Canada Goose’s revenues in the fiscal third quarter ended December 29 came in below Wall Street’s estimates as DTC comps missed plan, down 6.2 percent. Earnings on an adjusted basis in the third quarter rose 7.0 percent while overall sales declined 2.2 percent.

All amounts are in Canadian dollars unless otherwise indicated.

Revenue in the quarter reached $607.9 million (U.S.$423.59 million) versus analyst’s average estimate of $620.9 million.

“Our third quarter results highlight the power of strong execution during a key consumer shopping period, particularly in December where we saw significant acceleration in the business,” said Dani Reiss, chairman and CEO of Canada Goose. “Brand momentum was robust in the quarter, amplified by the integrated global launch of our new Snow Goose collection which drove record-setting media coverage and a three-year high in brand search. Our retail execution delivered solid results despite ongoing macro challenges and, looking ahead, our focus remains on balancing operational excellence with strategic investments and strengthening the foundations that will continue driving both brand heat and commercial momentum across all our channels.”

Third Quarter Fiscal 2025 Business Highlights

Notable highlights from the company’s third quarter included the following:

  • Launched Haider Ackermann’s first capsule collection, reintroducing the brand’s Snow Goose label through a 360° campaign. 
  • As part of its brand evolution, elevated the wholesale shopping experience at Selfridges, London, launching a Polar Bears International pop-up and taking over the window displays with its Fall/Winter 24 collection.
  • Opened two concession-based shop-in-shops, bringing the total permanent store count to 74 at the end of the third quarter of fiscal 2025, strengthening its position in key markets.

Subsequent to Third Quarter Fiscal 2025

  • Launched an eyewear collection through a licensee partnership with Marchon Eyewear.
  • Appointed Judit Bankus as its new head of Merchandising.

Third Quarter Financial Highlights
(all year-over-year comparisons unless otherwise noted)

  • Total revenue decreased $2.0m to $607.9m, down 2.2 percent on a constant-currency basis.
  • DTC revenue increased 0.7 percent to $517.8m, or down 1.4 percent on a constant-currency basis with DTC comparable sales declining 6.2 percent, partially offset by sales from non-comparable stores.
  • Wholesale revenue decreased 7.5 percent to $75.7m or 8.1 percent on a constant-currency basis due to a planned lower order book as Canada Goose continued to elevate its presence within this sales channel by right-sizing our inventory position and building strong relationships with brand-aligned partners.
  • Other revenue increased $0.3m to $14.4m.
  • Gross profit increased 0.5 percent to $452.0m. Gross margin for the quarter was 74.4 percent compared to 73.7 percent in the third quarter of fiscal 2024, primarily due to pricing and lower inventory provisioning, partially offset by product mix.
  • Selling, general and administrative (SG&A) expenses were $247.7m, compared to $250.9m in the prior year period. The reduction in SG&A was primarily due to corporate expense efficiencies, including its fiscal 2024 workforce reductions, as well as non-recurrence of costs relating to the Transformation Program and foreign exchange fluctuations. This was partially offset by a planned increase in marketing spend associated with the Snow Goose campaign and an increase in store expenses such as labor related to the expansion of its global retail network.
  • Operating income was $204.3m, compared to $198.8m in the prior year period.
  • Adjusted EBIT was $205.2m, compared to $207.2m in the prior year period.
  • Net income attributable to shareholders was $139.7m, or $1.42 per diluted share, compared with a net income attributable to shareholders of $130.6m, or $1.29 per diluted share in the prior year period.
  • Adjusted net income attributable to shareholders was $148.3m, or $1.51 per diluted share, compared with an adjusted net income attributed to shareholders of $138.6m, or $1.37 per diluted share in the prior year period.

Balance Sheet Highlights

  • Inventory of $407.4m for the third quarter ended December 29, 2024, was down 15 percent year-over-year, due to a temporary reduction in production levels.
  • The company ended the third quarter of fiscal 2025 with net debt of $546.4m, compared with $587.4m at the end of the third quarter of fiscal 2024 due to higher cash balances primarily driven by working capital release this fiscal year. The company renewed its normal course issuer bid (the “NCIB”) in the third quarter of fiscal 2025, allowing the company to purchase for cancellation up to 4,556,841 subordinate voting shares over the 12-month period commencing on November 22, 2024 and ending on November 21, 2025, representing 10 percent of the “public float” determined in accordance with the requirements of the Toronto Stock Exchange as at November 8, 2024.

Fiscal 2025 Outlook.
Canada Goose is updating the fiscal 2025 guidance issued with second quarter fiscal 2025 results published on November 7, 2024, to the following:

Canada Goose’s updated outlook takes into account it DTC year-to-date performance, which fell short of expectations due to trends in global luxury consumer spending, and an increase in marketing investments in fiscal 2025, along with the following assumptions:

Images and Charts courtesy Canada Goose