Canada Goose (NYSE:GOOS) stock was soaring 11% higher heading into midday trading Wednesday after the outerwear company reported fiscal fourth-quarter earnings that beat analyst expectations.
Corporate earnings coming in ahead of Wall Street forecasts has been rare during the COVID-19 pandemic, particularly for retailers like Canada Goose. Yet despite the stronger-than-expected showing amid cost cutting, the coat maker says the current quarter will be a mess due to negligible revenue after it was forced to shut stores in markets across the globe.
While the near blackout during its fiscal first quarter would typically mean a disaster in the making, this period is Canada Goose's weakest quarter of the year anyway, representing around 7% of full-year sales. Three-quarters of its stores have been closed since mid-March, and those that were open have done little business. Further, its wholesale channel, which is largely department stores, has also been closed, shutting off that avenue for sales.
While it does have an e-commerce platform and engagement has been strong, now is just not a time when consumers are buying winter parkas. Canada Goose is slowly reopening its stores, but it says there is "a negligible level of revenue expected" for the period.
Canada Goose reported fourth-quarter revenue of 140.9 million Canadian dollars, generating a profit of CA$0.02 per share, ahead of the CA$126.5 million and CA$0.13 per-share loss analysts expected.