In the reported period, the wholesale revenue improved to $399.2 million from $336.2 million. This was driven by higher order values from existing partners. Incremental revenue from Baffin, which was acquired in November 2018, and favourable foreign exchange fluctuations also contributed positively.
DTC revenue increased to $431.3 million from $255.0 million, representing 51.9 per cent of total revenue compared to 43.1 per cent. The increase was primarily attributable to incremental revenue from five new retail stores and one new e-commerce market. This was complemented by strong performances from established e-commerce markets and retail stores.
Gross profit scaled to $516.8 million, a gross margin of 62.2 per cent, compared to $347.6 million, a gross margin of 58.8 per cent. The increase in gross margin was driven by a greater proportion of DTC revenue, and to a lesser degree, incremental gross margin expansion at the respective channel levels.
There was global footprint of 11 directly-operated retail stores and 12 national e-commerce markets increased DTC sales to over half of total revenue at 51.9 per cent.
"I am extremely proud of Canada Goose’s many strategic accomplishments in fiscal 2019. We entered the year with a very ambitious agenda of global growth, and we have surpassed it with flying colours,” said Dani Reiss, president and CEO. “We have come a long way in a short time and we have done it the right way - by preserving the purity of our brand and building for the future. Our business and our people have never been stronger. I believe that we are still just scratching the surface of our long-term potential as we continue to define performance luxury globally.”
For fiscal 2020, Canada Goose expects annual revenue growth of at least 20 per cent, wholesale revenue growth in the high-single-digits on a percentage basis. Eight new retail stores are likely to be in operation by the end of the winter selling season. (RR)
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