Canada Goose posts better-than-expected fourth-quarter results thanks to recovery in demand in China and the United States – 05/16/2024 at 1:45 p.m.

Canada Goose posts better-than-expected fourth-quarter results thanks to recovery in demand in China and the United States – 05/16/2024 at 1:45 p.m.
Canada Goose posts better-than-expected fourth-quarter results thanks to recovery in demand in China and the United States – 05/16/2024 at 1:45 p.m.

((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))

(Adds details on results in paragraphs 6.8, updates actions in paragraph 2)

Canada Goose GOOS.TO, GOOS.N beat market expectations for quarterly revenue and profit on Thursday, thanks to a strong recovery in demand for its pricey fleece jackets in China and the United States after months of slowdown .

Shares of the U.S.-listed company, which announced in March it would cut 17% of its global workforce, rose 15% premarket.

Luxury brands are seeing strong demand for high-end products in Asia-Pacific, defying a broader slowdown in key market China that is grappling with a housing crisis and youth unemployment.

The parka maker’s revenue in Asia-Pacific jumped 29.6% in the fourth quarter, compared with an increase of around 62% in the previous quarter.

After months of sluggish sales for its luxury jackets, Canada Goose also saw a recovery in demand in North America, with revenue up 24.5% in the region after a 14% decline in the previous quarter.

Canada Goose’s wholesale revenue fell just 9%, compared with a 28% drop in the previous quarter.

The Ontario company’s revenues reached C$358 million (C$262.71 million) in the fourth quarter of its fiscal year, compared to analysts’ expectations of C$315.5 million, according to data from LSEG.

It made a profit of 19 Canadian cents per share, while analysts expected 7 Canadian cents.

($1 = 1.3627 Canadian dollars)

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