TORONTO - Canada Goose Holdings Inc . (NYSE: NYSE:GOOS) has reported a significant beat on both earnings and revenue for its first quarter, sending shares soaring by 7.3%.
The luxury outerwear brand posted adjusted earnings per share (EPS) of Cdn$0.19, surpassing the analyst estimate of Cdn$0.05 by Cdn$0.14. Revenue also exceeded expectations, coming in at Cdn$358 million against the consensus estimate of Cdn$233.48 million.
The company's robust performance is a reflection of its strategic initiatives and operational discipline, which have paid off in a challenging environment marked by high interest rates and geopolitical uncertainty. Canada Goose's total revenue for the quarter marked a 22% increase compared to the same period last year, indicating strong growth momentum.
Chairman and CEO Dani Reiss commented on the results, highlighting the brand's iconic status and disciplined strategy execution as key drivers behind the quarterly success. The company's focus on expanding its retail presence, growing across product categories, and streamlining its organization were noted as contributing factors to the positive outcome.
Looking ahead, Canada Goose introduced its fiscal 2025 annual guidance, expecting total revenue growth in the low-single-digits year-over-year. Direct-to-consumer (DTC) comparable sales are projected to grow in the low-single-digits, with additional revenue anticipated from new stores and shop-in-shops. Despite a planned 20% decrease in wholesale revenue, the company anticipates a mid-single digit percentage increase in pricing over fiscal 2024.
The company also forecasts a consolidated gross margin percentage similar to fiscal 2024 and an expansion of approximately 100 basis points in non-IFRS adjusted EBIT margin compared to the previous year. Adjusted net income per diluted share is expected to grow by a mid-teen percentage year-over-year.
Investors have responded positively to the earnings and revenue beat, as well as the optimistic outlook for fiscal 2025, leading to a significant uptick in the company's stock price. The market's reaction underscores confidence in Canada Goose's ability to navigate through economic headwinds and continue delivering strong financial performance.
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