Costco Stock – Canada Goose Up 30% On Unexpected Income From Online Demand | Fintech zoom

• Canada Goose Holdings climbed 30% as revenue was higher than expected, driven by increased online demand.
• The luxury parka maker’s shares rose to $ 45.60 on Thursday, their highest level since 2018.
• Canada Goose attributed the increase in sales to the online shopping boom triggered by the pandemic and strong demand from Chinese customers.
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Canada Goose Holdings’ stocks rose 30% as revenues came in higher than expected, driven by increased online demand. The luxury parka maker’s shares rose to $ 45.60 on Thursday, their highest level since 2018.

The company announced its third quarter results on Thursday, beating Wall Street estimates. Canada Goose sales increased 5% to $ 474 million through December 27, compared to $ 452 million for the same period last year.

The Toronto-based company attributed the increase in sales to the online shopping boom triggered by the pandemic and continued strong demand from Chinese customers.

Global e-commerce sales increased 39.3% while direct sales in mainland China increased 41.7%. Total sales rose for the first time since the pandemic began last year.

“This is a return to growth for Canada Goose and our biggest quarter, and we did it with strong profitability and cash flow,” said Dani Reiss, CEO of the company, on a conference call with analysts on Thursday.

This quarter typically makes up the bulk of the annual revenue of companies that sell winter gear. Despite the closure of seven of the 28 brick and mortar stores, the momentum for e-commerce was more than enough to offset Canada Goose’s sales.

Since then, the manufacturer of the popular down jackets has been expanding overseas, especially in China. It even worked with Chinese designer Angel Chen on a new collection. Chen is the first Chinese designer to work with clothing giant H&M.

“We have seen strong double-digit growth in all of our major markets, including China, and that growth accelerates in the fourth quarter,” said Chief Executive Officer Dani Reiss in an interview with Reuters.

Europe is also a market that Canada Goose intends to further develop, according to Reis.

“Our European business has developed very well, our sales have increased by almost 30% … despite the effects of shop closings and international travel restrictions,” said Reiss. “Although we remain in an uncertain world, we are very encouraged by our strong momentum at the end of the fiscal year.”

The company did not provide an outlook for fiscal year 2021. Canada Goose’s stock traded at $ 42.88 on Thursday at 3:30 p.m. ET.