Canada Goose FY20 revenues rise 15.4 percent, sees Covid-19 hit in Q1

For fiscal 2020, Canada Goose Holdings Inc. said total revenue increased by 15.4 percent or 15.9 percent in constant currency to 958.1 million Canadian dollars (706.3 million dollars). Canada Goose said in a statement that the negative financial impacts of Covid-19 will be more pronounced in the first quarter ending June 28, 2020, with a negligible level of revenue expected.

Throughout the first seven weeks of the first quarter of fiscal 2021, 75 percent or 15 of 20 retail stores in the DTC channel were temporarily closed, while two of the five stores that were open during this period, both in Hong Kong, have been severely impacted by restrictions on inbound tourism. The company’s store in Paris re-opened on May 20, followed by Milan on May 29 and Montreal on June 2. The company is evaluating further openings on a staged region-by-region basis. Canada Goose added that this being off-season period, it is a low point for consumer purchasing online and in the wholesale channel, shipments to partners have been largely shutoff since March due to disruptions from retail store closures.

Review of Canada Goose’s full year results

The company added that DTC revenue increased to 525 million Canadian dollars (387.2 million dollars), driven by incremental revenue from new retail stores. The company said, this channel was severely impacted by political disruptions in Hong Kong and global Covid-19 disruptions in the third and fourth quarters of fiscal 2020, respectively.

Wholesale revenue increased to 424 million Canadian dollars (312.7 million dollars), driven by incremental revenue contributed by Baffin, higher pricing, and higher order values from international distributors. As COVID-19 disruptions to partner operations intensified through the fourth quarter, there was a significant reduction to shipments, impacting revenue. Other segment revenue increased to 9.1 million Canadian dollars (6.7 million dollars).

Canada Goose net income increases to 151.7 million dollars

Gross profit for the year was 593.3 million Canadian dollars (437.5 million dollars), a gross margin of 61.9 percent compared to 516.8 million Canadian dollars and 62.2 percent, respectively. Operating income was 192.1 million Canadian dollars (141.6 million dollars), an operating margin of 20.1 percent, compared to 196.7 million Canadian dollars and 23.7 percent, respectively.

The company added that net income was 151.7 million Canadian dollars (111.9 million dollars), or 1.36 Canadian dollars per diluted share compared to 143.6 million Canadian dollars, or 1.28 Canadian dollars per diluted share. Adjusted EBIT was 207.4 million Canadian dollars (152.9 million dollars), compared to 206.9 million Canadian dollars, while adjusted net income was 147.2 million Canadian dollars (108.5 million dollars), or 1.32 Canadian dollars per diluted share, compared to 151.6 million Canadian dollars or 1.36 Canadian dollars per diluted share.

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