Luxury outerwear company Canada Goose Holdings said its revenues surged by more than 40%, reporting growth in every geographic market.
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The Toronto-based company said total revenue increased by 40.5% to $830.5m from $591.2m, or 39.0% on a constant currency basis. For the twelve months ending March 31, wholesale revenue increased to $399.2m from $336.2m, driven by higher order values from existing partners. Meanwhile, direct-to-consumer sales rose 51.9% to $431.3m from $255m, primarily driven by incremental revenue from five new retail stores and one new e-commerce market.
Full-year net income was $143.6m, or $1.28 per diluted share, compared to $96.1m, or $0.86 per diluted share. The increase was due to higher operating income and a lower effective tax rate, said the seller of $1000 parka coats.
However, the last quarter of 2019 put a dampener on the Canadian apparel maker’s results. For the fourth quarter ending March 31, Canada Goose reported a 25 per cent rise in sales to $156.2m, slightly below analysts’ expectations of $156.8m. The result also marked the weakest pace of quarterly sales growth for the company in two years, said analysts.
The company also said it expects sales growth to moderate to about 20 per cent a year over the next three years. Still looking ahead, Canada Goose said that it would post “materially larger losses” for the current fiscal quarter, on the back of increased investment in China and new store openings.
“I am extremely proud of Canada Goose’s many strategic accomplishments in fiscal 2019. We entered the year with a very ambitious agenda of global growth, and we have surpassed it with flying colours,” said Dani Reiss, President & CEO. “We have come a long way in a short time and we have done it the right way – by preserving the purity of our brand and building for the future. Our business and our people have never been stronger. I believe that we are still just scratching the surface of our long-term potential as we continue to define performance luxury globally.”
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Canada Goose shares were down 30% to $33.89 at the end of the trade day of 29 May 2019.