Shares of outdoor clothing retailer Canada Goose Holdings (NYSE:GOOS) popped Thursday morning after the company released its fiscal third-quarter 2021 earnings. As of 11:15 a.m. EST, the stock had gained 27%.
Though net income was down year over year, the CA$0.96 per diluted share reported exceeded analysts estimates of CA$0.86 according to FactSet. Revenue, however, rose over the prior-year period, marking the first increase in total revenue since the onset of the pandemic.
Strength in the business came from online and China sales. E-commerce revenue grew by 39.3% and China's direct-to-consumer (DTC) sales grew by 41.7%, the company reported. Canada Goose president and CEO Dani Reiss said in a statement, "The global strength of our brand and digital business has returned Canada Goose to growth in our biggest quarter."
The pandemic continues to impact the company, however. Seven of the company's 28 retail stores remain closed. And with just one quarterly period left in its fiscal year, Canada Goose is still not providing a financial outlook for the fiscal year due to "ongoing COVID-19 disruptions and uncertainties."
The company significantly increased its cash position to CA$469 million in the quarter from positive free operating cash flow as well as benefits from refinancing. The strong results have propelled the stock to levels last seen in November 2019, and reflects the start of a recovery from pandemic impacts.