Revenue increased 1% year-over-year to $281.1
million
Reported net income of $4.1 million
Adjusted EBIT6 of $15.6 million
Canada Goose Holdings Inc. (NYSE, TSX: GOOS), a global
performance luxury and lifestyle brand, announced today financial
results for the second quarter of fiscal 2024, which ended October
1, 2023, and an updated outlook for fiscal 2024. All amounts are in
Canadian dollars unless otherwise indicated.
“We delivered solid second quarter results, with earnings
exceeding our expectations and gross margin expansion despite
operating in a challenging retail environment,” said Dani Reiss,
Chairman and CEO of Canada Goose. “The quarter saw us advance each
of our priorities, including a favorable response to our
investments in emerging categories such as rain wear, apparel and
footwear; a new channel launch with the opening of our first travel
luxury location; the broadening of our customer base with high
impact marketing collaborations and continued operational
discipline. While we are operating in an uncertain macro landscape,
we are confident in the power of our brand, the quality of our
products, and the ongoing execution of our strategy has us poised
to create long-term value for our stakeholders.”
Second Quarter Fiscal 2024 Financial Highlights1:
- Total revenue increased 1% to $281.1m compared to the
prior year, down (3)% on a constant currency basis2.
- DTC revenue grew 15% to $109.4m, up 12% on a constant currency
basis2, driven by growth of in-store retail sales. Sales from DTC
channels increased as part of the total revenue mix to 39% from 34%
in the same reporting period last year. DTC comparable sales3
decreased 7% year-over-year with comparable store sales up slightly
compared to the same period in the prior year and a decrease in
e-commerce sales.
- Wholesale revenue decreased (10)% or (15)% on a constant
currency basis2, consistent with our expectations across all
geographies, due to the planned streamlining of wholesale
relationships as we optimize for greater DTC sales within our
channel mix, partially offset by earlier shipments of orders to
wholesale customers.
- Revenue grew by 13% in Asia Pacific, 6% in EMEA4 and was down
(7)% in North America. The decrease in North America revenue
year-over-year was primarily due to the decline in wholesale
revenue, which was in line with expectations, partially offset by
an increase in DTC revenue.
- Gross profit grew 8% to $179.5m, compared to the prior
year. Gross margin for the quarter expanded to 63.9% compared to
59.8% in the second quarter of fiscal 2023, primarily due to a
higher proportion of DTC channel sales, pricing, and favourable
product mix from the sale of higher margin styles within
Heavyweight Down and non-Heavyweight Down categories, partially
offset by higher product costs due to higher input cost inflation
and freight and duty charges.
- Selling, general and administrative (SG&A)5 expenses
were $177.2m, compared to $144.3m in the comparable period last
year. The increase in SG&A was primarily due to our expanded
retail network and investments in initiatives to improve long-term
operational efficiency through our Transformation Program, the
majority of which were one-time in nature.
- Operating lncome5 was $2.3m, compared to $21.5m in the
second quarter of fiscal 2023. The decrease in operating income was
attributable to higher SG&A costs, partially offset by higher
gross profit.
- Adjusted EBIT5,6 was $15.6m, compared to $26.3m in the
second quarter of fiscal 2023.
- Net Income attributable to shareholders was $3.9m, or
$0.04 per basic share, compared with a net income attributable to
shareholders of $3.3m, or $0.03 per basic share for the second
quarter of fiscal 2023.
- Adjusted net income6 was $16.2m, or $0.16 per basic
share, compared with an adjusted net income of $20.3m, or $0.19 per
basic share for the second quarter of fiscal 2023.
