(Reuters) – Canada Goose Holdings (NYSE:GOOS) Inc forecast annual sales above Wall Street estimates on Thursday, betting on a sharp rebound in key luxury market China to help ride out a demand slowdown in the United States, sending its U.S.-listed shares up 13% premarket.

The high-end winterwear maker beat expectations for fourth-quarter results, as robust demand in Europe and Canada also helped.

A reversal in China’s strict COVID-19 policy has brought consumers back to stores, encouraging wealthy shoppers to snap up everything from Coach handbags to Cartier jewelry and Birkin bags, with several companies banking on the country to boost sales this year.

That has buttressed sales at a time when luxury shoppers in the United States have paused a post-pandemic splurge on high-end goods, with companies including LVMH and Gucci-owner Kering (EPA:PRTP) reporting sagging sales in the market.

Revenue from Canada Goose’s Asia Pacific segment jumped 65.4% to C$114.1 million in the quarter, while U.S. revenue declined 4.5% to C$67.5 million.

Canada Goose, popular for its bright-red parkas and pricey puffer jackets, has about 18 retail stores in Mainland China – the highest number of outlets it has in any country – with Asia amounting to a majority of its sales.

The company is also planning to double its store count worldwide over the next five years, from 51 permanent stores currently.

Toronto, Ontario-based Canada Goose said it expects fiscal 2024 revenue between C$1.40 billion ($1.05 billion) and C$1.50 billion, compared with analysts average estimate of C$1.33 billion, according to Refinitiv data.

However, it forecast annual per-share profit in the range of C$1.20 to C$1.48, compared to estimates of C$1.46 per share.

Revenue rose to 31.4% to C$293.2 million in the quarter ended April 2, beating estimates of C$259.1 million, while an adjusted per-share profit of 14 Canadian cents topped expectations of 11 Canadian cents.

($1 = 1.3372 Canadian dollars)