(Toronto) Canada Goose Holdings claims that her new ranges of Printemps and Summer clothing seem to find an echo with consumers, despite a significanter net loss during his last quarter.
The chief executive officer, Dani Reiss, stressed that clothing such as t-shirts and polo shirts were among the best sales of the company in recent months, helping to change the image of an exclusively winter brand.
“The spring and summer campaign has instilled in the brand a new, fun and relevant energy, with a clear message: we are also there for the summer,” Reiss told analysts at a conference call on Thursday.
The increase in temperatures and softer winters have pushed certain retailers, including Canada Goose, to rethink their range of products. Consequently, the company has expanded its offer to include light jackets, sweaters, wind and waterproof clothes, shoes and even glasses in recent years.
Despite the optimism of the leaders concerning these new product ranges, the luxury parkas manufacturer recorded a greater net loss of 125.5 million during its first quarter, compared to a loss of 74 million in the same quarter last year. This loss is partly explained by the increase in expenses in marketing campaigns and the expansion of its retail network.
On an adjusted basis, the Toronto company declared a loss of $ 1.29 per share during the quarter, against an adjusted loss of $ 0.80 per share last year.
If its net income has been affected, sales have progressed.
The quarter turnover amounted to 107.8 million, up 88.1 million a year ago.
Direct turnover to consumers has totaled 78.1 million, up 22.8 % compared to the previous year, while large turnover increased by 11.9 % to 17.9 million.
The financial director, Neil Bowden, said that expanding the company’s offer in the past 12 to 15 months had borne fruit. “This is why we are optimistic about the sustainability of the situation, despite a consumer market that is still quite unstable and difficult,” he said to analysts.
Consumer confidence has been shaken this year by persistent price threats from the United States and the economic slowdown, which has prompted many consumers to limit their expenses.
Bowden argued that 75 % of the company’s products are manufactured in Canada and that almost all of them comply with the Canada-State-Mexico agreement, which exempts them from American customs duties. However, the company pays a “slightly higher customs duty” on its European products.
“We continue to follow the evolution of the situation with regard to new potential American customs duties on Canadian products, as well as their possible secondary repercussions on the consumer,” said Bowden.
The action of Canada Goose ended Thursday more than 14 % to $ 15.15 on the Toronto Stock Exchange.