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, despite a planned 41% decline in wholesale revenue.

• Mainland China and Japan delivered strong DTC results, while North America and EMEA faced softer trends due to macroeconomic pressures and lower e-commerce sales.

• The company is executing on brand/product evolution, best-in-class retail execution, and operational simplicity.

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

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

Financial highlights

• DTC sales 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 and product mix and fixed costs from the new European facility.

• Adjusted EBIT loss widened to $96 million from $91.1 million last year; adjusted net loss was $76.1 million ($0.79/share).

• Inventory was $484.3 million, down 7% year-over-year, with inventory turns up 6%.

• Net debt stood at $765.9 million, with net debt leverage at 2.8x Adjusted EBITDA.

Outlook and guidance

• FY2025 guidance maintained, expecting low single-digit revenue growth, gross margin similar to FY2024, and wholesale revenue to decrease 20% year-over-year.

• DTC comp sales expected to turn positive during peak season, with incremental revenue from new stores and shop-in-shops.

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

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