Canada Goose posts strong Q2 growth in China

Canada Goose Holdings Inc. , for the second quarter recorded total revenue of 194.8 million Canadian dollars from 294 million Canadian dollars. The company said, DTC revenue dropped to 46.2 million Canadian dollars compared to 74.2 million Canadian dollars driven by lower retail traffic due to Covid-19 disruptions globally. Revenue generated through e-commerce was higher than the comparative quarter. DTC revenue in Mainland China increased by over 30 percent, while global e-commerce revenue increased by over 10 percent, with an acceleration of growth in September.

“We have accelerated our best strategic opportunities in today’s environment. Mainland China has already returned to growth and our digital business is accelerating in a meaningful way at the right time,” said Dani Reiss, the company’s President & CEO.

Wholesale revenue decreased to 118.5 million Canadian dollars as a result of the continued impact of Covid-19 including the significant reduction in the planned order book and requests from partners and international distributors for later shipment timing relative to the comparative quarter. Other revenue increased to 30.1 million Canadian dollars driven by PPE sales in support of Covid-19 response efforts.

The company added that adjusted EBIT margin was positive for the first time since the onset of the pandemic, despite significant revenue disruptions. Gross profit was 94.2 million Canadian dollars, a gross margin of 48.4 percent, compared to 160.4 million Canadian dollars and 54.6 percent. Operating income was 15.1 million Canadian dollars, an operating margin of 7.8 percent compared to 75.4 million Canadian dollars and an operating margin of 25.6 percent.

Picture:Facebook/Canada Goose