Revenue By Segment
Second quarter ended
$ Change
% Change
CAD $ millions
October 1, 2023
October 2, 2022
As reported
Foreign exchange
impact
In constant currency7
As reported
In constant currency7
DTC
109.4
94.8
14.6
(3.4
)
11.2
15.4
%
11.8
%
Wholesale
162.0
180.7
(18.7
)
(8.3
)
(27.0
)
(10.3
)%
(14.9
)%
Other
9.7
1.7
8.0
—
8.0
470.6
%
470.6
%
Total revenue
281.1
277.2
3.9
(11.7
)
(7.8
)
1.4
%
(2.8
)%
Revenue by Geography
Second quarter ended
$ Change
% Change
CAD $ millions
October 1, 2023
October 2, 2022
As reported
Foreign exchange
impact
In constant currency7
As reported
In constant currency7
Canada
57.9
58.7
(0.8
)
—
(0.8
)
(1.4
)%
(1.4
)%
United States
66.2
74.2
(8.0
)
(1.9
)
(9.9
)
(10.8
)%
(13.3
)%
North America
124.1
132.9
(8.8
)
(1.9
)
(10.7
)
(6.6
)%
(8.1
)%
Asia Pacific
63.8
56.4
7.4
(1.1
)
6.3
13.1
%
11.2
%
EMEA
93.2
87.9
5.3
(8.7
)
(3.4
)
6.0
%
(3.9
)%
Total revenue
281.1
277.2
3.9
(11.7
)
(7.8
)
1.4
%
(2.8
)%
Balance Sheet Highlights
Inventory was $519.7m for the second quarter ended October 1,
2023, up 2% from the second quarter ended October 2, 2022, with
decelerating year-over-year growth compared to the first quarter of
fiscal 2024.
During the second quarter of fiscal 2024, the Company
repurchased 1,364,542 subordinate voting shares for a total cash
consideration of $29.9m, ending the quarter with a cash balance of
$37.5m, compared with $97.1m at first quarter ended October 2,
2022.
Second Quarter Fiscal 2024 Business Highlights
During the second quarter, our progress was guided by our three
strategic growth pillars: Driving consumer-focused growth, building
the DTC network, and product expansion. Notable business highlights
from our second quarter included the following:
- Driving consumer-focused growth
- Launched a collaboration with Rokh x Matt McCormick that
includes eight exclusive pieces for women. In October we launched a
luxury outerwear collection through a collaboration with streetwear
brand, Pyer Moss.
- Launched our Fall/Winter 2023 campaign, shot by acclaimed
photographer, Annie Liebowitz, featuring three trailblazing women:
Sheila Atim (actor, musician, writer, and composer), Sophie
Darlington (award-winning wildlife filmmaker and cinematographer),
and Kimberly Newell (Olympic ice hockey goalie).
- In addition, our Fall/Winter 2023 lineup includes a partnership
with celebrity stylist Karla Welch and upcoming collaborations with
Concepts, BAPE and OVO before the calendar year end.
- Building the DTC network
- Opened six new permanent stores, including three stores in
United States (Los Angeles, Philadelphia and Atlanta), two in
Mainland China (Tianjin and Shanghai) and one in Japan (Tokyo), and
converted two temporary stores to permanent in Japan, bringing the
total permanent store count to 62 at the end of the second quarter
of fiscal 2024. As a result, we added nearly 12,000 square feet
with our new locations, strategically placing our stores in some of
the most preeminent shopping destinations in the world and
providing additional touch points to connect with our high value
customers.
- Diversified our wholesale business by opening our first branded
standalone Travel retail store at Frankfurt International Airport
in September 2023. This marks the beginning of our journey in the
travel retail market, which presents a meaningful opportunity with
luxury tourists. Further openings are planned this year.
- Product expansion
- Launched our Fall/Winter 2023 women’s collection, featuring
sustainable offerings with nature-inspired and classic colourways
that combine luxurious style with performance, including the Rhoda
Parka, Garnet Cropped Puffer and Vest and Copal Cashmere Crewneck
and Turtleneck made from pima cotton, lumina (a recycled fabric)
and 100% cashmere yarn.
- Non-Heavyweight Down category grew year-over-year in the second
quarter of fiscal 2024, expanding its share of revenue within the
overall mix. Within non-Heavyweight Down, rain wear was our fastest
growing category followed by apparel, with revenue in both
categories increasing across all regions. The Chilliwack fleece
bomber, HyBridge knit jacket and Simcoe fleece hoody topped our
best-selling list in the Apparel category during the quarter.
