What do Canadians think of Canada Goose

Canada Goose is growing faster than expected in the second quarter

The Canadian clothing company Canada Goose Holdings Inc. increased its sales and profits significantly in the second quarter of 2019/20. With the current figures, which were published on Wednesday, the down jacket specialist was able to significantly exceed the expectations of the analysts. As a result, the company's share price jumped by more than seven percent.

In the last quarter, which ended on September 28, Canada Goose had consolidated sales of 294.0 million Canadian dollars (201.4 million euros). Compared to the same period in the previous year, this meant an increase of 27.7 percent. Adjusted for changes in exchange rates, sales grew by 28.3 percent. Market observers had only expected sales of just under 267 million Canadian dollars in advance.

According to the company, an increase of 39.7 percent (+38.5 percent adjusted for currency effects) to 87.9 million Canadian dollars in the USA and strong businesses in Asia, where sales rose 83.8 percent ( currency-adjusted +83.5 percent) to 48.9 million Canadian dollars. In Canada, sales grew by 21.0 percent to 91.2 million Canadian dollars, in Europe and the rest of the world it shrank by 6.5 percent (currency-adjusted -3.4 percent) to 66.0 million Canadian dollars.

The net profit increased by around 21 percent

A lower gross margin as well as higher investments and special charges meant that the profit development could not quite keep pace with the sales growth. The operating result rose by 16.0 percent to 75.4 million Canadian dollars. The quarterly surplus increased by 21.4 percent to 60.6 million Canadian dollars (41.5 million euros). Adjusted for one-time effects, it rose according to the company by 24.5 percent to 63.6 million Canadian dollars and was thus well above the analysts' forecasts.

In the first half of the year, sales reached 365.1 million Canadian dollars, exceeding the corresponding prior-year level by 32.8 percent (currency-adjusted +33.2 percent). Net income was unchanged at 31.2 million Canadian dollars.

The available figures gave the company no reason to touch the annual forecasts published at the end of May. It continues to expect an increase in sales of at least twenty percent compared to the previous year. The diluted earnings per share adjusted for special effects should even be increased by at least a quarter.

Photo: Canada Goose