Canada Goose (GOOS) - Get Report shares on Thursday were flying high as the luxury-coat maker beat Wall Street's fiscal-second-quarter earnings expectations, boosted by online sales and growth in China.
Shares of the Toronto company at last check were up 4.1% to $34.25.
For the quarter ended Sept. 27 Canada Goose reported net income of C$12.5 million, (US$9.6 million) or 9 cents a share, compared with C$58 million ($44.4 million), or 55 cents, in the year-earlier period.
Adjusted earnings were 10 cents a share Canadian, while analysts surveyed by FactSet consensus called for 8 cents.
Revenue of C$194.8 million (US$149.1 million) declined from C$294 million ($225 million) a year earlier but beat the FactSet consensus of C$148.3 million ($113.5 million).
Global e-commerce revenue increased more than 10% and sped up in September. Direct-to-consumer was down, due to lower retail traffic because of the coronavirus pandemic. Direct to consumer in China increased more than 30%, the company said.
Several luxury players, including LVMH (LVMH) , have indicated sales resurged in China as the world's second biggest economy recovers from the covid-19-led blow faster than others, Reuters reported.
"We have accelerated our best strategic opportunities in today’s environment. Mainland China has already returned to growth and our digital business is accelerating in a meaningful way at the right time," Dani Reiss, president and chief executive, said in a statement.
"This is a strong backdrop as we head into peak Canada Goose season."
Canada Goose said it would continue to hold back on guidance for 2021, "given continued global uncertainties, including second wave shutdowns and disruptions, the pace of retail traffic recovery, and the impact of economic developments and travel restrictions, all of which are unknown."