Shoppers are once again lining up outside Canada Goose stores, with the strong rebound in foot traffic and demand for the maker’s expanding collection of luxury parkas, the company said Thursday.
“Our stores were busy and the familiar lines returned,” Canada Goose Holdings President and CEO Dani Reiss observed to analysts on a conference call.
“Our stores in all markets performed well, with traffic picking up,” particularly in the Asia-Pacific region and in Europe, the Middle East, Africa and Latin America, Reiss said.
His comments came as Canada Goose posted a more than 30% increase in revenue in the fourth quarter ended April 2.
The company reported a loss of 3.1 million in the last quarter of its 2023 fiscal year, compared with a loss of 9.1 million a year earlier.
The outerwear maker said it lost 3 cents per share in its quarter ended April 2, compared with a loss of 9 cents per share reported in the previous fourth quarter.
Revenue for the most recent quarter totaled 293.2 million, up from 223.1 million a year earlier.
While Canada Goose saw strong sales in Asia and other regions including Europe, demand in North America was more mixed, Reiss noted.
“We saw lower sales in the United States during our fourth quarter, as the overall growth we saw in our stores was offset by lower e-commerce results,” he explained.
“We attribute this to the macroeconomic environment in the quarter, where economic uncertainty affected consumer behavior. »
Still, an acceleration in U.S. sales late in the fourth quarter and early in the current quarter offers “confidence in business recovery,” Reiss said.
In Canada — the company’s home market — sales were up 41%, led by a 170% growth in apparel sales, he said.
“I am delighted to see one of our most mature markets generating such strong results,” said Mr. Reiss. We have seen growth in our cohort of repeat customers. We ended fiscal 2023 with repeat customers representing almost a third of our base. »
Part of this growth comes from an expansion of the retailer’s product line beyond down parkas.
Canada Goose said it diversified its product sales mix in the quarter, with non-down heavy products accounting for 47.1% of sales, compared to 45.4% last year.
In its outlook for fiscal 2024, Canada Goose said it expects total revenue of between $1.4 billion and $1.5 billion, and adjusted earnings of between $1.20 per share and $1. $48 per share. Its first quarter revenue is expected to be between 70 million and 80 million, while the adjusted loss is expected to be between 82 cents per share and 89 cents per share.
Mr. Reiss highlighted the company’s three “growth pillars” for the coming year, which include accelerating consumer-driven growth, building the company’s direct sales channel and creating new and expanded product categories.
The company plans to open 16 permanent stores in the coming year, including in the United States, China, Japan and Australia, he said.
On an adjusted basis, Canada Goose reported earnings per share of 14 cents, compared to adjusted earnings of 4 cents last year.
Analysts on average had expected adjusted earnings of 11 cents per share and revenue of 259.1 million, according to forecasts compiled by financial data firm Refinitiv.