.6 per cent on Thursday as of 10:20 a.m. in New York. Its shares have declined 2.5 per cent this year in New York trading through Wednesday’s close.

Bloomberg.com

Share this article in your social network