- Oops!Something went wrong.Please try again later.
Canada Goose reported fourth quarter earnings, showing a surge in online sales. Yahoo Finance Canada Senior Reporter Alicja Siekierska joins to discuss.
ZACK GUZMAN: Welcome back to Yahoo Finance Live. Earnings season continues to roll on here. We got famed coatmaker Canada Goose reporting a record quarter this morning, e-commerce sales surging 123% to help the company top revenue estimates. But the stock is down more than 6% today. for more on that, I want to bring on Yahoo Finance's Canada, senior reporter Alicja Siekierska for the latest there. Alicija.
ALICJA SIEKIERSKA: Yeah, so it's interesting. Canada Goose is essentially saying that the worst is officially behind them. CEO Dani Reese told analysts on a conference call that the company has shifted from recovery to growth beyond pre-pandemic levels. And you can see that here in the revenue results from the fourth quarter, up 48%. And this came as online sales and sales in China grew in the quarter. E-commerce sales were up 123%. And demand in China for Canada Goose has doubled. And that has really been a key driver of growth for the company, which has focused a lot of its retail expansion in China.
So we're still seeing that people are very much interested in purchasing a pricey parka, which raises the question of why the stock is down more than 6% today. And I think you can really attribute that to two things. There's footwear, which I'll get into in a second, and tourism, which is something that a lot of the analysts had focused on in the call today. Here's what CEO Dani Reese had told analysts about the impact of tourism on the business. Take a listen.
DANI REESE: We've not assumed a return of tourism this year. And that is the return of tourism to pre-pandemic levels, whenever that will happen, which is, nobody is able to predict that when it was able to happen, and it definitely offers a material upside to our business because it did represent such a large percentage of our sales. And they're completely incremental. They were at the time. We believe they will be again at some point in the future. This year, and the way we look at the year to come, we're not planning on tourism returning in fiscal '22.
ALICJA SIEKIERSKA: So as you can hear there, Canada Goose is assuming that global tourism is not going to return to those pre-pandemic levels in 2021. And I think that's a big reason why you are seeing the stock down, as their CFO Jonathan Sinclair said on the call today, the big needle for Canada Goose is tourism. He said that what changes the game when it comes to its retail stores and what's going to help improve margins for the company is global tourism.
And in fact, actually, margins was the one category in which Canada Goose managed to fall short of analysts' expectations. So I think that's why you're seeing pressure on the stock. And they also gave some insight into their footwear launch in the fall, which the CEO had also said that it is not going to have a meaningful impact on the business right away. It's just going to be about spurring demand. So I think perhaps analysts and investors were a little surprised to see that that footwear launch would not have a meaningful impact on the business right away.
ZACK GUZMAN: All right, Yahoo Finance Canada senior reporter Alicja Siekierska, I appreciate you coming on here to bring us that update. A lot of questions around why we're seeing that move today.