Citing an increasingly challenged global macroeconomic environment and a slowing business in September, Canada Goose has lowered its FY24 total revenue outlook by 7 to 14 percent. Total annual sales are now pegged at CA$1.2 billion to CA$1.4 billion (€819m to €956m). The adjusted guidance assumes direct-to-consumer will represent about 70 percent of all annual sales and a low-to-mid teens percentage decline in wholesale revenues due to a revised re-order outlook and an approximate 6 percent contraction in its wholesale door count.
In Q2 ended Oct. 1, the group reported an 18 percent increase in net income attributable to shareholders at CA$3.9 million (€2.7m) despite an 89 percent decline in operating income to CA$2.3 million (€1.6m). Adjusted Ebit fell by 41 percent to CA$15.6 million (€10.6m). Inventory at period end was up 2 percent year-over-year at CA$519.7 million (€354.7m).
Revenues inched up by 1.4 percent to C$281.1 million (€191.9m) from CA$277.2 million, and gross margin expanded by 410 basis points to 63.9 percent from 59.8 percent. Direct-to-consumer revenues increased by 12 percent on a constant-currency basis to CA$109.4 million (€10.6m) and accounted for 39 percent of overall revenues versus 34 percent in the year-ago period. Canada Goose opened six permanent stores during the period, including two in China and one in Japan, to increase its door count to 62.
Meanwhile, consistent with expectations, wholesale revenues declined by 15 percent to CA$162.0 million (€110.6m). The group opened its first branded standalone travel retail store at Frankfurt International Airport in September and more similar doors are planned for this year.
Regionally, EMEA sales growth contracted by 3.4 percent in constant currency to CA$93.2 million (€63.6m) in Q2. Elsewhere, Asia Pacific sales increased by 6.3 percent to CA$63.8 million (€43.5m) and declined by 10.7 percent in North America to CA$124.1 million (€84.7m).
