Operating income rose by 2.8 percent to C$204.3 million (€137.3m) for the period ended Dec. 29 as net income attributable to shareholders improved by 7.0 percent to C$139.7 million (€93.9m).
In a period where the group introduced a “Snow Goose” capsule that is said to re-imagine the heritage of Canada Goose through a new lens, the company exceeded its revenue and income estimates for the period.
Operating income rose by 2.8 percent to C$204.3 million (€137.3m) for the period ended Dec. 29 as net income attributable to shareholders improved by 7.0 percent to C$139.7 million (€93.9m). Third gross margin increased by 70 basis points year-over-year to 74.4 percent due to pricing and lower inventory provisioning. Year-over-year inventory declined by 15 percent to C$407.4 million (€273.7m) due to a temporary reduction in production levels.
Revenues fell by 2.0 percent to C$607.9 million (€408.4m) with DTC sales up by a 0.7 percent year-over-year to C$517.8 million (€347.9m) and wholesale sales down by 7.5 percent to C$75.7 million (€50.9m). In the EMEA, sales declined by 4 percent due to a weak UK market that negatively impacted the region’s Dtc results. North American comparable sales, meanwhile, increased by 22 percent year-over-year.
Continues to focus on inventory management and labor optimization
The company’s continued focus on inventory management, labor optimization, and boosting sales training sparked year-over-year improvements in store conversion rates in the EMEA and North America. But in the EMEA, challenging traffic trends in the UK offset the year-over-year improvement in conversion rates.
“Europe is a market where it’s sort of the tale of two halves,” commented CFO Neil Bowden. “The UK is a spot where we have experienced and seen more macro headwinds than we have across Continental Europe where our traffic is up and we’re really happy with the performance.”
Canada Goose has largely maintained its FY25 outlook except for Dtc comparable sales growth, now projected at flat to a mid-single digit decline instead of a low-single digit increase to low-single digit decline. Annual wholesale revenues continue to be pegged at a 20 percent decline and the consolidated gross margin is forecast at flat year-over-year. In January, the company hired London-based Judit Bankus as its new SVP of merchandising.
