Canada Goose Holdings posted a surprise quarterly profit and topped Wall Street estimates for revenue on Thursday, as the luxury parka maker benefits from a demand recovery in China, as well as its tight cost controls.

Its US-listed shares rose 5 percent in premarket trading, as its robust performance in China contrasts with comments from bigger luxury brands such as Gucci-owner Kering and LVMH .

Revenue rose 2.5 percent in Greater China in the second quarter, Canada Goose said, the fourth consecutive quarter of growth in the region.

Canada Goose, whose parkas can retail for more than US$1,000, has also diversified by entering the non-winter category to include rain and warm weather clothing.

Excluding one-off items, Canada Goose posted a profit of 5 Canadian cents per share, compared with estimates for a loss of 5 Canadian cents.

Selling, general and administrative expenses fell about 8 percent to C$162.5 million due to a cost-saving program that involved job cuts.

"Our second-quarter performance reflected steady progress across our operating priorities, as we navigated an increasingly challenging macro environment that affected consumer sentiment," CEO Dani Reiss said.

Still, the Ontario-based company tempered its fiscal 2025 revenue expectations due to weak spending on luxury goods in the US.

It now expects fiscal 2025 revenue to range from a low-single-digit decline to a low-single-digit increase, compared to its previous forecast of low-single-digit growth.

Revenue in North America declined 3 percent in the reported quarter, compared to a 0.4 percent rise in the previous quarter.

Canada Goose said second-quarter revenue fell to C$267.8 million (US$193 million) from C$281.1 million, a year earlier.

Analysts on average had expected revenue of C$260.2 million, according to data compiled by LSEG. (Reuters)