Canada Goose, the winter clothing manufacturer, has reported a widened loss in its first fiscal quarter. However, despite the loss, the company has exceeded revenue expectations, propelled by higher retail sales in North America and Asia.
Loss and Revenue Figures
For the three-month period ending on July 2, Canada Goose saw a net loss of 85 million Canadian dollars ($63.7 million), or C$0.78 per share. This represents an increase in loss compared to the same period last year when the company reported a loss of C$63.6 million, or C$0.59 per share.
On an adjusted basis, the loss also widened to C$0.70 per share. But according to analysts polled on FactSet, the consensus was for an even wider loss of C$0.85 per share.
Despite the increased loss, total revenue for the quarter grew by over 21% to C$84.8 million, surpassing analyst expectations of a more modest rise to C$74.7 million. The growth in revenue can be attributed to a significant 60% increase in the company’s direct-to-customer segment, which generated C$55.8 million in revenue. However, wholesale revenue experienced a decline of 18% to C$27.1 million.
North America emerged as the largest contributing region to Canada Goose’s revenue, with a 24% growth to C$41.6 million. Meanwhile, Asia Pacific demonstrated substantial growth of 52.5%, generating C$24.5 million in revenue.
Factors Impacting Results
The company faced higher sales, general, and administrative costs during this quarter, amounting to C$154.9 million, compared to C$124.9 million in the previous year. However, these increased costs were primarily allocated to the company’s transformation program, aimed at enhancing long-term operational efficiency, as well as the opening of new stores.
Canada Goose’s financial performance in the first fiscal quarter of the year demonstrates impressive revenue growth, driven by strong retail sales in key regions.