Canada Goose beat market expectations with online sales and reopening economies across the globe, driving revenue growth.
The company saw its quarterly revenue rise to nearly $187 million, up from $156.4 million a year before. For the quarter ending September 26, analysts had expected the company’s revenue to reach $165.5 million, according to Refinitiv IBES. However, the parka maker’s net income fell to $7.2 million from $8.3 million a year before.
The revenue growth was led by an increase in demand in China, with consumers shopping for the brand’s luxury parkas even as travel restrictions remain in place and new lockdowns are being implemented to counter the rise of the Delta variant.
In August this year, Canada Goose saw its shares tank after the company announced plans to move away from selling through third-party sellers in favor of selling directly through its stores and website, a strategy that the company said was key to boosting profitability and long-term revenue growth. Wall Street, however, was less than enthused by this shift and analysts expecting a not-so-stellar performance in the next quarter.
This year, the luxury parka maker is expecting close to 70 percent of its sales to come from the direct-to-consumer (DTC) channel, up from 52 percent in 2019.
The company is expecting strong holiday sales this year thanks to an increase in demand in the winter season, especially in China, and the company’s ability to keep its business insulated from global supply chain woes.