Canada Goose shares set a new record as traders reacted to the company’s unexpected profit and what is an optimistic outlook from the maker of luxury parkas that cost around $1,000.
|GOOS||CANADA GOOSE HLDGS||37.48||+0.55||+1.49%|
In the three months ended March 31, the cold weather gear maker earned CDN $8 million compared to a loss of CDN$23.4 million in the fourth quarter of 2017.
Adjusted earnings rose to 9 cents a share, after a 15-cent loss per share a year earlier. Analysts polled by Thomson Reuters were expecting a loss of 7 cents per share.
Canada Goose reported revenue of CDN$124.8 million, up from CDN$51.1 million a year ago. Analysts polled by Thomson Reuters expected revenue of $53.1 million, or CDN$69.9 million assuming Friday’s US-CDN dollar exchange rate.
The market for luxury winter coats is apparently heating up, with the company expecting annual revenue growth of at least 20% for the next three years. When it comes to earnings, the company is expecting 25% growth through fiscal 2021 (in net income per diluted share).
The company is also expanding, and plans to open 3 new stores in Canada.