Canada Goose’s shares soared 16% after the company reported earnings for the fiscal fourth quarter and announced expected year-over-year sales growth for fiscal year 2025. Earnings per share were 5 Canadian cents, falling short of estimates, while revenue reached CA$358 million, exceeding expectations. Revenue had grown by 22% compared to the same period the year before. The growth was primarily driven by regions in Greater China, with an increase of 29.7%, as well as in the broader Asia-Pacific region and North America.
Neil Bowden, Canada Goose’s CFO, attributed the sales growth to domestic shopping in the Chinese mainland and mainland Chinese tourists driving strong growth in Hong Kong and Macao. The company’s Lunar New Year marketing campaign and a longer peak selling period also boosted online and in-store sales. Moving forward, Bowden anticipates mid-single-digit revenue growth guided by advances in the direct-to-consumer business, with comparable store sales expected to increase in the low single digits. While performance in China and Asia Pacific has been strong, North America has faced more pressure.
The company’s performance in the past quarter aligns with the anticipated mid-single-digit growth for the luxury business, particularly in China and Asia Pacific. In contrast, North America has experienced more challenging conditions. Canada Goose had previously announced a 17% reduction in its corporate workforce in March, resulting in approximately 20 million Canadian dollars or $14.7 million in productivity improvements and cost savings for the fiscal fourth quarter. Despite the challenges in North America, the company’s overall performance has shown positive growth.
Canada Goose’s strong sales growth in regions such as Greater China and Asia Pacific has helped drive overall revenue increases during the fiscal fourth quarter. With anticipated mid-single-digit revenue growth for the luxury business, the company is focusing on advancements in its direct-to-consumer business to drive sales. The success of their marketing campaigns during the Lunar New Year period and a longer peak selling period have contributed to bolstered online and in-store sales. Despite challenges in North America, Canada Goose remains optimistic about its future growth prospects.
The company’s decision to reduce its corporate workforce earlier in the year has led to cost savings and productivity improvements, further supporting its financial performance in the fiscal fourth quarter. While North America has faced pressure, strong sales growth in China and Asia Pacific has offset some of these challenges. Moving forward, Canada Goose is optimistic about its growth potential, with a focus on driving sales through its direct-to-consumer business and marketing initiatives. The company’s ability to adapt to changing market conditions and capitalize on growth opportunities in key regions has positioned it for continued success in the luxury outerwear market.
In conclusion, Canada Goose’s positive financial performance in the fiscal fourth quarter, driven by strong sales growth in Greater China and Asia Pacific, has led to increased revenue and exceeded expectations. By focusing on advancements in the direct-to-consumer business and marketing campaigns, the company aims to sustain mid-single-digit revenue growth in the luxury market. Despite challenges in North America and workforce reductions earlier in the year, Canada Goose remains optimistic about its future prospects and is well-positioned to capitalize on growth opportunities in key regions.
