Canada Goose Holdings Inc (NYSE:GOOS) (TSX:GOOS) posted on Thursday a fiscal first-quarter 2019 loss that was narrower than expected as revenue surged due to strong demand for its popular luxury coat business.
Earnings per share came in at a loss of C$0.17, compared with the consensus estimate of a loss of C$0.21. In the same period last year, the company reported a loss of C$0.11. Revenue though soared 58.5% to C$44.7mln, compared with C$28.2mln in the same period a year ago.
Canada Goose said the charge in revenue was led by the direct-to-consumer (DTC) segment, where sales nearly tripled to C$23.2mln in the quarter from C$8.3mln a year ago. The company forecast annual revenue growth of 20% in fiscal 2019.
"The increase was primarily due to the strong performance of all existing and new retail stores, with particularly significant contributions from well-established locations. E-commerce also had a positive impact on the quarter," it said in a statement.
Shares for the dual-listed company were higher after the results were released. The stock went up 3.12% to C$74.94 in Toronto, having hit a session peak of C$77.38. The shares gained 2.77% to US$57.46 in New York, trading as high as US$59.43.
The maker of luxury parkas is boosting margins by seizing control of its manufacturing and retail sales. The company is opening more of its own stores, entering markets in China and Hong Kong. The firm also got into producing new lines such as knitwear.
Canada Goose said some of its losses were driven in part by higher unallocated corporate expenses in a seasonally small quarter, partially offset by larger operating income contributions from both channels. There was also growth in spending for marketing, corporate headcount and IT, as well as higher professional fees and other costs relating to public company compliance.
Canada Goose is based in Toronto, Canada. It is a luxury coat maker, especially of parkas costing hundreds of dollars.