Canada Goose (GOOS) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue rose 4% year-over-year to $88.1 million, driven by DTC growth, strong Asia Pacific performance, and operational efficiencies, while wholesale declined as planned.

• Mainland China and Japan led DTC gains, while North America and EMEA faced softer trends.

• The company is focused on brand/product evolution, retail execution, and operational simplicity.

• Haider Ackermann was appointed as the first Creative Director, launching new collections and campaigns.

• Sustainability progress included a 6% reduction in Scope 1 and 2 emissions and 80% responsible material sourcing.

Financial highlights

• DTC revenue grew 13% year-over-year to $63.1 million, offsetting a 41% decline in wholesale revenue to $16.0 million.

• Gross margin declined 540 bps to 59.7%, mainly due to channel/product mix and fixed costs from the new European facility.

• Adjusted EBIT loss was $96 million; adjusted net loss was $76.1 million ($0.79/share).

• Inventory was $484.3 million, down 7% year-over-year, with improved inventory turns.

• Net debt stood at $765.9 million as of June 30, 2024.

Outlook and guidance

• FY2025 guidance is maintained, expecting low single-digit revenue growth and gross margin similar to FY2024.

• Wholesale revenue is expected to decrease 20% year-over-year for the full year.

• DTC comp sales are expected to improve and drive low single-digit growth, with new stores and shop-in-shops contributing.

• Adjusted EBIT margin is projected to expand by approximately 100 basis points.

• Outlook assumes continued global consumer pressure from high interest rates and geopolitical uncertainty.