Canada Goose' revenue up 31.4% in Q4 FY23, driven by Asia Pacific & EM

The direct-to-consumer (DTC) revenue stream also showed significant progress in Q4 FY23, with a 22.6 per cent YoY growth rate, due largely to the company's ongoing retail store expansion strategy and improved performance within the existing store network. By the end of Q4 FY23, Canada Goose had a network of 51 permanent stores, a significant increase from the 41 stores operating at the end of the comparable quarter. Despite a downturn in the e-commerce business, the company still managed a 6.9 per cent growth in DTC comparable sales, Canada Goose said in its financial results for the fourth quarter ended April 2, 2023.

In the wholesale segment, revenue jumped 30.4 per cent YoY in Q4 FY23, which the company attributes to an increase in global order value and a surge in the volume of shipments realised in Q4 FY23, compared to the same period last year. Canada Goose also reported a rise in other revenues to $20.2 million.

On the flip side, while the gross profit increased by $36.2 million to $190.3 million in Q4 FY23 due to higher revenues, it was partly offset by lower gross margins.

The operating income for the company saw an increase, reaching $17.2 million, primarily driven by higher gross profit. Meanwhile, the adjusted EBIT also rose to $27.6 million.

However, the company reported a higher net loss than the comparative quarter, primarily due to increased net interest, finance, and other costs, along with higher income tax expense. This was only partially offset by the higher operating income. Nonetheless, the adjusted net income for the quarter was higher than the previous year, thanks to increased operating income, albeit partially offset by a higher income tax expense.

“I am pleased with our fourth quarter results, particularly the strong revenue results generated in Greater China and EMEA,” said Dani Reiss, chairman and CEO. “This is a testament to the strength of the brand and this momentum has continued alongside early encouraging results in North America in fiscal 2024 year to date. Lastly, I am excited by the progress our global teams have made in advancing our strategic growth pillars—to accelerate consumer focused growth, build out DTC, and create new and expand product categories, rapidly. We remain confident in our ability to execute and leverage these pillars, and we continue to build our brand strength to generate profitable growth sustainable over the long term.”

Fibre2Fashion News Desk (DP)