Canada Goose Holdings’ ( NYSE: GOOS ) first quarter results indicated the luxury retailer may be insulated from inflation and supply chain pressures than some of its peers.
The Toronto-based outerwear manufacturer notched a lighter loss than anticipated for its fiscal first quarter of 2023, alongside a 34.2% jump in revenue from the prior year that outpaced estimates. The revenue leap was aided significantly by pricing action that helped gross margins expand to 61.1% from 54.5% in the first quarter of fiscal 2022. The affluent consumer base for the retailer appeared undeterred by the increases in sticker prices, according to management.
“Our first quarter fiscal 2023 results reflect strong early leading indicators for the year, and we have seen encouraging trends in store productivity,” said Dani Reiss, Chairman and CEO. “This fall, we look forward to our planned store openings, in some of the most exciting cities and shopping districts around the world, as well as our upcoming collection launches, thoughtfully curated and designed to drive brand heat and capture new consumers globally.”
As such, full-year guidance for fiscal 2023 was reaffirmed. Total revenue is anticipated to range from C$1.3B to C$1.4B alongside adjusted EPS of C$1.60 to C$1.90.
Shares of the popular jacket-maker rose 1.43% in premarket hours on light volume.
To be sure, the retailer has relied to a significant degree on Chinese consumers in recent years. As such, the company noted that “periodic COVID-19 disruptions in the region during our peak season” could cause results to trend toward the lower-end of guidance.
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Canada Goose glides above earnings estimates, reaffirms full-year flight-path