- Launched our first-ever sneaker line, the Glacier Trail,
delivering ultra-versatile performance and year-round relevance
while meeting the needs of the modern explorer.
Subsequent to Second Quarter Fiscal 2024
- Celebrated the 5th anniversary of our first brick-and-mortar
store opening in China, holding an event in Shanghai that was
attended by hundreds of guests, including celebrities, influencers,
business partners and government officials. Since opening our first
store in Beijing in 2018, our footprint in Mainland China has grown
to 21 permanent stores.
Updated Fiscal 2024 Full Year and Q3 Outlook8
The outlook that follows supersedes all prior financial outlook
statements made by Canada Goose, constitutes forward-looking
information within the meaning of applicable securities laws, and
is based on a number of assumptions and subject to a number of
risks. The purpose of this outlook is to provide a description of
management's expectations regarding the Company's annual financial
performance and may not be appropriate for other purposes. Actual
results could vary materially as a result of numerous factors,
including certain risk factors, many of which are beyond Canada
Goose’s control. Please see "Forward-looking Statements" below for
more information.
Our outlook for the second half of fiscal 2024 has come under
pressure due to the increasingly challenging global macro-economic
and geopolitical environments that have impacted consumer
decision-making and prioritization of spend. As a result, we saw
early momentum gathered in our second quarter of fiscal 2024 begin
to slow noticeably in September. We have, therefore, revised and
expanded our potential range of outcomes to reflect the current
environment.
For fiscal 2024, we expect:
- Total revenue between $1.2b and $1.4b, compared to original
guidance of $1.4b to $1.5b.
- Non-IFRS adjusted EBIT between $135m and $225m, representing a
margin of between 11% and 16%, compared to original guidance of
non-IFRS adjusted EBIT of $210m to $240m, representing a margin of
15% to 16%.
- Non-IFRS adjusted net income per diluted share between $0.60
and $1.40, compared to original guidance of $1.20 to $1.48.
For the third quarter of fiscal 2024, we expect:
- Total revenue between $575m and $700m.
- Non-IFRS adjusted EBIT between $190m and $265m.
- Non-IFRS adjusted net income per diluted share between $1.22
and $1.76.
Our outlook now includes the following assumptions:
- DTC revenue as a percentage of total revenue of approximately
70%, representing a high-single-digit increase to a
low-double-digit decrease in year-over-year DTC comparable sales
growth, and continued channel expansion.
- Wholesale revenue growth to decrease by a low-to-mid teens
percentage rate year-over-year, reflective of the continued editing
of our wholesale door count (-6%), revised re-order expectations,
and expansion of our retail store network.
- Gross margin as a percentage of total revenue to be in the high
60s, with DTC and wholesale gross margins in the mid 70s and low
50s, respectively.
- 15 permanent retail stores to open, which we expect to be fully
operational in the second half of the year, concentrated in
Mainland China and the USA.
- SG&A expense to grow at a mid-teens percentage rate on a
year-over-year basis due to a larger DTC network and operating cost
base, moderated by cost savings initiatives, including
approximately $15m in savings from the Transformation Program in
fiscal 2024.
- Effective tax rate in the high teens as a percentage of income
before taxes for fiscal 2024.
- Weighted average diluted shares outstanding of 103.5m for
fiscal 2024, reflecting share buy backs executed year-to-date and
assumed dilution effective of outstanding share-based
payments.
Conference Call Information
The Company will host the conference call at 8:30 a.m. Eastern
Standard Time on November 1, 2023. The conference call can be
accessed by using the following link:
https://events.q4inc.com/attendee/491815362. After registering, an
email will be sent including dial-in details and a unique
conference call pin required to join the live call. A live webcast
of the conference call will also be available on the investor
relations page of the Company's website at
http://investor.canadagoose.com.
