Canada Goose, the iconic Canadian luxury outerwear brand, has encountered a tough quarter due to the widespread lockdown measures implemented globally amid the Covid-19 pandemic. The company’s financial performance took a hit, with a substantial decrease in revenue, plummeting to C$26.1 million in its first quarter ending on June 28, as compared to C$71.1 million during the same period the previous year.
The repercussions of the pandemic are clearly seen in Canada Goose’s financial figures, with a net loss of C$50.1 million for the quarter, widening from C$29.4 million in the previous year. Gross profit also suffered a significant downturn, dwindling to just C$4.8 million, in contrast to C$40.9 million a year ago.
In spite of these challenges, Dani Reiss, the president and CEO of Canada Goose, remains hopeful about the company’s future. He highlights the brand’s resilience and ability to innovate amidst these extraordinary circumstances. Reiss underscores the importance of approaching the upcoming season strategically, especially as signs of recovery begin to emerge worldwide.
During Q1 FY21, the direct-to-consumer (DTC) revenue for Canada Goose witnessed a notable decline, dropping to C$10.4 million from C$34.8 million. This decrease can be attributed to temporary store closures and reduced operating hours due to the disruptions caused by the pandemic. Nonetheless, revenue generated through e-commerce remained steady compared to the same quarter last year, signaling the strength of Canada Goose’s online sales channels.
Additionally, wholesale revenue for the company also experienced a decline, decreasing to C$8.7 million from C$35.6 million. This decline underscores the challenges faced by Canada Goose in the current retail environment.
Reiss emphasizes the need for discipline, adaptability, and strategic planning in navigating the uncertainties brought about by the pandemic. He expresses confidence that Canada Goose is well-equipped to capitalize on opportunities and drive growth as the global economy gradually recovers.
As Canada Goose continues to adjust to the evolving market landscape, the brand remains dedicated to providing top-notch, innovative outerwear products to customers worldwide. Despite the setbacks encountered during this trying period, Canada Goose is resolute in its determination to emerge as a more resilient and stronger brand in the post-pandemic landscape.
For more information about Canada Goose and its products, visit their official website here. Interested in exploring Canada Goose’s sustainability efforts and initiatives? Click here to learn more.
