Canada Goose quarterly earnings show it's shedding its winter-only image, leaning into expanding spring and summer lines to drive more stable sales year-round.
The Canadian luxury apparel brand, best known for its pricy winter parkas, has been shifting its focus to offer clothing for every season. Chief Executive Dani Reiss said non-winter lines-which include shirts, bottoms and light jackets-have expanded rapidly, and account for over a third of revenue generated in the first quarter.
"Apparel, rainwear and windwear accounted for nearly 40% of our first-quarter revenue," Reiss said on an investor call Thursday. "To put that in perspective, these categories generated as much revenue this quarter as our entire company did in the first quarter eight years ago. This is a remarkable illustration of how Canada Goose has evolved."
The growth in non-winter categories, that just four years ago represented only 5% of the business, has been an additive rather than a replacement for core lines, said Reiss, noting that sales of its down-filled outerwear have also expanded in the quarter.
"This demonstrates our ability to build a more balanced business throughout the year, all remaining true to what makes Canada Goose distinctive," he said.
Total revenue rose 10% to 118.9 million Canadian dollars ($84.6 million) in the first quarter, topping expectations of only a slight rise from the prior year.
Direct-to-consumer revenue was up 8.6% to C$84.8 million, thanks largely to its performance in Asia Pacific and North America, while wholesale revenue jumped nearly 67% to C$29.8 million, primarily due to shipping a larger planned wholesale order book and strong in-season orders from its partners.
Loss narrowed to C$93 million, or C$0.93 a share, from a loss of C$125.5 million, or C$1.29 a share, last year. Adjusted earnings were C$0.89 a share, C$0.10 shy of forecasts.
Because of its expanded product lines and an expanded wholesale order book, inventory rose 11% to C$489.9 million.
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