Canada Goose sees double-digit growth, lifts full year guidance

By

Jennifer Braun

Published
Nov 13, 2017

Canada Goose Holdings raised its full year guidance on Thursday as it reported strong second quarter revenue growth.
 

The Canadian high-end down jackets and parkas specialist saw revenue rise 34.7 percent from $127.9 million to $172.3 million in the second quarter, ended September 30, 2017.
 
Wholesale revenue was $152.1 million as compared to $122.4 million in the second quarter, while direct-to-consumer revenue was $20.3 million as compared to $5.5 million.

Direct-to-consumer revenue was primarily driven by strong growth in their North American e-commerce business and incremental revenue from new retail stores and e-commerce sites which were not operating in the same period last year.
 
Gross profit increased to $87.1 million from $59.3 million in the second quarter of fiscal 2017.
 
“We have opened e-commerce sites in all seven of the new markets planned for fiscal 2018 and we remain on-track to have seven world-class retail destinations in operation in the third quarter of fiscal 2018, including our recently opened stores in Chicago and Tokyo. I am also encouraged by the response to our first knitwear collection which embodies our function-first design philosophy and stays true to our authentic utilitarian aesthetic,” said Dani Reiss, President & Chief Executive Officer, in a news statement.
 
In its revised outlook, Canada Goose said it now expects full year revenue growth on a percentage basis of at least 25 percent compared to the previous expectation of mid-to-high teens.
 
Annual growth in adjusted net income per diluted share is also now expected to climb at least 35 percent versus the previous expectation of approximately 20 percent.