Canada Goose, the prominent producer of high-end outerwear designed for extreme weather conditions, has reported a significant surge in revenue for the first quarter of fiscal 2024 (Q1 FY24). The company’s total revenue reached $84.8 million, marking a 21% increase, or an 18% increase on a constant currency basis. This growth can be attributed to a substantial rise in direct-to-consumer (DTC) sales, which increased by 60%, or 54% on a constant currency basis. DTC sales now make up 66% of Canada Goose’s total revenue, compared to 50% for the same period last year. Year-on-year, DTC comparable sales also grew by 28%. However, wholesale revenue experienced a decline of 18%, or 19% on a constant currency basis.
In terms of geographical performance, Canada Goose’s revenue increased by 24% in North America and a staggering 52% in the Asia Pacific region. Conversely, there was a 7% decline in the EMEA region, largely due to decreased wholesale revenue. Nonetheless, the company had foreseen this downturn and witnessed a slight boost in DTC sales, which helped offset the decline.
In addition to the growth in revenue, Canada Goose also saw a positive development in gross profit, which increased by 29% to $55.2 million. The gross margin for the quarter expanded to 65.1%, compared to 61.1% in the first quarter of fiscal 2023. However, the company’s operating loss rose to $99.7 million, compared to $82.2 million in the same quarter of the previous year. The adjusted EBIT (earnings before interest and taxes) was reported as minus $91.1 million, compared to minus $75.9 million in the first quarter of fiscal 2023. Additionally, Canada Goose reported a net loss of $85 million, or $0.78 per basic share, compared to a net loss of $63.6 million, or $0.59 per basic share, in the first quarter of fiscal 2023. The adjusted net loss was $73.1 million, compared to $58.8 million.
Despite the loss, Canada Goose remains confident about its future prospects. “We had a strong start to the year, with first-quarter results reflecting solid demand for our brand, especially as more customers shop directly with us,” said Dani Reiss, Chairman and CEO of Canada Goose. Reiss highlighted the company’s commitment to its growth pillars, which aim to drive long-term results. During the first quarter, Canada Goose expanded its global retail network and attracted new customers across all markets. The company’s product categories, particularly apparel and accessories, have resonated well with customers.
Throughout the quarter, Canada Goose opened three new permanent stores, one in Dublin, Ireland, and two in North America. This expansion brings the total number of permanent stores to 54. Additionally, in July, the company inaugurated a new store at the Beverly Center in Los Angeles.
Overall, Canada Goose has witnessed a surge in revenue, primarily due to its strong DTC sales, despite a decline in wholesale revenue. The company continues to focus on its growth pillars and expand its global retail network to attract new customers. With its luxury extreme weather outerwear and ongoing expansion efforts, Canada Goose is well-positioned for continued success in the market.
Useful links:
– [Canada Goose Official Website](https://www.canadagoose.com/)
– [Canada Goose Investor Relations](https://investor.canadagoose.com/home/default.aspx)