About Canada Goose
Founded in 1957 in a small warehouse in Toronto, Canada, Canada
Goose (NYSE:GOOS, TSX:GOOS) is a lifestyle brand and a leading
manufacturer of performance luxury apparel. Every collection is
informed by the rugged demands of the Arctic, ensuring a legacy of
functionality is embedded in every product from parkas and rainwear
to apparel and accessories. Canada Goose is inspired by relentless
innovation and uncompromised craftsmanship, recognized as a leader
for its Made in Canada commitment. In 2020, Canada Goose announced
HUMANATURE, its purpose platform that unites its sustainability and
values-based initiatives, reinforcing its commitment to keep the
planet cold and the people on it warm. Canada Goose also owns
Baffin, a Canadian designer and manufacturer of performance outdoor
and industrial footwear. Visit www.canadagoose.com for more
information.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements,
including statements relating to our fiscal 2024 full year and
third quarter financial outlook, the execution of our proposed
strategy including retail footprint expansion and new product
offerings, early leading indicators and impacts for ongoing fiscal
periods, and our operating performance and prospects. These
forward-looking statements generally can be identified by the use
of words such as “believe,” “could,” “continue,” “expect,”
“estimate,” “may,” “potential,” “would,” “will,” and other words of
similar meaning. Each forward-looking statement contained in this
press release, including, without limitation, our fiscal 2024 full
year and third quarter financial outlook and the related
assumptions included herein is subject to risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied by such statement. Our business is subject to
substantial risks and uncertainties. Applicable risks and
uncertainties include, among others, the impact on our operations
of the current global economic conditions and their evolution, and
are discussed under “Cautionary Note regarding Forward-Looking
Statements” and “Factors Affecting our Performance” in our
Management's Discussion and Analysis ("MD&A") as well as under
“Risk Factors” in our Annual Report on Form 20-F for the year ended
April 2, 2023. You are also encouraged to read our filings with the
SEC, available at www.sec.gov, and our filings with Canadian
securities regulatory authorities available at www.sedarplus.ca for
a discussion of these and other risks and uncertainties. Investors,
potential investors, and others should give careful consideration
to these risks and uncertainties. We caution investors not to rely
on the forward-looking statements contained in this press release
when making an investment decision in our securities. The
forward-looking statements in this press release speak only as of
the date of this release, and we undertake no obligation to update
or revise any of these statements.
Condensed Consolidated Interim
Statements of Income
(unaudited)
(in millions of Canadian dollars, except
share and per share amounts)
Second quarter ended
Two quarters ended
October 1, 2023
October 2, 2022
October 1, 2023
October 2, 2022
Reclassified
Reclassified
$
$
$
$
Revenue
281.1
277.2
365.9
347.1
Cost of sales
101.6
111.4
131.2
138.6
Gross profit
179.5
165.8
234.7
208.5
Selling, general & administrative
expenses
177.2
144.3
332.1
269.2
Operating income (loss)
2.3
21.5
(97.4
)
(60.7
)
Net interest, finance and other costs
