During the second quarter (Q2) ended September 29, 2024, the company's total revenue decreased 5 percent year-on-year (y-o-y) to 267.8 million Canadian dollars (~$192.43 million) or 6 percent less in constant currency. basis, Canada Goose said in its fiscal 2025 second-quarter results.
Canada Goose reported a 5 percent year-over-year revenue decline to C$267.8 million (~$192.43 million) in Q2 FY25. Direct-to-consumer revenue decreased 5 percent and Wholesale revenue decreased 15 percent due to planned inventory adjustments. Gross margin fell to 61.3 percent. The revised guidance for FY25 forecasts a slight change in revenue, with an adjusted EBIT margin of -60 to +60 basis points.
By category, direct-to-consumer (DTC) revenue decreased 5 percent to CAD $103.9 million (~$74.66 million), or 6 percent in constant currency, and DTC comparable sales decreased 13 percent , partially offset by sales. from newer stores.
“Wholesale revenue decreased 15 percent to CAD $137.3 million or 17 percent in constant currency due to a lower planned order book as we continue to elevate our presence within the wholesale channel by right-sizing our inventory position.” and building strong relationships with partners aligned with the brand,” said the press release announcing the financial results.
Other income increased CAD $16.9 million to CAD $26.6 million (~$19.11 million).
The company's gross profit decreased 9 percent year-on-year to CAD $164.1 million (~$117.92 million) during the quarter under review. Gross margin for the quarter was 61.3 percent compared to 63.9 percent in the second quarter of fiscal 2024, primarily due to a higher proportion of non-heavy revenues within the product mix.
Operating income was CAD $1.6 million, compared to CAD $2.3 million in the prior year period. Adjusted EBIT was C$2.5 million, compared to C$15.6 million in the same period last year.
“We remain focused on providing an excellent customer experience in our DTC channel and increasing the appeal of our versatile collection through focused marketing and enhanced distribution.” Dani Reiss, President and Chief Executive Officer (CEO) Canada goosesaying.
“We believe we are well positioned for the upcoming holiday season and are excited to launch the first capsule collection from our creative director, Haider Ackermann, at the end of November. “We are confident that our plan will improve our overall business performance as we continue to build a solid foundation for long-term sustainable profitable growth,” he added.
In its revised fiscal 2025 outlook, Canada Goose now expects total revenue growth to range from a low-single-digit decline to a low-single-digit increase, in contrast to the initial low-single-digit increase. previously projected. The non-IFRS (International Financial Reporting Standards) adjusted EBIT margin is now forecast to be between -60 and +60 basis points, down from previous guidance of a 100 basis point increase. Additionally, non-IFRS adjusted net income per diluted share is now expected to see mid-single-digit growth, revised from the roughly 10 increase previously expected.
Fiber2Fashion News Desk (SG)
