Despite suffering a 41 percent drop in wholesale revenues in its seasonally small Q1, Canada Goose generated 4 percent overall sales growth to 88.1 million Canadian dollars (€58.9m). Robust sales growth in the Asia Pacific region, sparked by consumer demand for the brand’s Spring-Summer 2024 collection, fueled the revenue expansion.
Nonetheless, the company’s overall Q1 results were not in line with market expectations. Gross margin fell by 540 basis points to 59.7 percent from 65.1 percent due to a lower revenue contribution from the group’s European manufacturing operation and a higher proportion of non-heavyweight down revenue. The net loss attributable to shareholders improved by 4.6 percent to C$77.4 million (€51.8m) from a loss of C$81.1 million. Period-end inventory was down by 7 percent year-over-year to C$484.3 million for the three months ended June 30.
By channel, Direct-to-consumer sales improved by 13 percent year-over-year to C$63.1 million (€42.2m), although DTC comparable sales fell by 4.4 percent. Meanwhile, the 41 percent reduction in wholesale revenues to C$16.0 million (€10.7m) was related to the group’s planned lower order book from existing customers as it worked to improve the quality of partners in the channel.
Regionally, retail comparable sales were down 10 percent in the EMEA to C$16.9 million (€11.3m) and off by 3 percent in North America to C$40.4 million (€27.0m). Currently, the group’s FY25 outlook includes D-t-c comparable sales growth in the low-single digits, a 20 percent drop in wholesale revenues, and an average mid-single digit percentage price increase.
In Q1, as Canada Goose moved forward with implementing its FY25 operating initiatives, the group welcomed its first Creative Director in Haider Ackermann, and his first design, the Polar Bears International Hoodie, and a related brand campaign.
