Canada Goose Holdings Inc, the high-end winterwear manufacturer, is poised to achieve record-breaking annual revenue of over C$1 billion. This achievement can be attributed to the company’s robust online sales and a surge in demand from China. As a result of this positive news, Canada Goose’s shares experienced a 5% increase in premarket trading.

The COVID-19 pandemic has expedited the shift to online shopping, leading to a substantial increase in global e-commerce revenue for Canada Goose. Furthermore, the company has seen its direct-to-consumer sales in Mainland China double compared to the previous year. Traditionally, China’s affluent population relied heavily on purchasing luxury items during overseas travel. However, as travel restrictions ease, these consumers are now turning to online platforms and local stores for their luxury purchases.

Recognizing this shifting consumer behavior, Canada Goose is actively investing in the Chinese market. The company plans to open new stores and tailor its products to meet the preferences of Chinese consumers. Despite the challenges posed by the health crisis, Canada Goose achieved a remarkable 48% increase in overall revenue, reaching C$208.8 million ($172.16 million) in the fourth quarter. This performance surpassed analysts’ expectations.

In a surprising turn of events, Canada Goose also reported a profit of 1 Canadian cent per share, defying analysts’ predictions of an 11 Canadian cent loss. This positive outcome can be attributed to the company’s strategic focus on its direct-to-consumer business, which accounts for nearly 70% of its total revenue and boasts higher profit margins. Looking ahead, Canada Goose anticipates that its total revenue will exceed C$1 billion in fiscal year 2022, with analysts predicting an additional 30.2% increase to C$1.12 billion.

By capitalizing on the growing demand for luxury winterwear and the surging popularity of online shopping, Canada Goose has positioned itself for robust growth in the upcoming years. The company’s expansion plans in China underscore its commitment to tapping into key markets and satisfying the needs of affluent consumers. With a strong emphasis on its direct-to-consumer business, Canada Goose aims to continue boosting its profit margins and reaffirm its position as a prominent player in the luxury apparel industry.

Useful Links:
Canada Goose Official Website
CNBC: Canada Goose beats earnings estimates on surging online sales