TORONTO, Canada — Freezing shoppers can’t get enough of Canada Goose Holdings Inc.’s parkas.
The Toronto-based company reported quarterly profit that beat analysts’ estimates as customers snatched the made-in-Canada luxury garments at new e-commerce sites and flagship stores including London and Chicago. Sales to wholesalers fell after the company moved some shipments forward, bringing the two sales channels almost to par.
Below-normal temperatures hit parts of Canada and the US in December, followed by more cold spells that raised prospects for North American demand into the new year.
The six-decade-old company is defying the retail malaise as consumers flock to parkas that were originally designed for Far North use and cost as much as $1,495. The share price has almost tripled since Canada Goose went public in March, as its direct-to-consumer strategy helps boost margins while it keeps adding new markets.
Profit, excluding some items, rose to 58 cents a share in the fiscal third-quarter ended December 31, more than the highest analyst estimate. Direct-to-consumer revenue jumped to C$131.6 million ($105.6 million) from C$72 million a year earlier as the company added seven e-commerce channels and five stores to its network. Overall revenue jumped 27 percent to C$265.8 million, the company said in a statement Thursday.
Canada Goose, which added more than 700 employees last year, said it hired Jonathan Sinclair as its new chief financial officer. Sinclair, who is CFO at Jimmy Choo, will join mid-year, replacing John Black, who is retiring.
By Sandrine Rastello; editors: Crayton Harrison, David Scanlan