Canada Goose revenue jumps in Q4 as it focuses on DTC

Dive Brief:

Luxury apparel brand Canada Goose reported fourth quarter revenue increased 31.4% year over year to CA$293.2 million (about $217.4 million), according to a company press release. Net loss increased from CA$9.1 million last year to CA$10 million, per an SEC filing. Revenue declined in the U.S. with a “challenging macro-economic backdrop,” the company said.
Canada Goose’s gross margin in Q4 decreased year over year from 69.1% to 64.9%. Meanwhile, DTC revenue grew 22.6% year over year to CA$227.5 million due in part to retail footprint expansion, ending the quarter with 51 permanent locations. Wholesale revenue grew 30.4% from last year to CA$45.5 million partially due to an increase in order value globally.
For the full year, Canada Goose grew its revenue from CA$1.1 billion in 2022 to CA$1.2 billion, while net income decreased 27% to CA$68.9 million. For fiscal 2024, the company expects total revenue between CA$1.4 billion and CA$1.5 billion, with DTC revenue in the mid-to-high 70s as a percentage of total revenue.

Dive Insight:

Direct-to-consumer growth during Q4 demonstrates Canada Goose’s overall commitment to expanding the channel.

“I am pleased with our fourth quarter results, particularly the strong revenue results generated in Greater China and EMEA,” Dani Reiss, chairman and CEO, said in a statement. “This is a testament to the strength of the brand and this momentum has continued alongside early encouraging results in North America in fiscal 2024 year to date. Lastly, I am excited by the progress our global teams have made in advancing our strategic growth pillars — to accelerate consumer focused growth, build out DTC and create new and expand product categories, rapidly.”

At its investor day in February, the company announced plans to double its physical retail footprint over the next five years. In fiscal 2024, Canada Goose plans to open 16 permanent stores focused in China, the U.S. and Japan.

Rapidly expanding its product offerings is another strategic pillar in the brand’s new Transformation Program. Canada Goose plans to launch sneakers this summer with a shoe that can be worn all-year. Additionally, the company in the fall will release new collections of “hyper feminine” styles that include comfortable new fabrics.

Although sales declined in the U.S. during Q4, Canada Goose still sees potential in the region despite macroeconomic factors.

“When looking at the United States market, it's rebounding nicely at the end of the fourth quarter and into Q1 of this year,” Reiss said on a call with analysts Thursday. “And so we're optimistic about that.”