Canada Goose Sees Resurgence in Asia Amid Global Sales Downturn

TORONTO — Amidst a fluctuating global market, Canada Goose Holdings Inc. has reported a significant spike in sales across Asian markets following the easing of China's COVID-19 restrictions. However, this upswing contrasts with marked declines in the company's sales across North America and Europe.

Surge in Asia-Pacific Region

In a remarkable turnaround, the Asia-Pacific region has seen a 62 percent increase in sales, particularly bolstered by buyers in Macao and Hong Kong and invigorated tourism from mainland China. The ending of pandemic-related store closures, coupled with colder weather, has resulted in a doubling of store traffic in greater China, significantly impacting sales for the quarter ending on December 31.

Challenges Closer to Home

Conversely, the luxury outerwear company experienced nearly a 14 percent drop in revenues in its home market of Canada as well as in the United States. The combination of unexpectedly warm weather, which reduced the need for heavy winter clothing, and the financial pressures of high inflation and interest rates have led consumers to tighten their purse strings according to company president Carrie Baker.

Impact on EMEA Sales

Europe, the Middle East, and Africa (EMEA)—regions which contribute the least to the company's overall earnings—also noticed a decline, with revenues plummeting by 26 percent.

Financials at a Glance

The company reported a net income of $130.6 million attributable to shareholders for its third quarter. This figure corresponds to $1.29 per diluted share, a modest change from the $134.9 million or $1.28 per diluted share reported the previous year.

Total revenue for the quarter reached $609.9 million, climbing from $576.7 million year over year. On an adjusted basis, the earnings were $1.37 per diluted share, meeting analyst expectations and showing a slight improvement from the adjusted profit of $1.27 per diluted share from the prior year.

Projections and Expectations

Looking forward, Canada Goose has set its revenue forecast for the fourth quarter to be between $310 million and $330 million with an adjusted profit ranging from two to 13 cents per diluted share. For the full fiscal year of 2024, the company has adjusted its revenue predictions to be between $1.28 billion and $1.31 billion, refining its initial projections.

The expectations for adjusted net income per diluted share have also been revised, with the company now estimating figures between 82 cents and 92 cents, compared with the previous range of 60 cents to $1.40.

CanadaGoose, Asia, Sales