Dive Brief:
- Canada Goose’s first quarter total revenue increased 21% year over year to 84.8 million Canadian dollars (about $63.5 million), according to a company press release Thursday. The luxury apparel brand reported its net loss increased from CA$63.6 million the year before to CA$85 million.
- Driven by in-store retail sales, the company’s direct-to-consumer revenue grew 60% to CA$55.8 million. Meanwhile, wholesale revenue decreased 18% and operating loss jumped from CA$82.2 million to CA$99.7 million.
- Canada Goose maintained its full-year fiscal 2024 guidance and expects second-quarter total revenue to be from CA$270 million to CA$290 million.
Dive Insight:
Canada Goose’s first quarter results demonstrate the brand’s commitment to DTC channels.
“We had a strong start to the year, with first quarter results reflecting solid demand for our brand, especially as more customers shop directly with us,” Dani Reiss, CEO of Canada Goose, said in a statement. “We remain focused on our growth pillars to drive results over the long-term. In the first quarter, we welcomed more new customers across every market into our expanding global retail network, and we continued to see product categories like apparel and accessories resonate with our customers.”
Canada Goose’s DTC comparable sales doubled in Asia Pacific and the company said its modest e-commerce growth was also fueled by the region, according to a company U.S. Securities and Exchange Commission filing.
As part of Canada Goose’s effort to double its footprint over five years, the luxury brand opened three new permanent stores during Q1, which included locations in the U.S. The growth of its DTC channel in the quarter contrasted with the brand’s slowing wholesale revenue, which is part of a concerted effort to streamline its wholesale partnerships.
The brand also expanded its footwear offerings during the quarter, launching its first sneaker in July with the Glacier Trail sneaker priced at $450 and the Glacier Trail High costing $550.
