Canada Goose Beats Q2 Estimates, Company Warns Of 'Increased Pressure' On Luxury Consumer Spending

Benzinga11-08

Canada Goose Holdings Inc. (NYSE:GOOS) reported its second-quarter fiscal 2025 financial results before the market opened on Thursday. Here’s what you need to know.

What To Know: Canada Goose reported second-quarter adjusted earnings per share of 5 cents, which may not compare to estimates for a loss of 4 cents. The company reported revenue of $267.8 million, beating estimates of $260.47 million, per Benzinga Pro.

Total revenue was down 5% year-over-year. DTC revenue fell 5%, Wholesale revenue decreased 15%, while Other revenue increased $16.9 million to $26.6 million primarily due to the clearing of slow-moving and discontinued inventory.

Inventories were $473.4 million at quarter’s end, down 9% on a year-over-year basis due to controlled production and sales. Canada Goose said net debt was reduced to $826.4 million in the quarter, down from $851.9 million a year ago.

“Our second quarter performance reflected steady progress across our operating priorities, as we navigated an increasingly challenging macro environment that affected consumer sentiment,” said Dani Reiss, chairman and CEO of Canada Goose. 

The company said it’s investing in expanding its retail presence and marketing ahead of the holiday season, including launching its Fall/Winter 2024 collection and live shopping on Chinese platform Douyin.

Outlook: Canada Goose adjusted its fiscal 2025 outlook to reflect increased pressure on global luxury consumer spending and incremental planned marketing spend.

The company now expects a low-single-digit decrease to low-single-digit increase in full-year revenue, versus the company’s prior expectations for growth in the the low-single-digits.

GOOS Price Action: Canada Goose shares were up 2.56% at $9.84 at the time of writing, according to Benzinga Pro.

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