Canadian luxury outerwear company, Canada Goose, has announced a significant increase in total revenue for the first quarter of fiscal 2024. The company reported a 21% rise in revenue to $84.8 million, with an 18% growth on a constant currency basis compared to the previous year. This increase was mainly driven by a surge in in-store retail sales, resulting in a 60% growth in direct-to-consumer (DTC) sales. As a result, DTC channels accounted for 66% of the total revenue, a notable increase from 50% in the same period last year. Furthermore, DTC comparable sales also saw a year-on-year increase of 28%.

Although the company experienced strong revenue growth, wholesale revenue saw a decline of 18%, or 19% on a constant currency basis. This decrease was primarily due to a drop in the EMEA region, which was offset partially by the boost in DTC sales. Geographically, North America witnessed a 24% revenue growth, while the Asia Pacific region saw a substantial increase of 52%. On the other hand, the EMEA region experienced a 7% decrease in revenue.

Gross profit also showed improvement, growing by 29% to $55.2 million. Additionally, the gross margin expanded to 65.1% compared to 61.1% in the first quarter of fiscal 2023. However, the company’s operating loss increased to $99.7 million, compared to $82.2 million in the same period last year. The adjusted EBIT was reported to be minus $91.1 million, indicating a wider loss compared to minus $75.9 million in the previous year. In terms of net loss, the company reported a loss of $85 million, or $0.78 per basic share, compared to a loss of $63.6 million, or $0.59 per basic share in the first quarter of fiscal 2023. The adjusted net loss was $73.1 million, compared to $58.8 million in the previous year.

Despite the increase in losses, Chairman and CEO Dani Reiss remains optimistic about the company’s performance. Reiss stated, “We had a strong start to the year, with first quarter results reflecting solid demand for our brand, especially as more customers shop directly with us.” Reiss emphasized the company’s focus on growth pillars to drive long-term results. Canada Goose expanded its global retail network by adding three new permanent stores to its portfolio during the quarter. These stores include locations in Dublin, Ireland, Las Vegas, Nevada, and Bellevue, Washington. This brings the total permanent store count to 54, with an additional store opening in July at the Beverly Center in Los Angeles.

Overall, Canada Goose’s first quarter results highlight the strong demand for the brand and the success of its direct-to-consumer channels. Despite challenges in wholesale revenue and increased losses, the company remains committed to its long-term growth strategy and continues to expand its retail presence on a global scale.