Key points:
- Canada Goose reports earnings before the open Thursday
- Revenue tops analyst estimates
- Luxury fashion demand remains resilient
Canada Goose topped Wall Street revenue estimates when it reported fiscal first-quarter results Thursday before the bell, demonstrating that demand for luxury goods remains resilient.
The luxury winter clothing company reported an adjusted loss per share of CAD$0.56 compared to a loss of CAD$0.46 a year ago on revenue of CAD$69.9 million compared to CAD$66.3 million during the same period last year.
“Our first quarter fiscal 2023 results reflect strong early leading indicators for the year, and we have seen encouraging trends in store productivity,” said Dani Reiss, Chairman and CEO.
Affluent consumers have been undeterred by soaring inflation, boosting sales of Canada Goose's luxury parkas and jackets. The company said Q1 revenue grew 24.2%.
Canada Goose said revenue growth in its home region of Canada was primarily driven by stores that were open in Q1, which experienced closures due to Covid-19 restrictions in the comparative quarter. Meanwhile, revenue growth in the US was boosted by DTC comparable sales growth and in EMEA the revenue increase was driven mainly by significant retail network expansion and stores that were open in Q1 2023 but had experienced closures due to Covid-19 restrictions in the comparative quarter.
Revenue in the Asia Pacific region declined from Q1 2022, with eight out of Canada Goose's 16 stores in Mainland China experienced closures due to Covid restrictions in Q1 2023.
Looking ahead, Canada Goose said it expects revenue for fiscal 2023 to be between CAD$1.3 billion and CAD$1.4 billion, with adjusted earnings per share between CAD$1.60 and $1.90.
For fiscal Q2 2023, it sees revenue between CAD$255 million and CAD$275 million, with adjusted earnings per share between CAD$0.02 and CAD$0.14.
