(Reuters) -Canada Goose Holdings Inc forecast annual sales above Wall Street estimates on Thursday, betting that a sharp rebound in key luxury market China would help the luxury winterwear maker ride out a slowdown in U.S. demand.
U.S.-listed shares of the company jumped about 6% in premarket trading.
A reversal in China’s strict COVID-19 policy has brought consumers back to stores, encouraging wealthy shoppers to snap up everything from Coach handbags to Cartier jewelry and Birkin bags, with several companies banking on the country to boost sales this year.
Revenue from Canada Goose’s Asia Pacific segment jumped 65.4% to C$114.1 million in the quarter ended April 2, compared with a 5.2% drop in the previous quarter.
That has buttressed sales at a time when luxury shoppers in the United States have paused a post-pandemic splurge on high-end goods, with companies including LVMH and Gucci-owner Kering reporting sagging sales in the market.
Toronto, Ontario-based Canada Goose said it expects fiscal 2024 revenue between C$1.40 billion ($1.05 billion) and C$1.50 billion, compared with analysts average estimate of C$1.33 billion, according to Refinitiv data.
($1 = 1.3372 Canadian dollars)
(Reporting by Deborah Sophia in Bengaluru; Editing by Krishna Chandra Eluri)
