Canada Goose Holdings Inc reported a smaller-than-expected quarterly loss as the luxury apparel retailer sold more products across its sales platforms, sending its shares up 5.3 percent on the Toronto Stock Exchange.
After a red hot debut in March, Canada Goose has been opening stores internationally and increasing its presence on e-commerce sites to meet a growing demand for its jackets and parkas.
“Many retailers are specifically asking us to accelerate shipments so they can get our product on the floor earlier,” Chief Executive Dani Reiss said on a post-earnings call on Thursday.
The company’s direct-to-consumer sales, which includes sales from its flagship stores and online platforms, surged more than sixfold to $8.3 million (US$6.5 million), while revenue from its wholesale unit increased 38.2 percent to $19.9 million in the first quarter ended June 30.
Separately, Canada Goose said it would open flagship stores in Boston, Calgary and Tokyo, and is on track to open stores in London and Chicago as planned, later this year. Sticking to its “Made in Canada” pledge, the company opened its fifth factory in Ontario in June and also said it expanded its Québec manufacturing facility in the reported quarter.
The luxury retailer specializes in making winter apparels such as scarves, mitts, hats, gloves, snow pants, which are sold in more than 30 countries.
Canada Goose’s comprehensive loss narrowed to $12 million, or 11 cents per share, from $14 million, or 14 cents per share, a year earlier.
Excluding one-off items, the Toronto-based company posted a loss of 13 cents per share, while analysts on average were expecting a loss of 19 cents, as per Thomson Reuters I/B/E/S. Revenue surged 79.7 percent to $28.2 million, well ahead of analysts’ average estimate of $17 million.
Canada Goose’s shares rose as much as 7.3 percent to $25.78 on the Toronto Stock Exchange, and U.S.-listed shares increased as much as 9 percent to US$20 in early trading on Thursday.
Update: Canada Goose raised about $390 million from its initial public offering in March. U.S. private equity firm Bain Capital, which acquired the company in 2013, continues to be its leading shareholder.
(Reporting by Ahmed Farhatha in Bengaluru; Editing by Martina D’Couto)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of Reuters/Fred Thornhill