Shares of Canada Goose Holdings (GOOS) soared in intraday trading Thursday after the maker of fashion winter outerwear posted better-than-expected results as demand rebounded in North America and grew strongly in China.
The company reported fiscal 2024 fourth-quarter adjusted earnings per share (EPS) of 19 Canadian cents ($0.14), with revenue rising 22.1% to C$358.0 million. Both were better than forecasts.
Sales in North America jumped 24.5% to C$152.8 million after declining 13.6% in the previous quarter. Greater China sales climbed 29.7% to C$128.4 million.
Gross profit climbed 22% to C$233.0 million, and gross margin came in at 65.1%, up from 64.9% a year ago.
Chief Executive Officer (CEO) Dani Reiss said the performance was above the company’s guidance even while it was “navigating a difficult environment.”
Canada Goose noted that layoffs during the year generated about C$20 million in productivity improvements and cost savings. The company slashed its corporate workforce by 10% in August 2023, with an additional 17% reduction in March.
Canada Goose shares were trading up 16% at $13.24 as of 11:15 a.m. ET Thursday.