Canada Goose (GOOS) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue declined 5% year-over-year to $267.8 million, driven by lower DTC and planned wholesale revenue decreases amid a challenging consumer environment and a shift in marketing spend to the second half of the year.

• Net income attributable to shareholders rose to $5.4 million ($0.06 per diluted share) from $3.9 million ($0.04) in the prior year period, while adjusted net income was $5.2 million ($0.05 per diluted share), down from $16.2 million ($0.16).

• The company is executing on brand/product evolution, luxury retail execution, and operational simplification, with progress in inventory management, cost control, and retail network expansion.

• The launch of the Haider Ackermann capsule, new design studio in Paris, and expansion into eyewear mark significant brand milestones.

• Retail network expanded to 72 permanent stores, including new locations in Montreal, Wuhan, and China, and the launch of a live shopping channel on Douyin.

Financial highlights

• Q2 revenue was $267.8 million, down 5% year-over-year (6% in constant currency), with DTC revenue down 5% to $103.9 million and wholesale revenue down 15% to $137.3 million.

• Gross profit decreased 9% to $164.1 million; gross margin declined 260 bps to 61.3% due to product mix.

• Adjusted EBIT was $2.5 million, down from $15.6 million last year; adjusted EBIT margin was 0.9%, down from 5.5%.

• Adjusted net income per diluted share was $0.05, compared to $0.16 in Q2 FY24.

• Inventory at quarter-end was $473 million, down 9% year-over-year; net debt was $826 million, with 2.9x net debt leverage.

Outlook and guidance

• Fiscal 2025 revenue is expected to range from a low single-digit increase to a low single-digit decline versus fiscal 2024.

• DTC comparable sales are expected to move in a similar range; wholesale revenue is expected to decrease 20% year-over-year.

• Gross margin is expected to remain similar to the prior year; adjusted EBIT margin guidance narrowed to a range of +60 bps to -60 bps year-over-year.

• Adjusted net income per diluted share is expected to increase in the mid-single-digit range.

• Fewer new store and concession openings planned for FY25.