Canada Goose Q4 revenues grow 22 percent

Canada Goose revenue increased 22 percent or 23 percent on a constant currency basis to 358 million Canadian dollars for the fourth quarter.

Gross profit grew 22 percent to 233 million Canadian dollars and gross margin for the quarter was 65.1 percent.

“Our fourth quarter results came in ahead of guidance, reflecting the power of our iconic brand and the disciplined execution of our strategy by our team,” said Dani Reiss, chairman and CEO of Canada Goose in a statement.

Canada Goose Q4 net income increases

The company’s DTC revenue grew 19 percent or 21 percent constant currency to 271.5 million Canadian dollars driven by strong retail sales in Asia Pacific and North America. DTC comparable sales increased 3.5 percent driven by higher ecommerce sales.

The company said, wholesale revenue decreased 9 percent or 8 percent constant currency to 41.4 million Canadian dollars. Other revenue increased 123 percent or 124 percent constant exchange to 45.1 million Canadian dollars.

Operating income for the fourth quarter rose to 23.1 million Canadian dollars, adjusted EBIT increased to 40.1 million Canadian dollars and net income was 5 million Canadian dollars or 5 Canadian cents per diluted share.

Adjusted net income rose to 19.3 million Canadian dollars or 19 Canadian cents per diluted share compared to the prior year period.

Highlights of Canada Goose full year results

Total revenue increased 10 percent or 9 percent at constant exchange to 1,333.8 million Canadian dollars.

Within this, the company said, DTC revenue grew 18 percent or 17 percent on a constant currency basis to 950.7 million Canadian dollars with DTC comparable sales up 0.3 percent.

Wholesale revenue decreased 16 percent or 19 percent on a constant currency basis and other revenue increased 97.2 percent to 70.8 million Canadian dollars.

Gross profit grew 12.5 percent to 917.4 million Canadian dollars and gross margin for the year expanded to 68.8 percent. Operating income was 124.5 million Canadian dollars and adjusted EBIT was 171.8 million Canadian dollars.

Net income reduced to 58.4 million Canadian dollars or 57 Canadian cents per diluted share and adjusted net income was 101 million Canadian dollars or 99 Canadian cents per diluted share.

Canada Goose forecasts low-single-digit revenue growth for FY25

For fiscal 2025, Canada Goose expects revenue to grow in the low-single-digits, DTC comparable sales growth in the low-single-digits and incremental revenue from three new stores and four concession-based shop-in-shops to contribute to DTC revenue growth.

The company forecasts a 20 percent decrease in wholesale revenue due to a tightening of the wholesale order book to largely offset the benefit contributed by DTC revenue growth and the planned pricing increase.

Consolidated gross margin percentage is expected to be similar to fiscal 2024.

As a result of the above, non-IFRS adjusted EBIT margin is expected to expand by approximately 100 basis points compared to fiscal 2024 and adjusted net income per diluted share to grow by a mid-teen percentage year-over-year.