Yahoo Finance Canada Goose CEO: 'It's going to be a strong holiday season, actually'
Despite a stock market that is well off its highs and inflation that continues to weigh on consumers, the holiday season looks bright for $1,000-plus coats and snow-crushing boots.
“I think it’s going to be a strong holiday season, actually,” Canada Goose CEO Dani Reiss said during Yahoo Finance Live's exclusive coverage of the 29th annual Goldman Sachs retail conference on Wednesday.
Reiss's bullish commentary is noteworthy as Canada Goose, among other wholesalers that sell into department stores, is smack in the middle of planning orders for the holiday season.
That said, Reiss acknowledged the sales strength will likely vary by geography. The company operates 43 of its own retail stores around the world, increasingly in China.
Canada Goose stock spiked more than 6% in midday trading on Wednesday.
In mid-August, Canada Goose said that its fiscal first-quarter sales rose a better-than-expected 24.2%. Sales increased in both the company's direct-to-consumer (+19.6%) and wholesale divisions (+27.2%).
"We are very happy that our products never go on sale," Reiss said, pushing back on the notion Canada Goose will be swept into the promotional wave that is currently hammering apparel players.
Reiss told analysts on a conference call that he wasn't seeing any "slowing" in consumer demand despite the volatile economic backdrop globally.
"We continue to think Canada Goose is still an authentic brand in a great category that is still rebounding from COVID and could really take off when China is back," Omar Saad, analyst at Evercore ISI, said in a note to clients. "We think the luxury outerwear category is one of the healthiest, early-stage, high-value sub-sectors within luxury. Canada Goose, the #2 player (albeit a distant #2) shares trade at only 12x 2024 P/E."
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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