During the second quarter (Q2) ended September 29, 2024, the total revenue of the company decreased by 5 per cent year-on-year (y-o-y) to CAD $267.8 million (~$192.43 million) or down 6 per cent on a constant currency basis, Canada Goose said in its Q2 fiscal 2025 results.
Canada Goose has reported a 5 per cent YoY revenue drop to CAD $267.8 million (~$192.43 million) in Q2 FY25.
Direct-to-consumer revenue declined 5 per cent, and wholesale revenue decreased 15 per cent due to planned inventory adjustments.
Gross margin fell to 61.3 per cent.
Revised FY25 guidance forecasts a slight revenue change, with adjusted EBIT margin at -60 to +60 basis points.
Category-wise, direct-to-consumer (DTC) revenue decreased 5 per cent to CAD $103.9 million (~$74.66 million), or 6 per cent on a constant currency basis, with DTC comparable sales declining 13 per cent, partially offset by sales from newer stores.
“Wholesale revenue decreased 15 per cent to CAD $137.3 million or 17 per cent on a constant currency basis due to a planned lower order book as we continue to elevate our presence within the wholesale channel by right-sizing our inventory position and building strong relationships with brand-aligned partners,” the press release announcing the financial results said.
Other revenue increased CAD $16.9 million to reach CAD $26.6 million (~$19.11 million).
Gross profit of the company decreased by 9 per cent y-o-y to CAD $164.1 million (~$117.92 million) during the quarter under discussion. Gross margin for the quarter was 61.3 per cent compared to 63.9 per cent in the second quarter of fiscal 2024 primarily due to a higher proportion of non-heavyweight down revenue within the product mix.
Operating income was CAD $1.6 million, compared to CAD $2.3 million in the prior year period. Adjusted EBIT was CAD $2.5 million, compared to CAD $15.6 million in the prior year period.
“We remain focused on delivering an outstanding customer experience in our DTC channel and increasing desirability for our versatile collection through focused marketing and improved distribution,” Dani Reiss, chairman and chief executive officer (CEO) of Canada Goose, said.
“We believe we are well positioned for the upcoming holiday season and are excited to bring the first capsule collection from our Creative Director, Haider Ackermann, to market at the end of November. We are confident that our plan will improve our overall business performance as we continue build a strong foundation for sustainable, long-term profitable growth,” he added.
In its revised fiscal 2025 outlook, Canada Goose is now expecting total revenue growth to range from a low-single-digit decrease to a low-single-digit increase, in contrast to the initial low-single-digit increase projected earlier. The non-IFRS (International Financial Reporting Standards) adjusted EBIT margin is now forecast to be between -60 and +60 basis points, down from the prior guidance of a 100-basis point increase. Additionally, non-IFRS adjusted net income per diluted share is now anticipated to see mid-single-digit growth, revised from the previously expected mid-teens increase.
Fibre2Fashion News Desk (SG)