Canada Goose's revenue jumps 21% to $84.8 mn in Q1 FY24

Direct-to-consumer (DTC) sales saw a substantial increase, growing by 60 per cent, or 54 per cent on a constant currency basis. This growth was primarily fuelled by an uplift in in-store retail sales. As a result, the revenue from DTC channels increased to 66 per cent of the total, up from 50 per cent for the same period last year. Year-on-year, DTC comparable sales increased by 28 per cent. However, wholesale revenue experienced a decrease of 18 per cent, or 19 per cent on a constant currency basis, the company said in a press release.

Geographically, revenue grew by 24 per cent in North America and 52 per cent in Asia Pacific. On the contrary, there was a 7 per cent decrease in the EMEA region, attributed primarily to the drop in wholesale revenue. This downturn, expected by the company, was slightly countered by a boost in DTC sales.

Gross profit also improved, growing 29 per cent to $55.2 million, and gross margin for the quarter expanded to 65.1 per cent compared to 61.1 per cent in the first quarter of fiscal 2023.

Selling, general and administrative expenses were reported to be $154.9 million, a rise from $124.9 million in the same period last year.

However, the company's operating loss increased to $99.7 million, compared to $82.2 million in the first quarter of fiscal 2023. Adjusted EBIT was reported to be minus $91.1 million, compared to minus $75.9 million in the first quarter of fiscal 2023.

The company also reported a net loss of $85 million, or $0.78 per basic share, compared with a net loss of $63.6 million, or $0.59 per basic share for the first quarter of fiscal 2023. Adjusted net loss was $73.1 million, or $0.70 per basic share, compared with an adjusted net loss of $58.8 million, or $0.56 per basic share for the same period in fiscal 2023.

“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. “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.”

Inventory as of the first quarter ending July 2, 2023, was $522.1 million, a 3 per cent increase from the first quarter ending July 3, 2022.

Canada Goose also added three new permanent stores to its portfolio during the quarter, one in Dublin, Ireland, and two in North America, specifically in Las Vegas, Nevada and Bellevue, Washington. This brings the total permanent store count to 54. A new store was also opened in July at the Beverly Center in Los Angeles.

Fibre2Fashion News Desk (DP)