For the fourth quarter, Canada Goose Holdings Inc. reported total revenue of 208.8 million Canadian dollars, up 33.7 percent from 140.9 million Canadian dollars. Based on existing economic and operating conditions, the company currently expects total revenue to exceed 1 billion Canadian dollars in fiscal 2022.
“Canada Goose has shifted from recovery to growth beyond pre-pandemic levels,” said Dani Reiss, the company’s president & CEO, adding, “We achieved our largest ever fourth quarter by revenue. Recognizing pandemic uncertainties remain, we are highly confident in our potential for meaningful growth as we move into fiscal 2022.”
Highlights of Q4 results at Canada Goose
The company said, DTC revenue was 172.2 million Canadian dollars from 114.2 million Canadian dollars driven by ecommerce growth and continued retail expansion in Mainland China, offset by lower store revenue in other markets due to Covid-19 disruptions.
The company’s wholesale revenue was 33.3 million Canadian dollars compared to 25 million Canadian dollars due to the higher in-season orders relative to the comparative period. Other revenue was 3.3 million Canadian dollars from 1.7 million Canadian dollars.
Canada Goose posts positive operating performance
The company’s gross profit was 138.6 million Canadian dollars, a gross margin of 66.4 percent, compared to 93.6 million Canadian dollars and 66.4 percent. Operating income was 7.8 million Canadian dollars, an operating margin of 3.7 percent, compared to an operating loss of 17.2 million Canadian dollars and an operating margin of negative 12.2 percent.
Adjusted EBIT was 5.4 million Canadian dollars and an adjusted EBIT margin of 2.6 percent, compared to negative 9.7 million Canadian dollars and negative 6.9 percent EBIT margin last year.
Net income was 2.9 million Canadian dollars or 0.03 Canadian dollars per diluted share compared to 2.5 million Canadian dollars or 0.02 Canadian dollars per diluted share. Adjusted net income was 1.1 million Canadian dollars or 0.01 Canadian dollars per diluted share compared to negative 13.3 million Canadian dollars or negative 0.12 Canadian dollars per diluted share.
The company’s estimate for FY22 is based on assuming annual DTC revenue approaching 70 percent of total revenue, with continued distribution expansion in-line with historical levels and annual wholesale revenue in-line with fiscal 2021.
Total revenue in Q1 fiscal 2022 is assumed to be less than double the 26.1 million Canadian dollars of total revenue from Q1 fiscal 2021.
As of the date, six of 28 Canada Goose retail stores, representing 21 percent of the network, are closed.