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By Aditi Sebastian
(Reuters) - Canada Goose Holdings Inc beat estimates for third-quarter revenue and profit on Thursday, boosted by a surge in online sales and increased demand for its luxury parkas in China, sending its shares up 29%.
The company is doubling down on the Chinese market to tap into an increased domestic spending as affluent consumers who made a bulk of their purchases abroad before the COVID-19 pandemic cannot travel as freely as before.
Canada Goose is opening new stores in the country and collaborating with Chinese designer Angel Chen for a new collection.
"We saw strong double digit growth across all of our major markets, including China, and this growth is accelerating into the fourth quarter," Chief Executive Officer Dani Reiss said in an interview with Reuters.
Canada Goose, popular for its expensive parkas worn by Arctic scientists and Hollywood celebrities, has been investing heavily into its overseas markets and ramping up its digital business to cushion the hit from pandemic-led lockdowns.
"Our European business has performed very well, our revenue grew almost 30%...despite the impacts of store closures and international travel restrictions," Reiss said.
Global e-commerce revenue jumped 39.3% in the quarter ended Dec. 27, helping Canada Goose post revenue growth for the first time since the onset of the pandemic.
The company said its online strength will be able to combat weakened traffic due to pandemic-induced restrictions and the closure of 25% of its stores.
Shares of the Canadian company were trading at C$58.18, their highest in over a year, while its U.S.-listed shares also surged nearly 30%.
Excluding items, it reported a profit of C$1.01 per share, beating estimates of 86 Canadian cents.
Revenue rose 4.8% to C$474.0 million ($369.97 million), beating analysts' average estimate of C$415.27 million, according to IBES data from Refinitiv.
($1 = 1.2812 Canadian dollars)
(Reporting by Aditi Sebastian; Editing by Shinjini Ganguli)