Canada Goose, a renowned luxury apparel manufacturer, has announced impressive sales growth in the first quarter of fiscal year 2021. The company achieved sales of C$56.3 million in Q1, doubling the figure from the same period last year. The primary driver behind this growth was the surge in direct-to-consumer (DTC) revenue, which reached C$29.4 million compared to C$10.4 million in the previous year. Several factors contributed to this increase, including fewer disruptions caused by the COVID-19 pandemic, strong e-commerce growth, and expanded retail operations. Despite challenges in in-store foot traffic, Canada Goose has witnessed positive trends in its digital business and improving retail performance.

During the first quarter, Canada Goose experienced a substantial 80.8% increase in global e-commerce revenue. Despite temporary store closures in various regions, all geographic segments saw significant revenue growth. In Canada, DTC revenue increased by an impressive 126.1%, while China experienced an astounding 188.7% growth in DTC revenue.

In terms of financials, Canada Goose reported a gross profit of C$30.7 million for the three-month period, up from C$4.8 million in the previous year. Operating losses for the quarter stood at C$60.7 million, only slightly higher than the C$59.3 million reported in the same period last year. The company’s net loss also widened to $56.7 million from $50.1 million.

Additionally, Canada Goose witnessed a growth in wholesale revenue, reaching C$25.8 million compared to C$8.7 million in the previous year. The increase in wholesale revenue was attributed to higher shipment volumes to wholesale and international distributor partners. However, other revenue sources, particularly personal protective equipment (PPE) sales, declined to C$1.1 million compared to C$7 million in Q1 of fiscal year 2021.

Looking ahead, Canada Goose is optimistic about its prospects for fiscal year 2022. Dani Reiss, the President and CEO, expressed confidence in the company’s current trajectory, emphasizing a less disrupted operating environment and an exciting product pipeline. In addition to its successful apparel business, Canada Goose is set to launch its footwear line in the upcoming fall season.

Overall, Canada Goose’s strong performance in the first quarter, driven by robust DTC sales, e-commerce growth, and new retail expansion, reflects the company’s resilience and adaptability in navigating challenging market conditions. With a promising outlook for the future, Canada Goose is well-positioned to capitalize on opportunities and maintain its position as a leading manufacturer of luxury performance apparel.

Useful links:
1. Canada Goose official website
2. Canada Goose stock information on Bloomberg