Canada Goose Holdings Inc. reported lower sales in Asia in its latest quarter amid new COVID-19 restrictions and widespread store closures in China. The luxury outerwear company said sales in the Asia-Pacific region were $70.
Canada Goose Holdings Inc. reported lower sales in Asia in its latest quarter amid new COVID-19 restrictions and widespread store closures in China.
The luxury outdoor apparel company said sales in the Asia-Pacific region were $70.6 million for the quarter ended April 3, up from $77.7 million a year earlier.
Sales in Canada, the United States and Europe all increased, bringing total revenue for what was the fourth quarter of its fiscal 2022 to $223.1 million, from $208.8 million in the same quarter l last year.
“From a geographic perspective, our retail performance in North America has been the primary driver of growth,” Dani Reiss, president and CEO of Canada Goose, said on a conference call Thursday. .
“Consumer confidence remains strong and shoppers have returned to pre-pandemic trends.”
His comments come as the company reported a net loss of $9.1 million in its latest quarter, compared with a profit of $2.5 million a year earlier. The loss was nine cents per diluted share, compared with earnings of two cents per diluted share a year ago.
Looking ahead, Reiss said Canada Goose is ready with the inventory needed for when demand fully rebounds.
“Many peers pointed to ongoing production and supply chain challenges as well as logistical delays,” he said. “That was not a factor for us in the quarter, nor do we expect it to affect the year ahead.
“We continue to be uniquely insulated against supply chain issues due to our Canadian manufacturing, which represented 84% of our total units in calendar 2021.”
Still, Canada Goose had to deal with higher transportation costs.
“We continue to anticipate and monitor escalating costs based on both freight constraints and the speed required to organize inventory or deliver to consumers,” the company said in its management report.
On an adjusted basis, Canada Goose said it earned four cents per diluted share for its latest quarter, compared to adjusted earnings of one cent per diluted share a year ago.
Canada Goose was expected to post an adjusted loss of one cent per share on $222.7 million in revenue, according to financial data firm Refinitiv.
For the full year, its net profit rose 35% to $94.6 million, while revenue rose 21.5% to nearly $1.1 billion.
In its outlook for the first quarter of its fiscal 2023, the company said it expects revenue of $60 million to $65 million and an adjusted loss of between 60 and 64 cents per diluted share.
Canada Goose said its outlook for its full fiscal year 2023 calls for total revenue of between $1.3 billion and $1.4 billion, and adjusted earnings of between $1.60 and $1.90 per diluted share.
Still, the company said COVID-19 restrictions could continue to weigh on continued improvement in demand.
Canada Goose said the potential emergence of a new variant could negatively impact operations, including through temporary closures of retail stores and manufacturing facilities and supply chain disruptions.
On the Toronto Stock Exchange, its shares rose $2.37 or 9.7% to $26.91 by noon.
This report from The Canadian Press was first published on May 19, 2022.
Companies in this story: (TSX: GOOS)
Brett Bundale, The Canadian Press