Refile: UPDATE 2-Canada Goose posts surprise profit on China demand recovery, cost controls

Canada Goose Holdings

07/11/2024 14:58

(Corrects to remove extraneous text, a previous version was
corrected to fix regional revenue numbers)
       Nov 7 (Reuters) - Canada Goose Holdings  GOOS.TO 
 GOOS.N  posted a surprise quarterly profit and topped Wall
Street estimates for revenue on Thursday, as the luxury parka
maker benefits from a demand recovery in China, as well as its
tight cost controls.
    Its U.S.-listed shares rose 5% in premarket trading, as its
robust performance in China contrasts with comments from bigger
luxury brands such as Gucci-owner Kering  PRTP.PA  and LVMH
 LVMH.PA .
    Revenue rose 5.7% in Greater China in the second quarter,
Canada Goose said.
    Canada Goose, whose parkas can retail for more than $1,000, 
has also diversified by entering the non-winter category to
include rain and warm weather clothing.
    Excluding one-off items, Canada Goose posted a profit of 5
Canadian cents per share, compared with estimates for a loss of
5 Canadian cents.
    Selling, general and administrative expenses fell about 8%
to C$162.5 million due to a cost-saving program that involved
job cuts.
    "Our second-quarter performance reflected steady progress
across our operating priorities, as we navigated an increasingly
challenging macro environment that affected consumer sentiment,"
CEO Dani Reiss said.
    Still, the Ontario-based company tempered its fiscal 2025
revenue expectations due to weak spending on luxury goods in the
U.S.
    It now expects fiscal 2025 revenue to range from a
low-single-digit decline to a low-single-digit increase,
compared to its previous forecast of low-single-digit growth.
        Revenue in North America declined 2.4% in the reported
quarter, compared to a 2.9% fall in the previous quarter. 
    Canada Goose said second-quarter revenue fell to C$267.8
million ($193 million) from C$281.1 million, a year earlier. 
    Analysts on average had expected revenue of C$260.2 million,
according to data compiled by LSEG.
   

($1 = 1.3888 Canadian dollars)

 (Reporting by Aatrayee Chatterjee in Bengaluru; Editing by
Sriraj Kalluvila)
 ((Aatrayee.Chatterjee@thomsonreuters.com))