13.6
23.6
28.1
29.5
Loss before income taxes
(11.3
)
(2.1
)
(125.5
)
(90.2
)
Income tax recovery
(15.4
)
(7.1
)
(44.6
)
(31.6
)
Net income (loss)
4.1
5.0
(80.9
)
(58.6
)
Attributable to:
Shareholders of the Company
3.9
3.3
(77.2
)
(59.1
)
Non-controlling interest
0.2
1.7
(3.7
)
0.5
Net income (loss)
4.1
5.0
(80.9
)
(58.6
)
Earnings (loss) per share attributable
to shareholders of the Company
Basic and diluted
$
0.04
$
0.03
$
(0.75
)
$
(0.56
)
Condensed Consolidated Statements of
Financial Position
(unaudited)
(in millions of Canadian dollars)
October 1, 2023
October 2, 2022
April 2, 2023
Assets
$
$
$
Current assets
Cash
37.5
97.1
286.5
Trade receivables
146.5
150.0
50.9
Inventories
519.7
511.5
472.6
Income taxes receivable
17.2
10.5
0.9
Other current assets
82.6
63.4
52.3
Total current assets
803.5
832.5
863.2
Deferred income taxes
119.2
90.0
67.5
Property, plant and equipment
179.3
122.4
156.0
Intangible assets
132.4
133.3
135.1
Right-of-use assets
280.0
274.3
291.8
Goodwill
62.7
64.1
63.9
Other long-term assets
12.2
26.9
12.5
Total assets
1,589.3
1,543.5
1,590.0
Liabilities
Current liabilities
Accounts payable and accrued
liabilities
210.2
218.4
195.6
Provisions
20.5
21.7
21.6
Income taxes payable
7.7
12.9
31.5
Short-term borrowings
80.7
57.3
27.6
Current portion of lease liabilities
77.1
65.4
76.1
Total current liabilities
396.2
375.7
352.4
Provisions
35.8
31.7
36.5
Deferred income taxes
15.5
23.2
16.4
Term Loan
391.4
402.7
391.6
Lease liabilities
253.2
250.1
258.7
Other long-term liabilities
56.5
38.5
56.9
Total liabilities
1,233.6
1,177.0
1,112.5
Equity
Equity attributable to shareholders of the
Company
352.2
355.4
469.5
Non-controlling interests
3.5
11.1
8.0
Total equity
355.7
366.5
477.5
Total liabilities and equity
1,589.3
1,543.5
1,590.0
Condensed Consolidated Interim
Statements of Cash Flows
(unaudited)
(in millions of Canadian dollars)
Second quarter ended
Two quarters ended
October 1, 2023
October 2, 2022
October 1, 2023
October 2, 2022
Reclassified9
Reclassified9
$
$
$
$
Operating activities
Net income (loss)
4.1
5.0
(80.9
)
(58.6
)
Items not affecting cash:
Depreciation and amortization
30.6
26.4
59.8
52.2
Income tax recovery
(15.4
)
(7.1
)
(44.6
)
(31.6
)
Interest expense
12.9
9.2
20.3
16.2
Foreign exchange loss (gain)
4.2
17.1
(0.5
)
19.2
Loss (gain) on disposal of assets
0.1
(0.1
)
—
(0.1
)
Share-based payment
4.7
4.3
7.2
7.0
Remeasurement of put option
2.7
1.7
10.8
1.7
Remeasurement of contingent
consideration
(2.0
)
(3.7
)
(3.0
)
(3.7
)
41.9
52.8
(30.9
)
2.3
Changes in non-cash operating items
(67.3
)
(79.2
)
(166.2
)
(202.7
)
Income taxes paid
(18.9
)
(10.1
)
(49.0
)
(26.3
)
Interest paid
(12.9
)
(8.3
)
(20.4
)
(15.0
)
Net cash used in operating
activities
(57.2
)
(44.8
)
(266.5
)
(241.7
)
Investing activities
Purchase of property, plant and
equipment
(26.0
)
(7.8
)
(31.2
)
(10.3
)
Investment in intangible assets
(0.3
)
0.4
(0.5
)
(0.7
)
Initial direct costs of right-of-use
assets
(0.1
)
(0.3
)
(0.4
)
(0.4
)
Net cash inflow from business
combination
—
—
—
2.8
Net cash used in investing
activities
(26.4
)
(7.7
)
(32.1
)
(8.6
)
Financing activities
Mainland China Facilities borrowings
25.1
19.5
37.7
24.1
Japan Facility borrowings
7.1
5.8
15.4
9.7
Term Loan repayments
(1.0
)
(1.0
)
(2.0
)
(2.0
)
Revolving Facility borrowings
86.3
55.4
86.3
55.4
Transaction costs on financing
activities
(0.3
)
—
(0.3
)
—
Subordinate voting shares purchased and
cancelled under NCIB
(29.9
