Canada Goose is still on a tear and Wall Street is excited.
Shares of the Canadian down coat brand rose 10.3 percent during the first hour of trading, reaching a new all-time high of $23.92, after it posted a 34.7 percent increase in sales to 172.3 million Canadian dollars for the second fiscal quarter ended Sept. 30. Adjusted net income came in at 37.1 million Canadian dollars, compared to 20 million Canadian dollars a year ago.
Adjusted earnings before interest, tax, depreciation and amortization rose 37.3 percent as well, rising to 46.4 million Canadian dollars, from 33.8 million Canadian dollars last year.
Wholesale sales still make up the bulk of Canada Goose’s revenue, growing to 152.1 million Canadian Dollars for the second quarter from 122.4 million Canadian dollars, but its direct-to-consumer sales quadrupled, rising to 20.3 million Canadian dollars from 5.5 million Canadian dollars.
The company cited “increased efficiency in manufacturing and sales planning” and a related acceleration of shipments at the request of retailers as part of its increased wholesale business.
As for its direct business, Canada Goose said there was “strong growth” in e-commerce in North America, along with an “incremental” boost from new retails stores and online operations that were not around this time last year, including stores in Chicago and Tokyo.
“Our performance reflects the power of our brand around the world and our disciplined approach to executing our growth strategies,” Dani Reiss, president and chief executive officer, said. “We have opened e-commerce sites in all seven of the new markets planned for fiscal 2018 and we remain on track to have seven world-class retail destinations in operation in the third quarter of fiscal 2018.”
Reiss added that he’s been “encouraged by the response” to Canada Goose’s first knitwear collection, launched this fall, without specifying sales.
“With strong results across channels, geographies and categories, we continue to drive awareness and penetration while inspiring those who already know and love our brand,” Reiss said. “Most importantly, we remain deeply committed to building an enduring brand for the long-term.”
Looking to the immediate future, the company increased its full-year guidance, given the “stronger than expected growth” across the business. Canada Goose is now expecting a full-year growth rate of 25 percent after projecting growth up to the high teens earlier this year, along with a 35 percent growth in earnings per diluted share.
During its first fiscal quarter, the company saw sales grow 44 percent to 28.2 million Canadian dollars, but it posted a net loss of 12.1 million Canadian dollars after seeing a net loss of 14 million Canadian dollars in the year-ago period.
At that time, Reiss declined to update the company’s guidance, saying it only intended to offer up annual guidance.
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