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Thursday, September 29, 2022

Stock sinks 14% despite sales more than doubling

Canada Goose (GOOS.TO)(GOOS) saw total sales increase 116 per cent to $56.3 million in the first quarter of the year, as the retail environment around the world improved and production normalized through the COVID-19 pandemic.

The Toronto-based luxury parka maker reported a net loss in the three-month period ending June 27 of $56.7 million, or 51 cents per diluted share, compared to a net loss of $50.1 million, or 46 cents per diluted share, in 2020. The first quarter of the year is typically the company’s smallest when it comes to profitability.

Overall sales were boosted by continued growth in e-commerce, which increased globally by 80.8 per cent. Despite some store closures in Canada, revenue grew by 126.1 per cent in the country versus the quarter before.

“The results we delivered in Q1 demonstrate the global demand for our products and our ability to operate in an improving yet still evolving retail environment,” chief executive Dani Reiss said on a conference call with analysts on Wednesday morning.

“Our business has shifted from recovery to growth, and that has continued into this quarter.”

Despite seeing positive growth, the company reiterated its fiscal outlook for the year, one that an analyst previously described as “lacklustre.” The company forecast that it expects revenue in 2021 to exceed $1 billion, with direct-to-consumer sales making up 70 per cent of that figure.

Canada Goose’s stock was down nearly 14 per cent at 10 a.m. ET on Wednesday.

More to come.

Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.

Download the Yahoo Finance app, available for Apple and Android.

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