Canada Goose reveals sales growth but lowers FY22 expectations

Canada Goose has released its Q3 financial results, revealing a 26.5% increase in revenue to £339 million ($586 million).

For the third quarter ending 2 January 2022, Canada Goose's total non-parka revenue increased by 74.9%, reflecting the brand's growing year-round lifestyle relevance.

DTC revenue totalled £258 million ($445.4 million), driven by higher sales from existing retail stores, ecommerce growth and retail expansion. Wholesale revenue reached over £79,000 ($136.7 million), dropping from £93,000 ($160.8 million) in the year previous. The decrease was a result of earlier order shipment timing relative to fiscal 2021, driven by wholesale partner requests.

Gross profit was £239 million ($413.8 million), a gross margin of 70.6%, compared to £183 million ($316.4 million) in 2021. Net income totalled £88,000 ($151.9 million).

Due to lower than expected revenue and retail traffic in APAC and EMEA in the current quarter, alongside new variant outbreaks and restrictions, Canada Goose has confirmed it will lower its outlook for fiscal 2022. The company now expects a total revenue of between £631 million and £640 million, a reduction from the previously expected £651 million to £680 million.

Dani Reiss, President and CEO at Canada Goose, said: “Canada Goose’s brand momentum and supply chain resilience drove a strong performance in our largest quarter. Our digital business continued to exceed last year’s outsized gains, alongside a sharp improvement in retail productivity. We remain confident in our long-term trajectory for revenue growth and margin expansion, notwithstanding the emergence of temporary and unexpected COVID-19 disruptions in certain markets.”