Canada Goose revenues jump 21 percent for Q1, retail drives growth

Canada Goose reported a significant 21 percent revenue growth for the first quarter of fiscal 2024, ending July 2, 2023, with sales increasing to 84.8 million CAD largely driven by DTC retail.

For this segment, revenue grew 60 percent, backed by a rise in in-store sales, contrasting that of wholesale, which saw revenues fall 18 percent due to the ongoing streamlining of the business.

Sales were also down 7 percent in EMEA, however had risen sharply in both North America and Asia, which each saw a 24 and 52 percent growth, respectively.

Meanwhile, the company’s gross profit grew 29 percent to 55.2 million CAD, with its margin for the quarter expanding to 65.1 percent compared to 61.1 percent in the Q1 of the year prior.

Selling, general and administrative expenses were up 154.9 million CAD from 124.9 million CAD due to investments into improving long-term operational efficiency and new store openings.

While its adjusted EBIT came in at 91.1 million CAD, up from 75.9 million CAD, the company’s operating loss also widened, rising from 82.2 million CAD to 99.7 million CAD. Net loss additionally took a hit, up from 63.5 million CAD to 85 million CAD, or 78 cents per basic share.

In a release, Dani Reiss, chairman and CEO of Canada Goose, reflected on the “strong start to the year” that had been reflected in a “solid demand” for the brand.

Reiss continued: “We remain focused on our growth pillars to drive results over the long-term.

“In the first quarter, we welcomed more new customers across every market into our expanding global retail network, and we continued to see product categories like apparel and accessories resonate with our customers.”

FY24 revenue expected to reach up to 1.5 billion dollars

For FY24, the company is expecting total revenue to hit between 1.4 and 1.5 billion CAD, with an adjusted EBIT ranging from 210 to 240 million CAD. Meanwhile, it forecasted its adjusted net income per diluted share to be in the range of 1.20 and 1.48 CAD.

For the second quarter of the year, total revenue is forecast to be between 270 and 290 million CAD, with an EBIT loss in the range of 30 to 20 million CAD.

The company is further expecting DTC channel growth from existing and new stores alongside a “modest” e-commerce growth to be offset by the earlier timing of wholesale shipments that took place in the first quarter of the year.