Canada Goose reports 6 percent increase in Q3 revenues

Canada Goose third quarter revenues increased 6 percent to 609.9 million Canadian dollars, up 5 percent on a constant currency basis.

Canada Goose expects fourth quarter revenue between 310 million and 330 million Canadian dollars, adjusted EBIT between 14 million Canadian dollars and 27 million Canadian dollars and adjusted net income per diluted share between 0.02 and 0.13 Canadian dollars.

For fiscal 2024, the company expects revenue between 1.285 billion and 1.305 billion Canadian dollars, adjusted EBIT between 146 million and 158 million Canadian dollars, representing a margin of between 11 and 12 percent and adjusted net income per diluted share between 0.82 and 0.92 Canadian dollars.

“While we continue to operate in a challenging consumer spending environment, we are encouraged by our holiday performance, which saw record traffic levels and strong revenue generated during key consumer moments,” said Dani Reiss, chairman and CEO of Canada Goose.

The company’s DTC revenue grew 14 percent to 514 million Canadian dollars, up 14 percent on a constant currency basis, driven by growth of in-store retail sales. Canada Goose said, DTC comparable sales decreased 1.6 percent due to lower e-commerce sales, partially offset by higher comparable in-store sales.

Wholesale revenue decreased 28 percent or 30 percent on a constant currency basis, due to a planned lower order book value resulting from lower orders from existing customers and the ongoing streamlining of wholesale relationships.

Revenue grew by 62 percent in Asia Pacific with higher sales across all channels. Revenue was down 26 percent in EMEA and 14 percent in North America due to the decline in e-commerce and wholesale revenue, partially offset by contribution from new stores.

Gross profit grew 8 percent to 449.7 million Canadian dollars, while gross margin expanded to 73.7 percent. Operating income was 198.8 million Canadian dollars, adjusted EBIT was 207.2 million Canadian dollars, net income was 130.6 million Canadian dollars or 1.29 Canadian dollars per diluted share and adjusted net income was 138.6 million Canadian dollars or 1.37 Canadian dollars per diluted share.