Canada Goose earnings beat on strong jacket sales
An arctic airmass fell over part of the U.S. this week, bringing record cold temperatures weeks before the holiday shopping season kicks into high gear.
And at luxury coat maker Canada Goose (GOOS), that means showtime.
“We are off to a great start,” Canada Goose CEO Dani Reiss tells Yahoo Finance about his early read on the holidays. “I am optimistic and think the momentum will continue.”
Shares were up about 7% in pre-market trading.
Judging by Canada Goose’s latest earnings report, Reiss has good reason to be hopeful on the holidays.
Canada Goose, which sells $1,000 parkas, had very few blemishes in its second fiscal quarter.
The Toronto-based retailer on Wednesday reported earnings of 55 cents a share Canadian (57 cents U.S.), exceeding estimates by 14 cents. Sales increased 28% to C$294 million. The company saw sales gains in all lines of business: department stores, online and within its own budding network of standalone retail stores.
One red flag to note was that gross profit margins came in at 54.6% vs. 55.8% a year ago. Weakness stemmed from Canada Goose’s wholesale business, which it blamed on a tough comparison to a year ago. Analysts expected gross margins of 55.5%.
Reiss said Canada Goose’s wholesale business remains strong, and it’s driving traffic to key department store customers.
The company reiterated its full-year guidance for sales growth of at least 20% and adjusted net income growth of at least 25%.
Brian Sozzi is an editor-at-large and co-anchor of The First Trade at Yahoo Finance. Follow him on Twitter @BrianSozzi
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