June 2, 2017 / 11:17 AM / 2 years ago

Canada Goose posts smaller-than-expected loss; U.S. shares surge

(Reuters) - Canadian apparel maker Canada Goose (GOOS.TO) 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.

Workers piece together outerwear on the manufacturing floor of Canada Goose's facility in Toronto January 17, 2012. REUTERS/Fred Thornhill

The company’s U.S.-listed shares (GOOS.N) 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.

On an adjusted basis, the company reported a loss of 15 Canadian cents per share.

Analysts had expected a loss of 19 Canadian cents per share and revenue of C$31.25 million, according to Thomson Reuters I/B/E/S.

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.

Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva

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