Shares of Canada Goose soared 16% after the company reported earnings for the fiscal fourth quarter and predicted year-over-year sales growth for fiscal year 2025. The earnings per share were 5 Canadian cents, while revenue reached CA$358 million, a 22% increase from the same period a year ago. Neil Bowden, the company’s CFO, highlighted the strong sales growth in Greater China, the broader Asia-Pacific region, and North America, contributing to the positive results.
Net income for the fiscal fourth quarter swung to CA$7.6 million, or 5 Canadian cents per share, a significant improvement from the previous year. Bowden attributed this growth to domestic shopping in the Chinese mainland and mainland Chinese tourists driving sales in Hong Kong and Macao. The company’s performance was also bolstered by its Lunar New Year marketing campaign and a longer peak selling period due to the later date of the Lunar New Year compared to the previous year.
Looking ahead, Canada Goose expects mid-single-digit percentage revenue growth in the next fiscal year, driven by advances in the direct-to-consumer business. Bowden also anticipates low single-digit growth in comparable store sales. The company’s performance in China and Asia Pacific aligns with the forecast of mid-single-digit growth for the luxury business, while North America faces some pressure. In March, Canada Goose announced workforce layoffs, which generated productivity improvements and cost savings for the fiscal fourth quarter.
The strong sales growth in Greater China, the broader Asia-Pacific region, and North America has been a driving force behind Canada Goose’s recent success. Online and in-store sales were supported by the Lunar New Year marketing campaign, leading to increased revenue. The company’s financial performance is a reflection of its ability to adapt to changing market conditions and drive consistent growth across different regions.
Canada Goose’s positive results in the fiscal fourth quarter are a testament to its strategic initiatives and focus on key markets. The company’s CFO emphasized the importance of the direct-to-consumer business in driving revenue growth in the upcoming fiscal year. By leveraging its strengths in different regions and implementing cost-saving measures, Canada Goose aims to maintain its growth trajectory and continue delivering value to shareholders.
Overall, Canada Goose’s strong performance in the fiscal fourth quarter, driven by robust sales growth in key regions, underscores the company’s resilience and ability to navigate challenging market conditions. With a focus on direct-to-consumer sales and strategic cost management initiatives, Canada Goose is well-positioned to sustain its growth momentum and capitalize on opportunities in the luxury outerwear market.
