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Canada Goose lowers guidance despite revenue rise

Sophie Smith
04 November 2022

Canada Goose has reported a 19% increase in revenue to £181.2 million ($277.2 million) for the second quarter ending 2 October 2022. 

Direct-to-consumer revenue increased 15.6% to £61.9 million ($94.8 million), driven by continued retail expansion. Wholesale revenue was up 21.2% to £118.1 million ($180.7 million).

Revenue grew in all geographies except Asia Pacific. Canada, the US and EMEA continued to experience increased sales within existing stores and also benefited from wholesale growth. EMEA experienced an "even larger" increase in wholesale, compared to the other regions.

Gross profit increased by 22.8% to £108.5 million ($165.8 million) and gross margin by 180 basis points. The total gross margin was favourably impacted by pricing and lower product costs driven by increased production efficiencies.

Operating income declined, due to foreign exchange fluctuations, higher costs related to retail expansion and investments in strategic initiatives, partially offset by higher gross profit and the timing of marketing spend.

Canada Goose has now lowered its guidance for FY23, reflecting uncertainty from the macro-economic and political environment. The company now expects total revenue of £784-850 million ($1.2- $1.3 billion), compared to its original guidance of £850-915 million ($1.3-$1.4 billion).

Dani Reiss, Chairman and CEO of Canada Goose, said: “Given the extent of Covid disruptions in Mainland China, as well as an uncertain global macroeconomic backdrop, we have revised our fiscal 2023 outlook. We will continue to leverage our competitive strengths and remain focused on the things we can control, including disciplined investment spend.

"We remain confident in our brand strength and see a long runway ahead to drive profitable growth by increasing our direct-to-consumer mix, expanding our penetration in key markets, and expanding our product offerings.”

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