While reporting a 33.7 percent rise in fourth-quarter sales to 208 million Canadian dollars (€141.4m-$171.7m), an upbeat Canada Goose said it expects revenues to exceed C$1 billion (€680m-$826m) for the first time for the current financial year as it plans to open 10 new stores - six in Asia/Pacific, two in Germany, one in the U.K.and one in the US. - and to launch the brand’s first footwear range in the autumn.

The company forecasts that its annual DTC revenues will approach 70 percent of its total turnover, while wholesale revenues will be in-line with those of last year. The company also noted that launch its long-awaited footwear range would need “a significant level of upfront investment,” meaning it will “not be immediately profitable.”

for the three months to March 28, the Canada Goose’s direct-to-consumer (DTC) revenues were up by 50.8 percent to C$172.2m (€117m-$142.2m), driven by strong e-commerce growth and continued retail expansion in mainland China, offset by lower store revenues in other markets due to Covid-19 disruptions. DTC revenues increased by 101.4 percent in mainland China, which had been heavily impacted by the virus a year ago, as the country’s wealthy, who normally buy the company’s luxury parkas while traveling, purchased them in the company’s Chinese stores or online

Global e-commerce revenues surged by 123 percent in the quarter, with growth in all major established markets. They went up by nearly 200 percent in Germany and the U.K., and by over 100 percent in the U.S. This offset the closure of nine stores in Canada and Europe, representing 32 percent of the company’s footprint, for an average of eight weeks during a key sales period.

Six of 28 Canada Goose’s retail stores are still shut and the company does not expect any return of tourists at its locations during the current financial year.

Wholesale revenues were up by more than a third to C$33.3m (€22.4m-$27.2m) in the quarter due to higher in-season orders than in the comparative period of last year.

The operating margin recovered to 3.7 percent from a negative margin of 12.2 percent. Net income increased by 16 percent to C$2.9 million (€1.9-$2.4m).

The gross margin for the company’s DTC operations fell by 0.6 percentage points to 74.9 percent due to a rise in inventory provisions offset by the favorable impact of pricing and volume driven by parkas. The wholesale gross margin fell by 5.7 percentage points to 29.1 percent, as inventory provisions rose in a period with seasonally low revenue.

The good performance of the fourth quarter did not prevent the company from posting a 54 percent drop in net income to C$70.2 million (€47.7m-$55.4m) on 6 percent lower overall revenues of C$903.7 million (€614.5m-$713.3m). The gross margin fell by 0.6 percentage points to 61.3 percent and the operating margin declined by 18.2 percentage points to 20.1 percent.