• The Canadian outdoor apparel specialist has booked a mixed Q1.
  • Net loss widened to CAD18.7m in the period but total revenue surged 58.5% to CAD44.7m.
Q1 net loss widened to CAD18.7m (US$14.2m) from CAD12.1m in the year-ago period

Q1 net loss widened to CAD18.7m (US$14.2m) from CAD12.1m in the year-ago period

Canadian outdoor apparel specialist Canada Goose has hailed a strong start to the year, despite a widening of its net loss in the first quarter of fiscal 2019.

For the three months to 30 June, Canada Goose saw net loss expand to CAD18.7m (US$14.2m) from CAD12.1m in the year-ago period, despite a surge in sales. But in what is a seasonally small quarter for the luxury outerwear brand, it was hit with higher corporate expenses on marketing, headcount IT, and costs relating to public company compliance.

Gross margin expanded to 64%, compared to 46.8% last year. The increase in gross margin was attributable to a greater proportion of direct-to-consumer revenue and to a lesser degree, wholesale gross margin expansion.

And total revenue jumped 58.5% to CAD44.7m from CAD28.2m last year, while wholesale revenue increased to CAD21.5m from CAD19.9m, driven by higher order volumes from existing retail partners.

Direct-to-consumer revenue increased to CAD23.2m from CAD8.3m in the prior-year period. The increase was primarily due to the strong performance of all existing and new retail stores, with particularly significant contributions from well-established locations. E-commerce also had a positive impact on the quarter.

"Our strong start to the year, in our smallest fiscal quarter, is a great leading indicator. Our products and our brand continue to resonate with people around the world, and our direct-to-consumer channel was a standout performer in the quarter. Productivity across our retail store network in this off-peak period was exceptional, reducing the loss impact of our strategic growth investments and giving us a favourable tailwind for the rest of the year," said CEO Dani Reiss.

Looking ahead, the company has reiterated its fiscal 2019 outlook, forecasting annual revenue growth of at least 20% and annual growth in adjusted net income per diluted share of at least 25%.