)
—
(57.4
)
—
Principal payments on lease
liabilities
(15.3
)
(13.5
)
(28.7
)
(27.3
)
Issuance of shares
0.1
—
0.1
—
Net cash from financing
activities
72.1
66.2
51.1
59.9
Effects of foreign currency exchange rate
changes on cash
1.0
1.6
(1.5
)
(0.2
)
(Decrease) increase in cash
(10.5
)
15.3
(249.0
)
(190.6
)
Cash, beginning of period
48.0
81.8
286.5
287.7
Cash, end of period
37.5
97.1
37.5
97.1
Non-IFRS Financial Measures and Other Specified Financial
Measures
This press release includes references to certain non-IFRS
financial measures such as adjusted EBIT, adjusted net income
(loss) and constant currency revenue and certain non-IFRS ratios
such as, adjusted EBIT margin, adjusted net income (loss)
attributable to shareholders of the Company and adjusted net income
(loss) per basic and diluted share attributable to the shareholders
of the Company. These financial measures are employed by the
Company to measure its operating and economic performance and to
assist in business decision-making, as well as providing key
performance information to senior management. The Company believes
that, in addition to conventional measures prepared in accordance
with IFRS, certain investors and analysts use this information to
evaluate the Company’s operating and financial performance. These
financial measures are not defined under IFRS nor do they replace
or supersede any standardized measure under IFRS. Other companies
in our industry may calculate these measures differently than we
do, limiting their usefulness as comparative measures. Additional
information, including definitions and reconciliations of non-IFRS
measures to the nearest IFRS measure can be found in our MD&A
for the second quarter of fiscal 2024 under “Non-IFRS Financial
Measures and Other Specified Financial Measures. Such
reconciliations can also be found in this press release under
“Reconciliation of Non-IFRS Measures” and, in the case of constant
currency revenue, under “Revenue”.
This press release also includes DTC comparable sales growth
which is a supplementary financial measure defined as sales on a
constant currency basis from e-Commerce sites and stores which have
been operating for one full year (12 successive fiscal months). The
measure excludes store sales from both periods for the specific
trading days when the stores were closed, whether those closures
occurred in the current period or the comparative period.
Reconciliation of Non-IFRS Measures
The tables below reconcile net income (loss) to adjusted EBIT
and adjusted net income (loss) attributable to shareholders of the
Company for the periods indicated. Adjusted EBIT margin is equal to
adjusted EBIT for the period presented as a percentage of revenue
for the same period.
Beginning with the third quarter of fiscal 2023, we no longer
include pre-store opening costs in the reconciliation of net income
(loss) to adjusted EBIT and adjusted net income (loss) attributable
to shareholders of the Company, as we believe these costs are a
part of our operating base as we accelerate new store openings.
Comparable periods have been restated to reflect this change.
Beginning with the first quarter of fiscal 2024, foreign
exchange gains and losses related to the term loan, net of hedging,
are now reflected in the presentation of net interest, finance and
other costs, which was previously presented in SG&A expenses.
Comparable periods have been reclassified to reflect this
change.
