Shares of Canada Goose Holdings (GOOS -0.54%) were up 6.1% as of 10:23 a.m. ET on Thursday after the company reported earnings results for the fiscal fourth quarter ending April 3. The company reported record sales for fiscal 2022 and sees more growth ahead.
At the current share price of $20.01, the stock has fallen more than 50% from its 52-week high of $53.64. However, the stock is 71% off its all-time high of $72.27 from 2018. Could the latest results signal a rebound for the struggling apparel stock?
Revenue of $223 million was a 6.8% increase year over year. This was driven by direct-to-consumer growth of 8% year over year and wholesale revenue growth of 3.5%.
While the company reported a net loss of $9.1 million compared to the year-ago profit of $2.5 million, investors were enthusiastic about the general level of demand reflected in the revenue numbers and management's outlook for the rest of the year.
Management expects improved traffic and less global disruptions to the supply chain to grow sales further in fiscal 2023. Full-year guidance calls for revenue to between $1.3 billion and $1.4 billion, representing a year-over-year increase of 23% at the midpoint of the range. The reaction to management's updated outlook is a nice reversal after investors were previously disappointed with guidance issued earlier this year for the recent quarter.
Canada Goose plans to expand to new markets, form new partnerships, open more stores, and expand product categories to drive long-term growth. The latest results and guidance reflect a brand still on the rise globally, which could make this under-the-radar apparel stock a good value at these lows.