Jun 2, 2017
Canada Goose posts smaller-than-expected loss; U.S. shares surge
Jun 2, 2017
Canadian apparel maker Canada Goose reported a smaller-than-expected quarterly loss in its first earnings report as a publicly listed company, buoyed by higher sales that helped offset a jump in expenses.
The company's U.S.-listed shares surged 12.3 percent at $21.01 in premarket trading on Friday.
Canada Goose, known for its expensive jackets that have been made popular by celebrities such as Canadian rapper Drake, said quarterly revenue jumped 22 percent to C$51.10 million ($37.78 million). Direct-to-consumer sales surged more than 174 percent to C$36.5 million in the quarter.
However, net loss widened to C$23.4 million, or 23 Canadian cents per share, in the three months ended March 31 from C$9.2 million, or 9 Canadian cents per share, a year earlier.
Selling, general and administrative costs doubled to C$54.7 million in the latest quarter, including C$15.2 million in costs related to its initial public offering, the company said.
For the 2017 fiscal year, the company registered an increase of 38.8% on total revenue to $403.8 million. Net income was $21.6 million. Adjusted EBITDA increased by $26.7 million dollars, a rise of 49.2%, reaching $26.7 million for the year.
The company reported adjusted net income up 46.6% to $44.1 million.
The company said it expected full-year 2018 revenue to rise in "mid-to-high teens" on a percentage basis.
Considering a 15-19 percent range, revenue is likely to rise between $464.4 million and $480.5 million, according to Reuters calculation. Analysts have expected a rise of $466.6 million.
Up to Thursday's close, Canada Goose's shares have risen 48.2 percent from its IPO price of C$17.
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