Canada Goose Q4 Tops Street on EPS, Misses on Revenue

Canada Goose (GOOS, GOOS.TO) is down more than 14% in pre-market trading as the luxury apparel retailer posted fiscal Q4 adjusted earnings of CAD0.09 ($0.07) per share, flat with CAD0.09 in the same period a year ago and exceeding the estimate of CAD0.05 from analysts polled by Capital IQ.

For the quarter ended March 31 total revenue of CAD156.2 million ($115.7 million) was up from CAD124.8 million in the same period a year ago and missed the Street projection of CAD158.9 million.

For fiscal 2020, Canada Goose expects adjusted EPS to increase by at least 25% from CAD1.36 in fiscal 2019. The guidance implies an expectation of CAD1.70, topping the Street estimate of CAD1.64. The company anticipates fiscal 2020 revenue to increase by at least 20% from CAD830.5 million in fiscal 2019. The guidance implies an expectation of at least CAD996.6 million, compared the Street projection of CAD1.05 billion. The company said it anticipates “materially larger losses in adjusted EBIT and adjusted net income per diluted share” in fiscal Q1 due to a larger number of retail stores operating during off-peak periods and more investments to support growth, including local market activation ahead of planned retail openings, new product and Greater China operations.

Canada Goose said over the next three fiscal years it expects average annual adjusted EPS growth of at least 25% and average annual revenue growth of at least 20%.

The company also said its board has authorized a normal course issuer bid for cancellation up to 1.6 million subordinate voting shares beginning May 31 and