Shares of Canada Goose Holdings spiked 30% on stronger-than-expected revenue driven by a rise in online demand. Shares of the luxury parka maker soared to $45.60 on Thursday, the highest level since 2018.
The company on Thursday reported its third-quarter earnings that beat Wall Street estimates. Sales of Canada Goose ending December 27 rose 5% to $474 million compared to the $452 million in the year-ago period.
The Toronto-based company attributed the increase in sales to the online shopping boom brought about by the pandemic as well as continued strong demand from Chinese customers.
Global e-commerce revenue increased by 39.3% while direct-to-consumer revenue in mainland China increased by 41.7%. Total revenue increased for the first time since the pandemic began last year.
“This marks a return to growth for Canada Goose and our biggest quarter, and we did it with strong profitability and cash flow,” said company chief executive Dani Reiss said on a conference call with analysts on Thursday.
This quarter typically accounts for the bulk of the annual sales of companies that sell winter equipment. Despite closing seven out of the 28 brick-and-mortar stores, the momentum for e-commerce was more than enough to compensate for Canada Goose’s top line.
The maker of the popular down jackets has since been ramping up its expansion overseas, particularly in China. It even collaborated with Chinese designer Angel Chen for a new collection. Chen is the first-ever Chinese designer to collaborate with apparel giant H&M.
“We saw strong double-digit growth across all of our major markets, including China, and this growth is accelerating into the fourth quarter,” Chief Executive Officer Dani Reiss said in an interview with Reuters.
Europe is also a market Canada Goose aims to tap further, according to Reis.
“Our European business has performed very well, our revenue grew almost 30%…despite the impacts of store closures and international travel restrictions,” Reiss said. “While we remain in an uncertain world, we are very encouraged by our strong momentum as we finish the fiscal year.”
The company did not provide an outlook for fiscal year 2021. Shares of Canada Goose traded at $42.88 as of 3:30PM E.T. on Thursday.