Canada Goose Holdings Inc. reported revenue that above projections because to increased sales from its Asian locations and the launch of new lightweight items ideal for warmer months.
The Toronto-based luxury parka manufacturer reported revenue for the fiscal first quarter that ended on 30th June of C$ 88.1 million (US $ 63.7 million), exceeding the about C$ 86 million average analyst estimate. On a constant currency basis, sales increased by 3.2 per cent over the previous year.
Canada Goose, most known for its cold-weather clothing, usually experiences a loss of revenue during the first quarter, which spans from April to June. In order to boost sales in all climates and seasons, it has been attempting to broaden its selection of lightweight clothing and footwear. During the quarter, Canada Goose debuted new t-shirt alternatives and rain boots.
“Our spring-summer 2024 collection attracted new and existing customers to shop in our stores and online, contributing to revenue growth in our first quarter, which was especially robust in the Asia Pacific region,” Chief Executive Officer Dani Reiss said in a statement.
With more than 40 per cent of its stores located in the Asia Pacific region, the company has also been attempting to increase sales there. Asia has been a declining market for luxury brands worldwide, in part due to China’s slowing economic growth.
In contrast to the rest of the market, Canada Goose saw a 25 per cent increase in revenue in the region during the quarter, despite a 3 per cent decline in sales in North America.
During a conference call with analysts, Chief Financial Officer Neil Bowden stated that the company was still seeing growth in Japan due to a rise in tourism spending caused by the weaker yen, as well as continued momentum in mainland China. Weakness in other areas of the consumer base largely offset this rise.
