It was a strong quarterly report that sent shares of Canada Goose (NYSE:GOOS), known for its $1,000 Parkas, higher in trading on Friday.
The luxury parka and winter wear company reported fiscal fourth quarter results that crushed in revenue expectations.
While analysts had been expecting a loss of 10 cents Canadian a share, the company had a surprise profit of 9 cents a share.
Revenues for the quarter also more than doubled, sending shares of the stock up 33.1%, its highest one-day gain ever. Revenue for the period at CA$124.8 million was a lot higher than the $51.1 million posted in the year ago period. (Note, one Canadian dollar is almost 77 cents in the U.S)
CEO of the company, Dani Reiss, remarked during the earnings call, “We have continued to drive amazing results across every area of the business. Team is full of passionate people who are overcommitted to achieving our board purpose and once again they accomplished a staggering amount this year which has set us up for a very strong fiscal 2019.”
He added, “These results reinforce my belief that we are still just scratching the surface of our global potential. As we continue to bring more Canada Goose to more of the world, we are resolutely focused on the long term and what we need to get there.”
He noted on highlights of the last year and said, “Here are just some of the highlights from this past year. We are bringing more Canada Goose to more of the world. We grew annual revenue by 39.7% in the United States and 52.6% in rest of world. Canada, our most developed market and our home market, also had a very healthy 47.5% growth rate. Our DTC channel reached $255 million in sales and 43.1% of our total revenue. We have built this from scratch in just under 4 years, while also growing wholesale faster than planned. This is unprecedented in our space. We are going deeper and driving growth with the world’s best retailers by collaborating in areas like merchandising, creative content, customer events and experiences we are building a better brand awareness and affinity while driving traffic and full-priced sell-through. Alongside the continued growth of our longstanding parkas styles, we have broadened our fall winter and spring collections and we successfully introduced knitwear, our first ever non-outerwear category.”
“And lastly, we continued to invest aggressively in our capacity. We successfully on-boarded over 700 new manufacturing employees in Canada in 1 year and as a result in-house manufacturing has risen to 35% from 30% as a percentage of units produced, while also growing total unit output significantly. These strategic achievements also drove outstanding financial performance across all of our key metrics,” Reiss continued.
Looking ahead, Canada Goose (NYSE:GOOS) has also projected annual revenue will grow by at least 20 percent over the next three fiscal years. The company said it also sees a 25% growth in adjusted net income per diluted share over the next three fiscal years.