Canada Goose’s second quarter operating income declined 30 percent to C$1.6 million from C$2.3 million on a 4.7 percent drop in total revenues to C$267.8 million (€178.8m) from C$281.1 million. Thanks to a C$13.2 million income tax recovery, the company reported a 54 percent increase in profitability to C$6.3 million (€4.2m) for the period ended Sept. 29.
The group reported both lower wholesale and DTC revenues in Q2. Wholesale fell 15 percent, as expected, to C$137.3 million on a planned lower order book, and DTC sales slipped 5 percent to $103.9 million on a 13 percent contraction in comparable store sales. DTC comps were weaker in both North America and Asia-Pacific, but the segment’s results improved sequentially in EMEA, where there was a positive sell-through within the brand’s top retail partners.
Canada Goose took actions that it knew might negatively impact results, including a delay in marketing spend to H2 to support the launch of new Creative Director Haider Ackermann’s first capsule that debuts this month and a decision to limit introductions. The company, working toward a more productive and curated product assortment focused on iconic styles and best sellers, intends to launch a licensed eyewear collection with Marchon in Spring 2025.
Also, coming onboard in 2025 is a new head of merchandising, who will be charged with strengthening the brand’s long-term product strategy and working closely with Ackermann.
With H1 results largely in line with its internal forecasts and weakening consumer sentiment since delivering its initial annual outlook in May, Canada Goose has introduced a bottom range for its FY25 guidance. The annual revenue forecast range is now from a low single-digit increase to a low single-digit decrease. Wholesale revenues are still expected to fall by 20 percent year-over-year, with DTC’s results falling in the same range as in FY24.
