Canada Goose, a leading manufacturer of performance luxury apparel, has reported a gross margin of 72.2 per cent, up 160 basis points, in the third quarter of fiscal 2023, ended January 1, 2023. The company reported a revenue of $576.7 million, down 1.6 per cent from the prior year quarter, largely due to timing of wholesale shipments and lower revenue in Mainland China related to COVID-19 disruptions.

Direct-to-consumer (DTC) revenue grew 1.5 per cent largely due to continued retail store expansion, with 51 permanent stores at the end of Q3 FY23 compared to 41 permanent stores at the end of the comparative quarter. DTC comparable sales declined 6 per cent, which included positive comparable sales growth in all geographies excluding Mainland China. The company’s wholesale revenue declined 17.3 per cent year-on-year (YoY), Canada Goose said in a press release.

Revenue in the US grew 11.3 per cent (YoY) primarily driven by higher revenues from existing stores as well as continued retail expansion. Revenue decreased in Canada and Europe, Middle East, and Africa (EMEA) due to earlier timing for wholesale shipments and lower e-commerce performance, partially offset by increased sales within existing stores. Revenue in Asia Pacific (APAC) region declined due to COVID-19 related disruptions in Mainland China.

The company’s gross profit increased by $2.6 million, primarily due to gross margin expansion. Gross margin was favourably impacted by pricing, partially offset by higher duty costs, product mix from a lower proportion of parka sales and the unfavourable impact of the fair value inventory acquisition adjustment on sales related to the Japan Joint Venture.

For fiscal 2023, Canada Goose expects total revenue of $1.175-1.195 billion compared to previous guidance of $1.200-1.300 billion provided in Q2 FY23 earnings release. Non-IFRS adjusted EBIT is expected to be $167-182 million, representing a margin of 14.2-15.3 per cent compared to previous guidance of non-IFRS adjusted EBIT $215-255 million, representing a margin of 17.9-19.6 per cent.

For the fourth quarter of fiscal 2023, the company expects total revenue of $251-$271 million and non-IFRS adjusted EBIT of $19-35 million.

Fibre2Fashion News Desk (DP)

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