Canada Goose posts revenue surge of 6% in Q3 FY24

02 Feb '24

2 min read

Pic: Robert - stock.adobe.com

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Canada Goose reported a 6 per cent revenue rise in Q3 FY24 to $609.9 million, driven by a 14 per cent increase in DTC sales.
Asia Pacific shined with 62 per cent growth, while wholesale and North American sales declined.
Gross profit was up 8 per cent to $449.7 million, with a net income of $130.6 million.
Inventory levels remained stable at $478.4 million.

Canada Goose, a global performance luxury and lifestyle brand, has reported a 6 per cent increase in total revenue for the third quarter (Q3) of fiscal 2024 (FY24), reaching $609.9 million compared to the same period last year. This growth is largely attributed to a robust 14 per cent rise in direct-to-consumer (DTC) revenue, which hit $514.0 million, reflecting a significant uptick in in-store retail sales.

DTC channels now constitute 84 per cent of the total revenue mix, up from 78 per cent in the previous year, although DTC comparable sales saw a slight decline of 1.6 per cent year-over-year (YoY). Wholesale revenue experienced a downturn, dropping by 28 per cent (or 30 per cent on a constant currency basis) compared to the prior year, the company said in a press release.

The Asia Pacific region emerged as a standout performer, with revenue soaring by 62 per cent YoY across all channels, showcasing the brand's expanding footprint in this vital market. However, sales in the Europe, Middle East, and Africa (EMEA) and North America regions faced challenges, decreasing by 26 per cent and 14 per cent, respectively.

The luxury outerwear maker also reported an 8 per cent increase in gross profit, reaching $449.7 million, with the gross margin for the quarter expanding to 73.7 per cent from 72.2 per cent in the third quarter of fiscal 2023. Selling, general, and administrative expenses rose to $250.9 million from $225.7 million in the prior year period.

Operating income for the quarter was $198.8 million, up from $190.7 million in the prior year, while adjusted EBIT increased to $207.2 million from $197.1 million. Net income attributable to shareholders was slightly lower at $130.6 million, or $1.29 per diluted share, compared to $134.9 million, or $1.28 per diluted share in the prior year. Adjusted net income to shareholders improved to $138.6 million, or $1.37 per diluted share, from $134.5 million, or $1.27 per diluted share.

Inventory levels remained stable, with $478.4 million reported for the quarter ending December 31, 2023, showcasing efficient inventory management amidst fluctuating market conditions.

Fibre2Fashion News Desk (DP)

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