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© Reuters. FILE PHOTO: Labels are seen on Canada Goose jackets in a store in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly (Reuters) -Canada Goose Holdings Inc forecast annual earnings and revenue above Wall Street expectations after reporting a surprise quarterly profit on Thursday, encouraged by strong demand for its luxury parkas and jackets.

U.S.-listed shares of the Toronto, Ontario-based company rose 10% before the bell, a day after a broad market sell-off triggered by poor results from U.S. retailers.

Demand for luxury goods has remained strong in North America even amid record levels of inflation, as higher prices of gas and food did not dissuade affluent consumers from splurging on high-end apparel, accessories and perfumes.

Canada Goose’s upbeat annual forecast is in contrast with those from its luxury peers Tapestry (NYSE:TPR) and Estee Lauder (NYSE:EL) Cos Inc that lowered their profit outlooks earlier this month due to fresh COVID-19 curbs in key China market.

Canada Goose said it expects revenue for fiscal 2023 to be between C$1.30 billion ($1.01 billion) and C$1.40 billion. Analysts on average expect it to be C$1.30 billion, according to Refinitiv IBES data.

The company, known for its expensive red parkas, said it expects an adjusted per-share profit of C$1.60 to C$1.90 for fiscal 2023, compared with analysts’ average estimate of C$1.61.

However, the winterwear maker forecast first-quarter revenue between C$60 million and C$65 million, lower than market estimates of C$65.9 million, as renewed lockdowns in China kept customers away from stores.

For the fourth quarter, the company reported a surprise per-share profit of 4 Canadian cents, while analysts expected a loss of 1 Canadian cent. Its sales rose 6.8% to C$223.1 million, topping estimates of C$222.7 million.

($1 = 1.2816 Canadian dollars)