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 strategic brand elevation efforts.

• Marketing spend was shifted to the second half to support the Haider Ackermann capsule launch, impacting Q2 but expected to benefit H2 results.

• The company is focused on brand and product evolution, luxury retail execution, and operational simplification.

• Despite near-term headwinds, October sales and early peak season data show improvement, especially in Mainland China and EMEA.

• Net income attributable to shareholders rose to $5.4M ($0.06 per diluted share) from $3.9M ($0.04) in the prior year period.

Financial highlights

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

• Adjusted EBIT was $2.5M, down from $15.6M last year; adjusted net income was $5.2M ($0.05 per share) vs. $16.2M ($0.16) last year.

• Net income attributable to shareholders was $5.4M, up from $3.9M in Q2 FY24.

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

• Other revenue rose to $26.6M, driven by inventory exit strategies and knitwear facility contributions.

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 and gross margin are expected to be similar to last year; wholesale revenue is expected to decrease 20% year-over-year.

• Adjusted EBIT margin guidance narrowed to a range of +60 bps to -60 bps year-over-year, reflecting increased marketing investment and regional mix.

• 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.