- Prachi Singh |
Total first quarter revenue at Canada Goose Holdings Inc. was 26.1 million Canadian dollars compared to 71.1 million Canadian dollars in the same quarter last year. The company said in a statement that DTC revenue decreased to 10.4 million Canadian dollars from 34.8 million Canadian dollars, driven by temporary store closures and reduced store hours due to Covid-19 disruptions globally. Wholesale revenue was 8.7 million Canadian dollars from 35.6 million Canadian dollars, as a result of a significant reduction in shipments due to Covid-19 disruptions to partner operations. Other revenue was 7 million Canadian dollars compared to 0.7 million Canadian dollars due to PPE sales.
“Adversity demands change, drives innovation and reveals winners. For Canada Goose, that has never been more true than today, as we begin to see signs of recovery around the world, heading into our most important season,” said Dani Reiss, the company’s President & CEO.
Highlights of Canada Goose’s first quarter results
The company added that gross profit was 4.8 million Canadian dollars, a gross margin of 18.4 percent compared to 40.9 million Canadian dollars and 57.5 percent. Operating loss for the quarter was 59.3 million Canadian dollars, an operating margin of negative 227.2 percent compared to loss of 27.5 million Canadian dollars and negative 38.7 percent.
Canada Goose said, net loss was 50.1 million Canadian dollars or loss of 0.46 Canadian dollar per diluted share compared to loss of 29.4 million Canadian dollars or negative 0.27 Canadian dollar per diluted share. Adjusted EBIT was negative 46.5 million Canadian dollars compared to negative 25.9 million Canadian dollars, while adjusted net loss was 38.4 million Canadian dollars or negative 0.35 dollar per diluted share compared to negative 22.8 million Canadian dollars or negative 0.21 Canadian dollar per diluted share.
Commenting on the outlook, the company said, while there has been a gradual sequential improvement in performance, the negative financial impacts of Covid-19 have continued in the second quarter of fiscal 2021, with a significant revenue decline expected.
In the wholesale channel, which represented 74.2 percent of sales in the second quarter of fiscal 2020, shipments to partners continue to be materially lower as they restart their retail operations. On an annual basis, the Company expects lower wholesale revenue, and later shipment timing, relative to fiscal 2020. In the DTC channel, consistent with earlier experiences in Greater China, the company added, reopened retail stores globally have had slow starts, with traffic considerably lower than in the comparative quarter.