Updates shares, adds management and analyst comments in paragraphs 4 and 8
May 21 (Reuters) - Canada Goose GOOS.TO, GOOS.N on Wednesday withheld from providing its fiscal 2026 forecast due to tariff-related uncertainty, even as strong winter season sales drove its quarterly revenue, lifting its shares 22% higher.
The parka maker joined several other companies in either withholding, cutting or withdrawing expectations for the year following the Trump administration's unpredictable tariff shifts.
There are some U.S. tariffs but the majority of the company's products are not under these levies, CEO Dani Reiss told Reuters.
Canada-made products are exempt from tariffs under the trade agreement between the country, U.S. and Mexico, while higher tariffs on European-made goods have minimal impact, Chief Operating Officer Beth Clymer said on post-earnings call.
Tariff policies sparked a global trade war, rattling businesses and Americans who are bracing for price hikes. Retail behemoth Walmart WMT.N has already hiked prices on some items.
Canada Goose, driven by winter wear, saw strong sales during the key January to March season, partly aided by a Lunar New Year campaign in China, its biggest market that generates 31.7% of its total revenue. Greater China revenue surged 63.1%.
In the United States, a marketing campaign with fashion designer Haider Ackermann, which kicked off in November, aided a 15.3% rise in quarterly revenue. The country accounts for 24.3% of total revenue.
"Canada Goose has bolstered its brand equity through exciting collections and collaborations and this has improved its ability to engage customers through direct channels that foster stronger loyalty and better insights," said Sky Canaves, an analyst with market research firm eMarketer.
Benefits from leaner inventory levels as well as robust growth of 15.7% in the direct-to-consumer channel strengthened its margins.
The company posted quarterly revenue of C$384.6 million ($277.15 million), beating analysts' estimates of C$356.4 million, according to data compiled by LSEG.
It earned adjusted profit of 33 Canadian cents per share, above estimates of 23 Canadian cents.
($1 = 1.3877 Canadian dollars)
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Pooja Desai and Leroy Leo)
((AnujaBharat.Mistry@thomsonreuters.com;))