Canada Goose Holdings (GOOS -1.29%), the Canadian luxury apparel brand, delivered impressive results for its fiscal 2024 fourth quarter on May 16. For the period, which ended March 31, the company reported revenue of 358 million Canadian dollars against a consensus estimate of CA$233 million, outperforming by 53%. Adjusted earnings per share (EPS) came in at CA$0.19, significantly exceeding the CA$0.14 forecast by analysts. For the full fiscal year, Canada Goose's revenue hit CA$1.33 billion, a 9.6% increase over fiscal 2023.
| Metric | Fiscal Q4 2024 | Fiscal Q4 2024 Analysts Estimate | Fiscal Q4 2023 | % Change |
|---|---|---|---|---|
| Revenue | CA$358 million | CA$233 million | CA$293 million | 22.1% |
| Adjusted EPS | CA$0.19 | CA$0.14 | CA$0.13 | 46.2% |
| Gross profit | CA$233 million | N/A | CA$190 million | 22.4% |
| SG&A expenses | CA$210 million | N/A | CA$173 million | 21.5% |
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Data sources: Company results from company. Analyst estimates from FactSet. SG&A = selling, general, and administrative. |
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Canada Goose Holdings: A quick business overview
Canada Goose Holdings, established in 1957 and headquartered in Toronto, is renowned for its high-end outdoor clothing, particularly its winter parkas. Beyond heavyweight jackets, its offerings now span the lightweight down, knitwear, and footwear categories.
Recently, the company has concentrated on product diversification and geographic expansion.
Quarterly highlights
Canada Goose's Q4 performance showcased strong retail demand, especially in its robust direct-to-consumer (DTC) segment. Geographically, growth was observed in the key Asia Pacific market, particularly Greater China, where revenues grew by 32% on a constant-currency basis.
Segment performance included:
- DTC revenue: CA$271 million, up 19% year over year.
- Wholesale revenue: CA$41 million, a 9% decline due to a planned reduction in the order book.
- Other revenue: CA$45 million, a 123% increase driven by Friends & Family sales events.
Gross profit rose 22% to CA$233 million with a gross margin of 65.1%. Selling, general, and administrative expenses rose 21.6% to CA$210 million, primarily due to retail network expansion and non-recurring costs related to the company's transformation program.
Geographically, revenues in North America grew by 24.5% to CA$153 million. In the Asia Pacific market, revenues surged by 29.6% to CA$148 million, while the Europe/Middle East/Africa segment reported moderate growth of 1.6%. Performance in Greater China was particularly noteworthy, with a year-over-year revenue increase of 32% on a constant-currency basis.
Product-wise, the non-heavyweight down category comprised 46% of total revenue, up from 43% in fiscal 2023. Notable new launches include luxury knitwear and Glacier Trail Sneakers, enhancing the brand's seasonal appeal and reducing its dependency on winter-centric products.
Looking ahead
Management anticipates low single-digit percentage revenue growth for fiscal 2025. While the DTC segment's comparable sales growth is expected to be in the low-single-digit percentages, wholesale revenue is forecast to decrease by 20% due to the company's strategic shift toward the DTC channel.
The company's gross margin is projected to remain stable, while it anticipates that its adjusted EBIT margin may expand by roughly 100 basis points. Adjusted net income per diluted share is forecast to grow by a mid-teens percentage. However, due to ongoing economic uncertainties, the company withdrew its long-term financial targets, and it's putting its focus on near-term operational execution.
