Canada Goose (GOOS) Q4 2024 Earnings Report

Actions of Canada goose surged 16% on Thursday after the company reported fiscal fourth-quarter results and said it expected year-over-year sales growth for fiscal 2025.

Here’s how the company did it:

• Earnings per share: 5 Canadian cents, which may not be comparable to estimates of 7 Canadian cents
• Income: 358 million Canadian dollars (263 million US dollars), which may not compare to the 315.5 million Canadian dollars (232 million US dollars) expected by LSEG.

Revenue increased by 22% compared to the same period last year.

Neil Bowden, Canada Goose’s chief financial officer, said in a conference call with analysts that store comparisons were “relatively flat” but that year-over-year sales growth for the period was dominated by sites in Greater China – the region comprising mainland China, Hong Kong, Macau and Taiwan – which saw an increase of 29.7%. The broader Asia-Pacific region, excluding Greater China, grew 29.1% and sales in North America saw a 24.5% increase.

Net income for the fiscal fourth quarter ended March 31 fell to C$7.6 million, or 5 Canadian cents per share, compared with a loss of C$10 million, or 3 Canadian cents per share, in the period of the previous year.

Bowden said growth was supported by domestic shopping on the Chinese mainland, as well as mainland tourists, which were driving “strong growth” in Hong Kong and Macau.

Online and in-store sales for the period, it added, were “bolstered by the company’s Lunar New Year marketing campaign and complemented by a longer peak sales period, given the date Lunar New Year later than last year.

Looking ahead, the CFO said the company expects mid-single-digit percentage revenue growth for the next financial year, which he said will be driven by progress in the direct sales to consumers. It also said it expects same-store sales to increase “somewhere in the low single digits.”

Bowden said Canada Goose’s increased business in China and Asia-Pacific over the past three months was consistent with the idea of ​​mid-single-digit growth for the luxury sector. North America, however, is under “a little more pressure,” he said.

The upbeat performance comes after the company announced in March that it would cut 17% of its workforce. Canada Goose said the layoffs generated about C$20 million (US$14.7 million) in productivity improvements and cost savings for the fiscal fourth quarter.