Canada Goose Holdings Inc has reported better-than-expected quarterly revenue and profit, driven by a surge in online sales and increased demand for its luxury parkas in China. The company’s shares on the U.S. market have soared by almost 21% as a result. To take advantage of the Chinese market, Canada Goose is opening new stores in the country and has collaborated with Chinese designer Angel Chen for a new collection.

CEO Dani Reiss expressed satisfaction with the company’s performance in all major markets, including China. He highlighted the acceleration of growth in China, particularly in the fourth quarter, thanks to strong e-commerce activity and a successful partnership with Tmall, a popular platform in the country. Canada Goose has strategically invested in expanding its presence in overseas markets, with a focus on Europe, and has also prioritized its digital business to mitigate the impact of store closures and travel restrictions caused by the pandemic.

Despite the challenges posed by the pandemic, Canada Goose’s European business performed exceptionally well, with revenue growing by nearly 30%. The company also witnessed a significant 39.3% increase in global e-commerce revenue in the quarter ending December 27, marking its first revenue growth since the pandemic began.

Although net income decreased to C$107.0 million, or 96 Canadian cents per share, from C$118 million, or C$1.07 per share, in the previous year, Canada Goose surpassed expectations with a profit of C$1.01 per share (excluding items), exceeding the estimated 86 Canadian cents per share. Additionally, the company’s revenue rose by 4.8% to C$474.0 million ($369.97 million), surpassing the average analyst estimate of C$415.27 million.

Canada Goose’s success in China and its overall revenue growth demonstrate its ability to adapt to changing market conditions and customer behaviors. By leveraging e-commerce and expanding globally, the luxury apparel brand has successfully navigated the challenges brought on by the pandemic. With affluent consumers in China prioritizing domestic spending due to travel restrictions, Canada Goose has positioned itself to meet the increased demand for its high-quality parkas. Its strong performance in key markets and strategic focus on digital expansion puts Canada Goose in a favorable position for continued success in the luxury outerwear sector.

(Useful links:
1. Canada Goose’s official website: https://www.canadagoose.com
2. Tmall’s official website: https://www.tmall.com)