Canada Goose Holdings Inc. forecasts annual earnings and revenues above Wall Street estimates after reporting a surprise quarter-end profit on Thursday. It was encouraged by high demand for its luxurious parkas, jackets and coats.

The U.S. listed shares of the Toronto-based company increased 10% prior to the bell. This was a day following a wide market selloff that resulted from poor performance by U.S. retailers.

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 perfumes.

Canada Goose’s positive annual forecast contrasts with Tapestry’s luxury counterparts (NYSE:). Estee Lauder (NYSE:) Cos Inc. Their profit outlooks were reduced earlier in the month because of COVID-19 restrictions on key China markets.

Canada Goose indicated that revenue in fiscal 2023 will be C$1.30billion ($1.01billion) to C$1.40billion. Refinitiv IBES data shows that analysts on average anticipate it being C$1.30billion.

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.

The winterwear manufacturer forecasts first quarter revenue of C$60m to C$65m, which is lower than the market estimate of C$65.9m. This was due to renewed Chinese lockdowns that kept customers from visiting stores.

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. The company’s sales grew 6.8% to C$223.1million, surpassing estimates of C$222.7million.

($1 = 1.2816 Canadian dollars)