EmailCanada Goose (GOOS 57.86, +12.01, +26.19%) is soaring to new all-time highs
after the company blew away fourth quarter (March) estimates this morning. The
company manufactures and sells luxury outdoor apparel for a variety of
demographics, both through online retailers and brick and mortar retail stores.
Fourth quarter sales grew 144% to CAD 125 mln while adjusted EPS
swung to a CAD 0.09 profit from a CAD 0.15 loss last year. Canada Goose
exceeded sales estimates by a whopping 62% and was expected to report a modest
net loss.
It's not often you see a company outperform expectations by that
wide of a margin without some one-time items affecting comparability. But this
was a clean, massive beat.
Canada Goose also forecast fiscal 2019 adjusted EPS and revenue
above consensus, calling for growth of at least 25% and at least 20%, respectively.
Canada Goose also raised its long term financial forecast. Over
the next three years, the company expects annual revenue growth of at least
20%, and average annual growth in adjusted EPS of at least 25%. The prior
three-year forecast called for mid-to-high teens revenue growth and 20%
adjusted EPS growth.
The company has now handily beaten Wall Street expectations all
four quarters since its IPO fifteen months ago. What's more, fiscal 2018 revenue growth accelerated to 46% from
39% in fiscal 2017.
"Our execution in fiscal 2018 was exceptional across all
growth strategies and key metrics. These results reinforce my belief that we
are still just scratching the surface of our global potential. As we continue
to bring more Canada Goose to more of the world, we are resolutely focused on
the long term and what we need to get there. Fiscal 2019 will be another
exciting year, as we make significant strategic investments in infrastructure
and people to support our foundation for enduring growth," stated Dani
Reiss, President & Chief Executive Officer.
The only knock on the stock is valuation after its massive run.
Canada Goose now sports a valuation of over $6 bln (USD) and trades at nearly
70x EPS estimates for fiscal 2019.
The Canada Goose story has really stuck out in a market with a
lack of luxury retail growth stories.
than one year.
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