Canada Goose Holdings Inc has forecast an increase in annual revenue and earnings over Wall Street’s expectations. The company reported a surprising quarterly profit Thursday. This was aided by the strong demand for luxury jackets and parkas.

The U.S. listed shares of the Toronto-based company rose 10% prior to the bell on Tuesday, one day following a wide market selloff that was triggered by weak results from U.S. retails.

North America’s luxury goods market has been strong despite record-breaking inflation. However, higher gas prices and increased food costs have not stopped affluent Americans from buying high-end clothing, accessories and fragrances.

Canada Goose’s positive annual forecast contrasts with Tapestry’s luxury counterparts (NYSE:). Estee Lauder (NYSE) Cos Inc. This month, Cos Inc. lowered its profit outlooks due to COVID-19 new curbs in China’s key markets.

Canada Goose indicated that revenue in fiscal 2023 will be C$1.30billion ($1.01billion) to C$1.40billion. According to Refinitiv IBES data, analysts expect it to average C$1.30 trillion.

This company is well-known for making expensive red parkas. It expects an adjusted per share profit between C$1.60 and C$1.90 in fiscal 2023. Analysts’ average estimation of C$1.61 was C$1.61.

Winterwear company forecasts C$60 million to C$65million in first-quarter revenues, lower than C$65.9million market estimates. Customers were kept away by stores due to China’s renewed lockdowns.

In the fourth quarter of 2018, the company posted a surprising per-share profit, of 4 Canadian Cents. Analysts had expected a loss, of 1 Canadian penny. Sales rose 6.8%, to C$223.1 Million. This was higher than the C$222.7 million estimate.

($1 = 1.2816 Canadian dollars)