- Prachi Singh |
Canada Goose total revenue for fiscal 2018 second quarter, total revenue increased by 44.4 million Canadian dollars (34.9 dollars) from, representing year-over-year growth of 34.7 percent. Net income was 37.1 million Canadian dollars (29 million dollars) or 0.33 Canadian dollar (0.26 dollar) per diluted share compared to 20 million Canadian dollars (15.7 million dollars) or 0.20 Canadian dollar (0.16 dollar) per share, in the second quarter of 2017.
“With strong results across channels, geographies and categories, we continue to drive awareness and penetration while inspiring those who already know and love our brand. Most importantly, we remain deeply committed to building an enduring brand for the long term,” said Dani Reiss, President & Chief Executive Officer in a media statement.
Review of second quarter results
The company said, wholesale revenue for the quarter was 152.1 million Canadian dollars (119 million dollars) compared to 122.4 million Canadian dollars (96 million dollars) in the second quarter of fiscal 2017, driven by growth across all regions.
Direct-to-consumer revenue increased to 20.3 million Canadian dollars (15.9 million dollars), driven by strong growth in the North American e-commerce business and incremental revenue from new retail stores and e-commerce sites which were not operating in the same period last year.
Gross profit increased to 87.1 million Canadian dollars (68 million dollars) and as a percentage of total revenue, gross profit was 50.5 percent. Wholesale gross profit was 72.2 million Canadian dollars (56 million dollars), a gross margin of 47.4 percent resulting from a shift in sales to higher margin geographies, lower cost of purchases in US dollars and lower inventory reserves. Direct-to-consumer gross profit increased to 14.9 million Canadian dollars (11.7 million dollars) and a gross margin was 73.7 percent.
Adjusted EBITDA was 46.4 million Canadian dollars (36 million dollars), representing year-over-year growth of 37.3 percent. Adjusted net income per diluted share was 0.29 Canadian dollar (0.23 dollar) compared to 0.23 Canadian dollar (0.18 dollar) in the second quarter of fiscal 2017.
Canada Goose revises fiscal 2018 outlook
Based on stronger than expected growth across the business, with a particular contribution from direct-to-consumer segment, the company expects fiscal 2018 results to exceed the long-term and fiscal year outlook which was originally provided with the release of fourth quarter and fiscal year 2017 results on June 2, 2017.
For fiscal 2018, the company currently expects annual revenue growth on a percentage basis of at least 25 percent versus the previous expectation of mid-to-high teens; adjusted EBITDA margin expansion of at least 50 basis points versus the previous expectation of flat to modestly expanding; and annual growth in adjusted net income per diluted share on a percentage basis of at least 35 percent versus the previous expectation of approximately 20 percent.
Picture:Canada Goose website