Second quarter ended
Two quarters ended
CAD $ millions
October 1, 2023
October 2, 2022
October 1, 2023
October 2, 2022
Net income (loss)
4.1
5.0
(80.9
)
(58.6
)
Add (deduct) the impact of:
Income tax recovery
(15.4
)
(7.1
)
(44.6
)
(31.6
)
Net interest, finance and other costs
13.6
23.6
28.1
29.5
Operating income (loss)
2.3
21.5
(97.4
)
(60.7
)
Net temporary store closure costs (a)
—
0.2
—
2.4
Head office transition costs (c)
—
1.5
0.8
3.2
Japan Joint Venture costs (e)
0.1
2.8
0.1
4.2
Strategic initiatives (g)
7.7
—
15.5
—
Net corporate restructuring costs (h)
5.5
—
5.5
—
Legal proceeding costs (i)
—
1.2
—
2.2
Other (l)
—
(0.9
)
—
(0.9
)
Total adjustments
13.3
4.8
21.9
11.1
Adjusted EBIT
15.6
26.3
(75.5
)
(49.6
)
Adjusted EBIT margin
5.5
%
9.5
%
(20.6
)%
(14.3
)%
Second quarter ended
Two quarters ended
CAD $ millions
October 1, 2023
October 2, 2022
October 1, 2023
October 2, 2022
Net income (loss)
4.1
5.0
(80.9
)
(58.6
)
Add (deduct) the impact of:
Net temporary store closure costs (a)
(b)
—
0.3
—
2.5
Head office transition costs (c) (d)
—
1.8
1.2
3.9
Japan Joint Venture costs (e)
0.1
2.8
0.1
4.2
Japan Joint Venture remeasurement loss
(gain) on contingent consideration and put option (f)
0.7
(2.0
)
7.8
(2.0
)
Strategic initiatives (g)
7.7
—
15.5
—
Net corporate restructuring costs (h)
5.5
—
5.5
—
Legal proceeding costs (i)
—
1.2
—
2.2
Unrealized foreign exchange loss (gain) on
Term Loan Facility (j)
1.7
16.8
(0.5
)
15.3
Deferred tax adjustment (k)
—
—
(0.5
)
—
Other (l)
—
(0.9
)
—
(0.9
)
Total adjustments
15.7
20.0
29.1
25.2
Tax effect of adjustments
(3.1
)
(2.7
)
(4.9
)
(4.0
)
Adjusted net income (loss)
16.7
22.3
(56.7
)
(37.4
)
Adjusted net income (loss) attributable to
non-controlling interest (m)
(0.5
)
(2.0
)
(0.2
)
(1.1
)
Adjusted net income (loss) attributable
to shareholders of the Company
16.2
20.3
(56.9
)
(38.5
)
Weighted average number of shares
outstanding
Basic
102,468,461
105,334,265
103,089,612
105,284,370
Diluted
103,586,542
105,864,969
103,089,612
105,284,370
Adjusted net income (loss) per basic
share attributable to shareholders of the Company
$
0.16
$
0.19
$
(0.55
)
$
(0.37
)
Adjusted net income (loss) per diluted
share attributable to shareholders of the Company
$
0.16
$
0.19
$
(0.55
)
$
(0.37
)
(a) Net temporary store closure costs of $nil and $nil were
incurred in the second and two quarters ended October 1, 2023,
respectively (second and two quarters ended October 2, 2022 - $0.2m
and $2.4m, respectively).
(b) Net temporary store closure costs incurred in (a) as well as
$nil and $nil of interest expense on lease liabilities for
temporary store closures for the second and two quarters ended
October 1, 2023, respectively (second and two quarters ended
October 2, 2022 - $0.1m and $0.1m, respectively).
(c) Costs incurred for the corporate head office transition,
including depreciation on right-of-use assets.
(d) Corporate head office transition costs incurred in (c) as
well as $nil and $0.4m of interest expense on lease liabilities for
the second and two quarters ended October 1, 2023, respectively
(second and two quarters ended October 2, 2022 - $0.3m and $0.7m,
respectively).
(e) Costs incurred in connection with the establishment of the
Japan Joint Venture. This is driven by the impact of gross margin
that would otherwise have been recognized on the sale of inventory
recorded at net realizable value less costs to sell, as well as
other costs of establishing the Japan Joint Venture.
(f) Changes to the fair value remeasurement of the contingent
consideration and put option liability, inclusive of translation
gains and losses, related to the Japan Joint Venture. The Company
recorded a loss of $0.7m and $7.8m on fair value remeasurement of
the contingent consideration and put option during the second and
two quarters ended October 1, 2023, respectively (second and two
quarters ended October 2, 2022 - gain of $(2.0)m and $(2.0)m,
respectively). These gains and losses are included in net interest,
finance and other costs within the interim statements of income
(loss).
(g) Consultancy fees incurred in connection with our
Transformation Program.
(h) Corporate restructuring costs, net of share-based award
forfeitures, associated with the reduction in workforce as part of
our Transformation Program.
(i) Costs for legal proceeding fees including for the defence of
class action lawsuits.
