(Reuters) - Luxury apparel maker Canada Goose Holdings Inc (GOOS.TO) topped profit estimates on Wednesday as revenue from the company’s developing network of online and branded stores more than doubled, helping it raise its forecast for the full year.
Shares of the company jumped as much as 23 percent to hit a record high of C$95.58 on the Toronto Stock Exchange after reporting a C$30 million jump in direct-to-consumer sales.
Canada Goose’s high-end tag has helped it grow despite stagnating sales in the broader industry. Earlier this year, the company, well-known for its $900 parkas, opened its first store in Greater China to tap into the world’s biggest luxury market.
"I don't know anything about any specific effect from any of the geopolitical noises," CEO Dani Reiss told Reuters in an interview, referring to a broader slowdown in China's economic growth. here
The company, which began opening its own stores in 2016 after selling through wholesalers since 1957, expects to have about 20 brick-and-mortar stores around the world by 2020.
“We are not looking to open hundreds and hundreds of stores. These days many brands are closing stores and we never want to be a brand that opened too many stores,” Reiss said.
The maker of high-end outerwears now expects revenue to grow at least 30 percent in fiscal 2019, up from an earlier forecast of 20 percent growth. Analysts at RBC Capital Markets said the outlook was conservative.
Canada Goose has been moving away from the wholesale-dominated model to focus on high-margin company-owned stores. Sales in the wholesale segment grew strongly in the quarter, to C$180 million in the fiscal second quarter from C$152 million a year earlier.
The Toronto-based company’s overall revenue rose nearly 34 percent to C$230.3 million.
Net income rose to C$49.9 million ($37.7 million) or 45 Canadian cents per share, in the second quarter ended Sept. 30.
Excluding one-time items, the company earned 46 Canadian cents per share, beating analysts’ average estimate of 26 Canadian cents, according to IBES data from Refinitiv.
($1 = 1.3231 Canadian dollars)
Reporting by Arundhati Sarkar in Bengaluru; Editing by Shailesh Kuber and Arun Koyyur