Canada Goose Exceeds Q1 Revenue Estimates with Strong Direct-to-Consumer Performance

Canada Goose Holdings Inc. reported Q1 revenue of $107.8 million, exceeding the market forecast of $91.56 million. The company attributed its success to strategic initiatives and compelling brand storytelling. CEO Dani Reiss expressed confidence in maintaining momentum through enhanced direct-to-consumer performance and a focused approach to business operations.

Canada Goose Holdings Inc. (GOOS) reported its first-quarter (Q1) financial results, with revenue of $107.8 million, surpassing market expectations of $91.56 million [2]. The company attributed its strong performance to strategic initiatives and compelling brand storytelling. CEO Dani Reiss expressed confidence in maintaining momentum through enhanced direct-to-consumer performance and a focused approach to business operations.

Revenue grew by 22.4% year-over-year (YoY), driven by a 23.8% increase in direct-to-consumer (DTC) revenue to $78.1 million and a 11.9% increase in wholesale revenue to $17.9 million [3]. The company's operating loss increased to $158.7 million, compared to $96.9 million in the same period last year, primarily due to a one-time financial award of $43.8 million (32.0m USD) resulting from the resolution of an arbitration with a former supplier [3].

Despite the net loss of $125.5 million, Canada Goose's gross profit increased by 25.9% to $66.2 million, with a gross margin of 61.4% compared to 59.7% in the prior year period [3]. The company's inventory decreased by 9% to $439.5 million, reflecting higher demand and proactive inventory management [3].

Canada Goose's strong Q1 performance was driven by the launch of its Spring-Summer 2025 collection and the second Snow Goose capsule, which featured celebrity guests and influencers [3]. The company also expanded its retail presence, converting two temporary stores into permanent locations and renovating its Amsterdam store [3].

The company's sustainability efforts continued, with a 9% reduction in Scope 1 emissions and a 25% reduction in Scope 3 emissions year-over-year, and investments in 10 renewable energy projects to fully match its Scope 2 emissions in fiscal 2025 [3].

Investors should monitor the company's earnings outlook and estimate revisions, as well as the broader retail apparel and shoes industry outlook, for potential impacts on the stock's performance [1]. The Zacks Rank for Canada Goose is currently #4 (Sell), indicating that the stock is expected to underperform the market in the near future [1].

References:
[1] https://www.nasdaq.com/articles/canada-goose-goos-reports-q1-loss-beats-revenue-estimates
[2] https://www.nsnews.com/the-mix/canada-goose-reports-first-quarter-loss-of-1255m-despite-revenue-increase-11016336
[3] https://finance.yahoo.com/news/canada-goose-reports-first-quarter-104500811.html