Canada Goose Higher as Retailer Posts Quarterly Profit

Canada Goose manages to stay in the black during the first three months of 2020 in the teeth of the coronavirus lockdown.
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Shares of Canada Goose  (GOOS) - Get Report rose Wednesday after the high-end coat company beat analysts' estimates on both earnings and revenue amid the coronavirus crisis.

Canada Goose's stock price jumped 7.61% to $23.19 in premarket trading after the coat company, which touts its stylish "extreme weather outwear," surprised analysts by eking out a profit of 2 cents a share during the first three tumultuous months of 2020.

While that was down considerably from the 8 cents a share the retailer earned last spring, it handily beat the forecast of analysts surveyed by Zacks Investment Research, who had estimated a quarterly loss of 9 cents a share.

Canada Goose also posted a big surprise on revenue. The brand name coat company, which reports all of its results in Canadian dollars, generated sales for the quarter ended March 29 of $140.9 million.

Down from $156.2 million during the same period last year, Canada Goose's revenue for the quarter, at $140.9 million, was well above the $126.5 million predicted by analysts polled by FactSet.

The Toronto-based company managed to stay in the black for its fiscal 2020 fourth quarter, which ended in March, despite mounting challenges posed by the lockdown on global commerce spurred by the coronavirus.

Three quarters of its stores across the globe, or 15 out of 20, were temporarily closed during the first seven weeks of the quarter. Of the five that remained open, two were in Hong Kong, where sales were severely limited by restrictions on inbound tourism, Canada Goose said in a news release on its quarterly numbers.