Canada Goose's revenue up 4% to $88.1 mn in Q1 FY25

The growth was primarily driven by a 13 per cent increase in direct-to-consumer (DTC) revenue, which reached $63.1 million, up 12 per cent on a constant currency basis. This was bolstered by strong retail sales in the Asia Pacific region. However, DTC comparable sales decreased by 4.4 per cent year-over-year, the company said in a press release.

In contrast, wholesale revenue saw a significant decline, dropping by 41 per cent to $16.0 million, or 42 per cent on a constant currency basis. Other revenue categories performed better, with an increase of $7.1 million to $9.0 million.

Despite the revenue growth, Canada Goose's gross profit decreased by 5 per cent to $52.6 million compared to the same period in the prior year. The gross margin for the quarter fell to 59.7 per cent from 65.1 per cent in the first quarter of fiscal 2024.

Selling, general, and administrative expenses were reduced to $149.5 million, down from $154.9 million in the prior year period. However, the company still reported an operating loss of $96.9 million, compared to $99.7 million in the previous year.

Adjusted EBIT also worsened, recording a loss of $96 million compared to $91.1 million in the prior year period. Net loss attributable to shareholders was $77.4 million, or $0.80 per basic share, slightly improving from a net loss of $81.1 million, or $0.78 per basic share, in the same period last year.

“Canada Goose had a solid start to the year, as our Spring-Summer 2024 collection attracted new and existing customers to shop in our stores and online, contributing to revenue growth in our first quarter, which was especially robust in the Asia Pacific region,” said Dani Reiss, chairman and CEO of Canada Goose. “I’m encouraged by the early progress we made across our fiscal 2025 key operating imperatives, evolving our brand and product, welcoming our first-ever creative director, Haider Ackermann, advancing our retail execution plans, and introducing new ways of working to inspire greater operating discipline and efficiencies across the organisation.”

Fibre2Fashion News Desk (DP)