Canada Goose reported earnings topped guidance in the fiscal second quarter ended October 1, but slashed its outlook for the fiscal year as sales slowed “noticeably” in September. The company said, “Increasingly challenging global macro-economic and geopolitical environments that have impacted consumer decision-making and prioritization of spend.”
All amounts are in Canadian dollars.
In the fiscal second quarter, sales of C$281.1 million (U.S.$202.5 mm) were about the midpoint of guidance in the range of C$270 million to C$290 million. Non-IFRS EBIT of C$15.6 million (U.S.$11.2 mm) exceeded guidance in the range of a loss between C$30 million to $20 million. Non-IFRS adjusted earnings of C$0.16 compared with guidance calling for a loss between C$0.24 to C$0.17.
Second Quarter Fiscal 2024 Financial Highlights
- Total revenue increased 1 percent to C$281.1 million compared to the prior-year period, down 3 percent on a constant-currency basis.
- Gross margin for the quarter expanded to 63.9 percent compared to 59.8 percent in the second quarter of fiscal 2023.
- SG&A expenses were C$177.2 million, compared to C$144.3 million in the comparable period last year.
- Operating income was C$2.3 million, compared to C$21.5 million in the second quarter of fiscal 2023.
- Adjusted EBIT was C$15.6 million, compared to C$26.3 million in the second quarter of fiscal 2023.
- Net Income attributable to shareholders was C$3.9m, or C$0.04 per basic share, compared with a net income attributable to shareholders of C$3.3 million, or C$0.03 per basic share for the second quarter of fiscal 2023.
- Adjusted net income was C$16.2 million, or C$0.16 per basic share, compared with an adjusted net income of C$20.3m, or C$0.19 per basic share for the second quarter of fiscal 2023.
For more details about the Canada Goose brand’s fall from grace amidst the slow down in the luxury space, including updated lowered guidance and CEO commentary, go here:
EXEC: Canada Goose Shares Fall to All-Time Low on Luxury Slowdown, Weak Outlook
