Aug 1 (Reuters) - Canada Goose beat Wall Street estimates for quarterly revenue on Thursday, benefiting from steady consumer demand in China for its puffer jackets and sweats, bucking an industry-wide slowdown seen by luxury players in the region.
The company's efforts to expand into the non-winter category by offering products that include rain and warm weather clothing such as fleece, t-shirts and shorts helped bump sales in the Asia-Pacific region and resulted in a third consecutive quarter of growth in China.
That came in contrast with results from top luxury names like LVMH, Burberry and Hugo Boss which still pointed to reduced spending on their products by shoppers in China, and a market that was taking longer to recover post-pandemic.
"(In China) we continue to open popup stores where and when we have opportunities to do that in the right time, and really our seasonally relevant spring and summer products have helped drive strong consumer demand," CEO Dani Reiss told Reuters.
Canada Goose's sales in Greater China rose 2.4% during the first quarter, while the United States saw a 0.4% rise.
After several quarters of falling sales, Canada Goose last quarter noted that demand had rebounded in the U.S. mainly in the e-commerce segment, while the wholesale segment remained under pressure.
Its wholesale revenues were down 41% in the first quarter, while sales through its own stores and online - known as the direct-to-consumer channel - rose 13% in the same period.
U.S.-listed shares of Canada Goose fell nearly 2% in volatile premarket trading.
The Toronto, Ontario-based group's first-quarter revenue rose 3.3% to C$88.1 million ($63.7 million), beating LSEG estimates of C$86.1 million.
It also posted a smaller-than-expected quarterly loss of 79 Canadian cents, compared to analysts' expectations for a loss of 80 Canadian cents. ($1 = 1.3824 Canadian dollars) (Reporting by Ananya Mariam Rajesh in Bengaluru; editing by Milla Nissi)
LVMH (MC.PA)
Burberry (BRBY)
