Finance
Canada Goose (GOOS) Q4 2024 Earnings Report
Chris So | Toronto star | Getty Images
Shares of Canada goose rose 16% on Thursday after the company reported earnings for the fiscal fourth quarter and announced that it expected year-over-year revenue growth for fiscal year 2025.
Here’s how the company did it:
- Profit per share: 5 Canadian cents, which may not compare to estimates of 7 Canadian cents
- Gain: CA$358 million (US$263 million), which may not compare to the CA$315.5 million (US$232 million) that LSEG expects.
Turnover increased by 22% compared to the same period a year ago.
Canada Goose Chief Financial Officer Neil Bowden said on an earnings call with analysts that store comparisons were “relatively flat” but that year-over-year sales growth for the period was led by locations in Greater China, the region that includes the mainland. China, Hong Kong, Macau and Taiwan – which saw an increase of 29.7%. The broader Asia Pacific region, excluding Greater China, rose 29.1%, and North American sales rose 24.5%.
Net income for the fiscal fourth quarter ended March 31 rose to CA$7.6 million, or 5 Canadian cents per share, compared with a loss of CA$10 million, or 3 Canadian cents per share, in the year-ago period.
Bowden said growth was supported by domestic shopping in mainland China, as well as mainland tourists driving “strong growth” in Hong Kong and Macau.
Online and in-store sales for the period, he added, were “boosted by the company’s Lunar New Year marketing campaign and complemented by an extended peak sales period, given the later date of the Lunar New Year compared to last year.”
Looking ahead, the chief financial officer said the company expects mid-single-digit percentage revenue growth for the next fiscal year, which he expects will be led by advances in its direct-to-consumer business. He also said he expects comparable store sales to grow “somewhere in the low single digits.”
Bowden said Canada Goose’s sales growth in China and Asia Pacific over the past three months is in line with expectations of mid-single-digit growth for the luxury sector. North America, however, is “under a little more pressure,” he said.
This positive performance comes after the company announced in March that it would be cutting 17% of its workforce. Canada Goose reported that the layoffs resulted in approximately CA$20 million (US$14.7 million) in productivity improvements and cost savings for the fiscal fourth quarter.
