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Canada Goose Shares Fly Higher on Surprise Q2 Profit

For the latest quarter, Canada Goose posted profit of C$9.3 million, or 8 cents a share, beating analysts' expectations.
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Canada Goose  (GOOS) - Get Canada Goose Holdings, Inc. Report shares soared Friday after the upscale-apparel producer reported an unexpected profit for the latest quarter and lifted full-year earnings guidance.

The stock recently traded at $48.36, up 20%. That left it 32% higher for the past month.

“Across all channels, we are seeing strong leading indicators of peak season demand,” Canada Goose Chief Executive Dani Reiss said in a statement.

“With accelerating [direct-to-consumer] trends, growing lifestyle relevance and unique supply chain flexibility, we believe we have the right foundation in place for an outstanding fiscal 2022.”

For the fiscal 2022 second quarter ended Sept. 26, the Toronto company posted net income of C$9.3 million (US$7.5 million), or 8 cents a share, down from C$12.5 million, or 9 cents a share, in the year-earlier quarter.

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Adjusted earnings hit 12 cents, beating the FactSet analyst consensus for a 10-cent loss.

Revenue registered C$232.9 million (US$186.8 million), up 25% from $194.8 million in the year-earlier quarter. The latest figure topped analysts’ estimate of C$206.1 million.

As for full-year fiscal 2022 guidance, Canada Goose forecast adjusted EPS of C$1.17 to C$1.33, beating the analyst consensus of $1.15.

It expects revenue of C$1.13 billion to C$1.18 billion, up from the prior projection of C$1 billion. The latest estimate beats analysts’ prediction of C$1.1 billion.

In August, Canada Goose said its board approved a buyback of nearly 6 million, or 10%, of its subordinate voting shares outstanding. The company said it would buy back and cancel the shares over a year beginning Aug. 20.