By Deborah Mary Sophia and Aditi Sebastian
-Canada Goose Holdings Inc said on Friday it is eyeing a strong holiday season this year, as the winterwear maker benefits from surging demand for its luxury parkas in China and remains insulated from a global supply chain crunch across the sector.
The company forecast annual earnings above estimates after topping Wall Street expectations for second-quarter revenue, sending its U.S.-listed shares up over 15% in early trade.
Luxury goods makers have seen a strong recovery from the global health crisis, boosted by pent-up demand for everything from high-end clothing to designer bags, but are facing a holiday season riddled with higher costs due to a tight supply chain.
Unlike some luxury peers, Canada Goose produces its core items in Canada which has cushioned the impact of surging transportation expenses being felt by brands like Ralph Lauren Corp, which earlier this week flagged higher shipping costs over the next few months.
“We don’t expect any material revenue headwinds relating to our supply chain or any shipping constraint for this winter,” Chief Executive Dani Reiss told Reuters, adding the company had all the inventory needed to make it through the rest of the season.
The Toronto, Ontario-based company, which typically makes around half of its annual sales during the holiday quarter, said it expects an adjusted profit of C$1.17 to C$1.33 per share in fiscal 2022, above analysts’ estimate of C$1.13, according to Refinitiv IBES.
Known for its bright red parkas, Canada Goose also benefited from Chinese consumers who continued to purchase its jackets despite fresh lockdowns in some cities, helping the company beat revenue expectations for the tenth consecutive quarter.
Canada Goose, set to launch its footwear collection this month, reported revenue of C$232.9 million ($186.69 million) in the second quarter ended Sept. 26, topping analysts’ estimates of C$206.1 million.
($1 = 1.2475 Canadian dollars)
(Reporting by Deborah Sophia and Aditi Sebastian in Bengaluru; Editing by Krishna Chandra Eluri)
