TORONTO, Canada — Canada Goose boosted its forecast for the year after quarterly results showed flagship stores and online lured in more shoppers for its premium winter clothing. US shares of the Toronto company jumped in early New York trading.
Based on the “strength” of the nine months ended December 31, Canada Goose said revenue will rise in the mid-to-high 30s on a percentage basis, compared with a November forecast of at least 30 percent. Last quarter, sales climbed 50 percent to C$399.3 million ($301 million), topping the C$360 million average of analysts’ estimates.
The outlook may help assuage concerns about the company’s expansion in China, where the brand has been the target of a boycott after a diplomatic row with Canada over the arrest of Huawei’s finance chief. Canada Goose said Thursday that the forecast includes the establishment of its country office in Greater China to “lead market development efforts.”
The company also opened stores in cities including Montreal and Vancouver, British Columbia, during the quarter, helping boost direct-to-consumer sales as the weather grew colder. The quarterly results show that analysts’ initial scans of North America e-commerce sites, which showed many models as sold out or selling fast, were on the mark.
Growth in direct-to-consumer sales helped boost margins during the quarter. The company maintained its forecast for Ebitda margins, which exclude items such as taxes and depreciation, to grow 150 percentage points for the fiscal year.
Canada Goose’s US shares soared 5.6 percent in premarket trading in New York.
By Sandrine Rastello; editors: Anne Riley Moffat, Jacqueline Thorpe, Jonathan Roeder.