Dive Brief:
- Canada Goose’s first quarter net revenue increased 22.4% year over year to 107.8 million Canadian dollars (about $78 million at the time of publishing), per a company press release Thursday.
- The apparel brand’s direct-to-consumer revenue jumped about 24% and wholesale grew 12%. While gross profit improved about 26% to CA$66.2 million, Canada Goose’s operating loss grew nearly 64% to CA$158.7 million and net loss increased 70% to CA$125.5 million.
- The company did not provide forward-looking guidance. “As we see, anything can happen at any day,” CFO Neil Bowden said on a call with analysts Thursday. “So we're maintaining a bit of prudence around what the outlook is for the year.”
Dive Insight:
As the state of U.S. and Canadian trade policies continues to fluctuate, Canada Goose is steadfast in monitoring the situation.
“We continue to monitor the ongoing developments as it relates to potential new U.S. tariffs on Canadian goods as well as potential second-order impacts on the consumer,” Bowden remarked on the call.
The executive reiterated that about 75% of the brand’s inventory is manufactured in Canada and “virtually all comply with the USMCA requirements, making them currently exempt from tariffs.”
From a regional perspective, Canada Goose’s North American revenue was up 27% in Q1 led by DTC growth. Bowden noted that stores “led the way with double-digit DTC comp sales growth each month in the quarter.”
The brand is traditionally known for its cold-weather, high-end apparel, but it’s been on a journey to expand past that reputation.
In its press release Thursday, Canada Goose highlighted the release of its second Snow Goose capsule collection that featured a campaign set in the summery deserts of Utah. The latest release under creative director Haider Ackermann emphasized lightweight fabrics to reimagine classic styles from the brand.
“Newness is a new theme underpinned by the new Creative Director, Haider Ackermann, (appointed on May 2024), and we think the time is right for marketing spend in conjunction with faster and more relevant as well as lifestyle product flows,” TD Cowen analysts said in a note shared with Retail Dive on Friday.
Nonheavyweight product is key to improving sales productivity and competing with top-tier luxury brands, the analysts added.
The sentiment is shared by Canada Goose executives.
“When you look at the apparel growth that we've seen, we're a brand that is known for warmth,” Brand and Commercial President Carrie Baker said on the call with analysts. “And outside of winter, we're just really not known as that brand, but this campaign, the collection really challenge that perception and people responded to it.”
