Canada Goose Holdings Inc. says that its new spring and summer clothing lines seem to be resonating consumers, although the company recorded a broader net loss in its last quarter.
Executive director Dani Reiss said clothes such as shirts and poles have been some of the company’s best sellers in recent months, helping the company to change their perception that it is a winter brand.
“The summer spring campaign brought a new energy to the brand, playful and relevant with a clear message: we also make summer,” Reiss told analysts at a telephone conference on Thursday.
The increase in temperatures and softest winters have pushed some retailers, including Canada Goose, to rethink their combination of products. As a result, the company has been expanding its offers to include light dressers, sweaters, wind and rain clothes, shoes and even glasses in recent years.
Despite the optimism of executives on their new product lines, the luxury park manufacturer reported a broader net loss of $ 125.5 million during its first fiscal quarter, compared to a loss of $ 74 million during the same quarter of last year.
The loss was partly driven by a greater expense in marketing campaigns and expanding its retail footprint.
On an adjusted base, it lost $ 1.29 per share diluted in the quarter, compared to an adjusted loss of 80 cents per share last year.
The company based in Toronto manufactures its central and full products in seven facilities in Canada. That includes three in Winnipeg, three in the metropolitan area of Toronto and one in Boisbriand, which.
Sales despite losses
While its final result received a blow, the company says that sales were actually higher. Revenue for quarter totaled $ 107.8 million, compared to $ 88.1 million a year ago.
Direct revenues to consumer totaled $ 78.1 million, 22.8 percent more than a year ago, while wholesale revenues increased 11.9 percent to $ 17.9 million.
The financial director Neil Bowden said that expanding the company’s offers in the last 12-15 months has borne fruit.
“Things are working here,” analysts told. “That is why we have confidence around sustainability despite what remains a fairly chopped and hard consumer market.”
Consumer confidence has been hindered this year amid threats of continuous rates of the United States and an economic deceleration, which leads many buyers to stop their expenses.
Bowden said that 75 percent of the company’s products are carried out in Canada and almost everyone complies with the Canada-Mexico agreement, which makes them exempt from US tariffs. But he is paying a “modestly higher rate” in its European products.
“We continue to monitor the ongoing developments in relation to the possible possible tariffs of the United States on Canadian goods, as well as the possible impacts of second order on the consumer,” Bowden said.
The shares of Canada traded almost nine percent lower than $ 16.17 in the Toronto Stock Exchange at noon on Thursday.
