Canada Goose Q1 Revenue Plunges 63%, Losses Widen

Extreme outerwear brand Canada Goose saw revenue fall sharply by 63% and losses widen, according to yesterday’s report for the first fiscal quarter.

Total revenue for the Toronto-based company was $26.1 million (Canadian) for the three months ended June 28, 2020, down from $71.1 million (Canadian) for the same period a year ago. Losses widened to $50.1 million (Canadian) compared to losses of $29.4 (Canadian) in the year-ago period. One Canadian dollar is currently valued at 75 cents in the United States.

Canada Goose is known for its pricey parkas—upward of $1,000 U.S.—and signature red-rimmed shoulder patch.

Results were driven in large part by Covid-19 related reduced shipments and store closings.

Among the Q1 highlights reported by Canada Goose Tuesday:

• Direct-to-consumer revenue was $10.4 million (Canadian) for the most recent quarter, down from $34.8 million (Canadian) for the comparable period a year ago.
• Wholesale revenue fell to $8.7 million (Canadian) from $35.6 million (Canadian) last year.
• 21 of Canada Goose’s 22 global stores are now open with enhanced cleaning protocols, reduced occupancy and operating hours.
• The first of four new stores planned in Mainland China opened in June in Chengdu and that location is performing “ahead of expectations.”
• Manufacture of down-filled jackets has restarted with plans to produce about one-third the volume produced last year.

“Adversity demands change, drives innovation and reveals winners. For Canada Goose, that has never been more true than today, as we begin to see signs of recovery around the world, heading into our most important season,” president and CEO Dani Reiss said in a statement. “Where we face uncertainty, we have practiced discipline and flexibility, and where we see opportunity, we have accelerated our strategic plans.”

Canada Goose’s strategic plans include increased investment in its digital capacity such as launch of mobile omnichannel capabilities in U.S. stores and a cross-border solution to expand access to customers in other countries.

The company did not provide an outlook for the full year based on uncertainty driven by the pandemic and potential for second-wave outbreaks.