Canada Goose Reports Strong Q3 Revenue and Earnings

Shares of Canada Goose Holdings (TSE: GOOS) saw a significant increase this morning after the company announced higher revenue and adjusted earnings for the third quarter. Despite declines in other markets, strong performance in the Asia Pacific region offset the losses.

Total revenue for the winter apparel brand rose to C$609.9 million in the three months ending January 1, up from C$576.7 million in the same period last year. While the growth fell slightly short of analyst expectations, the Asia Pacific market showed substantial gains with a 62% year-over-year increase in revenue. The company attributed declines in the EMEA and North America markets (26% and 14% respectively) to lower ecommerce and wholesale revenue.

Canada Goose is actively expanding its direct-to-consumer network and recently opened permanent stores in New Jersey and Kobe, Japan. This brings their total store count to 65. Direct-to-consumer revenue grew 14% to C$514 million. However, wholesale revenue experienced a 28% decrease due to lower orders from existing customers.

Earnings per share for the quarter rose from C$1.28 to C$1.29 compared to the previous year. Adjusted earnings per share met consensus expectations at C$1.37.

For the fourth quarter, Canada Goose expects revenue to be between C$310 million and C$330 million, exceeding analyst predictions of C$298.8 million.