Categories Consumer, Earnings

Canada Goose’s stock plummets on mixed Q4 results

Canada Goose Holdings Inc. (NYSE: GOOS) topped earnings estimates for the fourth quarter of 2019 while revenues came in shy of forecasts, sending the stock crashing over 13% during premarket hours on Wednesday.

Total revenue grew 25.2% year-over-year to CAD156.2 million, but missed the consensus estimate of CAD158 million. On a constant currency basis, revenues grew 23.2%.  

On a reported basis, net income was CAD9 million, or CAD0.08 per share, compared to CAD8.1 million, or CAD0.07 per share, in the prior-year quarter. Adjusted net income was CAD10 million or CAD0.09 per share, ahead of the forecast for EPS of CAD0.05.  

During the quarter, wholesale revenues grew 12.7% to CAD33.8 million from the prior-year period, helped by higher order values. DTC revenues increased 29.1% to CAD122.4 million, aided by strength in established ecommerce markets and retail stores. On a constant currency basis, wholesale revenues rose 9.7% and DTC revenues grew 27.5%.  

For fiscal 2020, Canada Goose expects annual revenue growth of at least 20% along with annual growth in adjusted EPS of at least 25%. Wholesale revenue growth is expected in the high single digits on a percentage basis. The company also expects to have eight new retail stores in operation by the end of the winter selling season.

Over the next three fiscal years, Canada Goose expects average annual revenue growth of at least 20% and average annual growth in adjusted EPS of at least 25%.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top