World News – CA – Canada Goose Shares Rise As Resurgent Chinese Demand Boosts Profits

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A higher savings rate among high-income consumers, combined with reduced travel expenses and unusually cold weather in North America, helped sales

Canada Goose Holdings Inc posted a surprise quarterly profit and beat revenue estimates on Thursday, as rising online sales and strong demand for its US $ 1,000 parkas in China helped the company cushion the weakness of its wholesale activities

Several luxury goods players, including LVMH, have said sales have picked up in China as the world’s second largest economy recovers faster than others from the blow from COVID-19

Canada Goose said its direct-to-consumer revenue has jumped more than 30% in mainland China, where shoppers are known to splurge on luxury goods

A few Canada Goose analysts attribute the rise in sales of the luxury parka maker to a higher savings rate among high-income consumers, combined with reduced travel expenses and unusually cold weather in America from the North

The company’s overall online revenue grew by more than 10% in the second quarter ended Sept. 27, as its wholesale revenue almost halved due to pressure on its partners , including department stores, due to the pandemic

Revenue fell about 34% to $ 1948 million, but exceeds analysts’ average estimate of $ 167 2 million, according to IBES data from Refinitiv

The company also said its adjusted profit before interest and tax (EBIT) margin was positive for the first time since the start of the pandemic, as it doubled its higher-margin online business

Excluding items, Toronto, Ont. based Canada Goose gained 10 cents a share Analysts expected a loss of 1 cent

US- listed shares of Canada Goose, down 9% this year, have traded lightly in pre-market

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Canada Goose, NYSE: GOOS, stocks

Global news – CA – Canada Goose shares climb as Chinese demand returns to profits



SOURCE: https://www.w24news.com

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