(j) Unrealized gains and losses on the translation of the term
loan from USD to CAD, net of the effect of derivative transactions
entered into to hedge a portion of the exposure to foreign currency
exchange risk. These costs were previously presented in SG&A
expenses, are now reflected in the presentation of net interest,
finance and other costs.
(k) Deferred tax adjustment recorded as the result of Swiss tax
reform in Canada Goose International AG.
(l) Costs related to the transition of logistics agencies,
restructuring costs related to the company’s manufacturing
facilities, rent abatements received as well as individually
immaterial items.
(m) Calculated as net income attributable to non-controlling
interest within the interim financial statements of $(0.2)m and
$3.7m less $(0.3)m and $(3.9)m for the gross margin adjustment and
the put option liability and contingent consideration revaluation
related to the non-controlling interest within the Japan Joint
Venture for the second and two quarters ended October 1, 2023,
respectively. Net income attributable to non-controlling interest
within the interim financial statements of $(1.7)m and $(0.5)m less
$(0.3)m and $(0.6)m for the gross margin adjustment and the put
option liability and contingent consideration revaluation related
to the non-controlling interest within the Japan Joint Venture for
the second and two quarters ended October 2, 2022,
respectively.
1 Comparisons to second quarter ended October 2, 2022.
2 Constant currency revenue is a non-IFRS financial measure. See
“Non-IFRS Financial Measures and Other Specified Financial
Measures” for more information.
3 DTC comparable sales growth is a supplementary financial
measure. See “Non-IFRS Financial Measures and Other Specified
Financial Measures” for a description of this measure.
4 EMEA comprises Europe, the Middle East, Africa, and Latin
America.
5 Certain comparative figures have been reclassified to conform
with current year presentation. Foreign exchange gains and losses
related to the term loan, net of hedging, which were presented in
SG&A expenses in the second quarter ended October 2, 2022, are
now reflected in the presentation of net interest, finance and
other costs.
6 Adjusted EBIT and adjusted net income are non-IFRS financial
measures, and adjusted net income attributable to shareholders of
the Company and adjusted net income per basic and diluted share
attributable to the shareholders of the Company are non-IFRS
financial ratios. See “Non-IFRS Financial Measures and Other
Specified Financial Measures” for more information.
7 Constant currency revenue is a non-IFRS financial measure. See
“Non-IFRS Financial Measures and Other Specified Financial
Measures” for more information.
8 The Company is not able to provide, without unreasonable
effort, a reconciliation of the guidance for non-IFRS adjusted EBIT
and non-IFRS adjusted net income per diluted share to the most
directly comparable IFRS measure because the Company does not
currently have sufficient data to accurately estimate the variables
and individual adjustments included in the most directly comparable
IFRS measure that would be necessary for such reconciliations,
including (a) income tax related accruals in respect of certain
one-time items (b) the impact of foreign currency exchange and (c)
non-recurring expenses that cannot reasonably be estimated in
advance. These adjustments are inherently variable and uncertain
and depend on various factors that are beyond the Company's control
and as a result it is also unable to predict their probable
significance. Therefore, because management cannot estimate on a
forward-looking basis without unreasonable effort the impact these
variables and individual adjustments will have on its reported
results in accordance with IFRS, it is unable to provide a
reconciliation of the non-IFRS measures included in its fiscal 2024
guidance.
9 Management identified an immaterial reclassification in the
interim statement of cash flows and related note disclosure for the
second and two quarters ended October 2, 2022 decreasing cash
outflows from investing activities and increasing cash outflows
from operating activities of $7.0m due to translation of foreign
currency. Certain comparative figures have been reclassified in the
interim statement of cash flows and related note disclosure related
to this reclassification. The reclassification has been
appropriately reflected in the interim statement of cash flows and
related note disclosure for the second and two quarters ended
October 1, 2023.
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version on businesswire.com: https://www.businesswire.com/news/home/20231101112425/en/
Investors: ir@canadagoose.com
Media: media@canadagoose.com
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