Canadian outdoor apparel specialist Canada Goose has upped its full-year guidance after what it called “stronger than expected” growth across the business in the second quarter.
For the three months to 30 September, Canada Goose saw net income rise 1.9% to CAD37.1m (US$29.2m) from CAD20m in the year-ago period, while gross margin widened to 50.5%, compared to 46.4% last year.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Total revenue increased by CAD44.4m from CAD127.9m to CAD172.3m million in the period, representing year-over-year growth of 34.7%.
Meanwhile, wholesale revenues in the quarter were CAD152.1m as compared to CAD122.4m last year, driven by growth across all regions.
Direct-to-consumer revenue reached CAD20.3m, compared to CAD5.5m in the prior-year period, driven by strong growth in the North American e-commerce business and incremental revenue from new retail stores and e-commerce sites which were not operating in the same period last year.
“Our performance reflects the power of our brand around the world and our disciplined approach to executing our growth strategies,” said CEO Dani Reiss. “With strong results across channels, geographies and categories, we continue to drive awareness and penetration while inspiring those who already know and love our brand. Most importantly, we remain deeply committed to building an enduring brand for the long term.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataReiss added he is also encouraged by the response to the company’s first knitwear collection which he said embodies Canada Goose’s function-first design philosophy and “stays true to our authentic utilitarian aesthetic”.
Looking ahead, the company said it expects fiscal 2018 results to exceed the long-term and fiscal year outlook originally provided, and now anticipates annual revenue growth on a percentage basis of at least 25% versus the previous expectation of mid-to-high teens.
It also expects adjusted EBITDA margin expansion of at least 50 basis points versus the previous expectation of flat to modestly expanding; and annual growth in adjusted net income per diluted share on a percentage basis of at least 35% versus the previous expectation of approximately 20%.
