For the first quarter, Canada Goose Holdings Inc. reported global ecommerce revenue increase of 80.8 percent, while the company’s total revenue rose to 56.3 million Canadian dollars compared to 26.1 million Canadian dollars.
Commenting on the results, Dani Reiss, the company’s president & CEO said: “Our digital business continued at a rapid pace of growth globally, alongside improving retail trends. With strong momentum in a less disrupted operating environment, and an exciting product pipeline - including our growing apparel business and footwear launch later this fall - we are well positioned for fiscal 2022.”
Review of Q1 financial performance of Canada Goose
The company said in a statement that revenue increased significantly in all geographic regions. Despite elevated retail closures, Canada grew by 126.1 percent, excluding 7 million Canadian dollars of temporary PPE sales in the comparative quarter.
The company’s DTC revenue in Mainland China increased by 188.7 percent. Canada Goose said, total DTC revenue was 29.4 million Canadian dollars compared to 10.4 million Canadian dollars, which was driven by a lower level of Covid-19 disruptions, e-commerce growth and new retail expansion, despite continued store traffic headwinds.
The company added that wholesale revenue was 25.8 million Canadian dollars compared to 8.7 million Canadian dollars as a result of higher volume of shipments to wholesale and international distributor partners, driven by a lower level of Covid-19 disruptions.
Other revenue was 1.1 million Canadian dollars from 7 million Canadian dollars. The decrease was attributable to PPE sales in the comparative quarter, which were temporarily manufactured in support of Covid-19 response efforts.
Canada Goose reports Q1 net loss of 56.7 million Canadian dollars
Gross profit was 30.7 million Canadian dollars and gross margin was 54.5 percent compared to 4.8 million Canadian dollars and 18.4 percent, respectively. Operating loss was 60.7 million Canadian dollars compared to 59.3 million Canadian dollars.
The company reported net loss of 56.7 million Canadian dollars or loss of 0.51 Canadian dollars per diluted share compared to 50.1 million Canadian dollars or 0.46 Canadian dollars per diluted share.
Non-IFRS adjusted EBIT was negative 60.2 million Canadian dollars compared to 46.5 million Canadian dollars. Non-IFRS adjusted net loss was 50 million Canadian dollars or 0.45 Canadian dollars per diluted share compared to negative 38.4 million Canadian dollars or 0.35 Canadian dollars per diluted share.
Reiterating the fiscal 2022 outlook, the company said, for the second quarter, Canada Goose assumes low double digit Wholesale revenue growth, and DTC revenue at roughly one and a half times last year’s level.