Canada Goose Holdings Inc. is expanding. Thanks to increased sales in its own store and online, the luxury parka brand was able to double its sales and generate record profits for the quarter.

For the quarter ending March 31, the Toronto-based label posted a net profit of 8.1 million Canadian dollars (5.3 million euros). Figures that are significantly better than analysts had predicted. A year ago, the company’s losses at the same time amounted to 23.4 million Canadian dollars (15.3 million euros). At 9:32 a.m. in Toronto on Friday (2:32 p.m. CET), Canada Goose shares had risen by almost 30% to an all-time high of 78.01 CAD, while the benchmark index fell by 0.3%.

The luxury parka maker is looking to increase its margins by expanding its direct-to-consumer business and relying less on struggling department stores. Its luxury positioning is helping it overcome the difficulties of the retail sector, and the company began opening its own stores in 2016. It is currently expanding its operations in China and Hong Kong and trying to reduce the costs of producing its down parkas.

Gross margin increased to 62.7% this quarter from 54.4% a year ago. Direct-to-consumer sales increased to 95 million Canadian dollars (€62 million) from 36.5 million Canadian dollars (€23.9 million), while wholesale sales nearly doubled to 30 million Canadian dollars (€19.6 million) compared to the same quarter last year.

“Canada Goose’s results and earnings are much better than analysts expected for this quarter, which is usually marked by declining volumes and financial losses. This clearly proves to investors that the brand is on track to double its revenues by 2021,” writes Brian Tunick, analyst at RBC Capital Markets, in a press release. “Despite its 60-year history, Canada Goose is at the beginning of its growth trajectory, especially as the luxury jackets and coats sector is fragmented and expanding. »

For the year ended March 31, Canada Goose announced that sales increased 46% to 591 million Canadian dollars (386 million euros) and net profit was 96 million Canadian dollars (62 million euros) or 86 Canadian cents (56 euro cents), compared to 21.6 million Canadian dollars (14.1 million euros) or 21 Canadian cents (13.7 euro cents) in the previous year.

The brand expects sales to increase by at least 20% and has revised its earnings per share forecast to 25% for fiscal 2019. The company hopes to maintain this growth over the next two years.

The company also announced plans to open three new stores in North America, adding to its seven stores around the world, and plans to open 20 stores worldwide by 2020.