Canada Goose Holdings Inc. (TSX:GOOS) reported fourth-quarter results that beat expectations and issued a bullish long-term growth forecast
SmallCapPower | June 19, 2018: Canada Goose Holdings Inc. (TSX:GOOS) shares surged 30% on Friday after the maker of down jackets and other cold-weather gear reported fourth-quarter results that beat expectations and issued a bullish long-term growth forecast. The Company reported that its FY2018 revenue rose 46% to $591.2 million, while its net income increased to $96.1 million from $21.6 million during fiscal 2017.
Canada Goose Holdings revenue jumped 144% in the fourth quarter to $124.9 million, beating estimates, as direct-to-consumer revenue surged, which was driven by the four new stores and eight national e-commerce sites opened over the last year. Gross margin expanded from 54.4% to 62.7% as the Company moves away from wholesale model to a retail one. On the bottom line, Canada Goose Holdings posted a surprise adjusted profit of $0.09 per share, up from a loss of $0.15 a year ago, beating the estimates of a loss of $0.07 per share.
Canada Goose Holdings President and CEO Dani Reiss said, “Our execution in fiscal 2018 was exceptional across all growth strategies and key metrics. These results reinforce my belief that we are still just scratching the surface of our global potential. As we continue to bring more Canada Goose to more of the world, we are resolutely focused on the long term and what we need to get there. Fiscal 2019 will be another exciting year, as we make significant strategic investments in infrastructure and people to support our foundation for enduring growth.”
Canada Goose Holdings gave bullish long-term growth forecast guidance. The Company expects annual revenue growth of 20% over the next three years and annual EPS growth of 25%. Also, it plans to open five new retail stores before winter and is preparing to enter the Chinese market.
Canada Goose Holdings stock has more than doubled in the last 12 months, as the Company has executed effectively. Shares of Canada Goose Holdings continued to move higher Monday, gaining 10% to $85.68.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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