Canada Goose Q1 sales increase but net loss widens

Canada Goose Holdings Inc., for the first quarter ended June 2019 reported total revenue increase of 59.1 percent to 71.1 million Canadian dollars (53.4 million dollars) or 58.6 percent on a constant currency basis. Net loss for the quarter was 29.4 million Canadian dollars (22.1 million dollars) or 0.27 Canadian dollar per basic and diluted share, compared to 18.7 million Canadian dollars or 0.17 Canadian dollar per basic and diluted share, while adjusted net loss was 22.8 million Canadian dollars (17 million dollars) or 0.21 Canadian dollar per basic and diluted share, compared to 16.7 million Canadian dollars or 0.15 Canadian dollar per basic and diluted share.

“Fiscal 2020 is off to a great start with a strong performance in our first quarter, which delivered growth in every geography. As we continue to invest in capacity, we are well positioned to capitalize on the strong demand we see across our business,” stated Dani Reiss, President & CEO in a statement. #Canada Goose reports strong performance across geographies# Header 2 The company witnessed strong growth in every geographic region, with revenue increasing by 40.4 percent in Canada, 15.8 percent in the United States and 79.7 percent in Europe and Rest of World. The company added that in Asia, revenue nearly tripled to 18.1 million Canadian dollars (13.6 million dollars) from 6.6 million Canadian dollars, which includes earlier shipments to international distributors in Japan and South Korea, and the incremental contribution of DTC operations in Greater China.

DTC revenue in the quarter increased to 34.8 million Canadian dollars (26.1 million dollars) driven by incremental revenue from five new retail stores and one new e-commerce market opened during fiscal 2019. Canada Goose said wholesale revenue increased to 36.3 million Canadian dollars (27.3 million dollars) driven by higher order values from existing partners, coupled with customer requests in Europe and Asia for earlier order shipments relative to last year. It also reflects incremental revenue from Baffin, which was acquired in November 2018.

Gross profit increased to 40.9 million Canadian dollars (30.7 million dollars), a gross margin of 57.5 percent compared to 64 percent last year. Operating loss was 27.5 million Canadian dollars (20.6 million dollars) compared to 19.9 million Canadian dollars. Adjusted EBIT was negative 25.9 million Canadian dollars (19.4 million dollars) compared to negative 17.3 million Canadian dollars.

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