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Source: William Potter ,Shutterstock
Summary
- Canada Goose hires Chinese designer to create its first line of East-West fusion collection.
- Its sales revenues from mainland China rose 42 per cent in the third quarter of 2020.
- Partners with NBA to design an exclusive range for players, and fans.
Lifestyle consumer brand Canada Goose Holdings Inc. (TSX: GOOS/ NYSE: GOOS) continues to impress investors with its range of chic designs and growing overseas business.
The company’s global e-commerce revenue surged 39 per cent in the third quarter ended December 27, 2020. While many of its stores remained closed at home due to the COVID pandemic, the company took advantage of the improving health situation in China to offset the domestic losses.
Its sales revenues from Chinese consumers rose nearly 42 per cent during the period. The company’s global e-commerce growth, mainly driven by mainland Chinese consumers, saw a significant revenue collection from depository transfer checks (DTC), amounting to C$299.4 million.
Furthermore, its total revenue collection of C$474 million during the quarter was up nearly 5 per cent compared to the figure in the corresponding period of the previous year.
Its net income was C$107.0 million, or C$0.96 per diluted share.
The results show a sustained resilience against the onslaught of the COVID disruptions, which had forced shut its 7 out of 28 retail stores in Canada, representing 25 per cent of all its retail outlets.
Pic Credit: Pixabay.
Why Canada Goose?
Given the impressive response from mainland China in the past year, the company has this year signed up a Chinese designer to customize some of its designs according to the local preference.
This would help cement a closer bond with its Chinese customers.
Angel Chen will design its first capsule collection, which is a fusion of Eastern and Western color and aesthetics with a contemporary look, primarily keeping the Chinese audience in mind. He will use advanced tools, such as augmented reality and computer-generated imagery, to design them.
Canada Goose has also partnered with the National Basketball Association (NBA) to design a special collection for its sportspersons and admirers leading up to its annual all-star celebration.
The multi-year partnership will also see a design collaboration with Los Angeles-based RHUDE, which designs and manufactures visually aesthetic streetwear lines.
Canada Goose stocks were trading at C$58.92 per share at 11:45 am ET on Tuesday. Its value had increased more than 75 per cent in the last six months. With a market cap of C$3.4 billion, the company operates across geographies, including Canada, the US, Asia, and Europe.
The above constitutes a preliminary view, and any interest in stocks should be evaluated further from an investment point of view.
