Canada Goose Holdings, the Canadian winter apparel brand, announced its financial results for the third quarter, falling short of both profit and revenue expectations. Despite growth in its Asia Pacific market, the company reported a decrease in net income, which amounted to 130.6 million Canadian dollars ($97.2 million), down from C$134.9 million in the previous year. However, on a per-share basis, the net income slightly increased from C$1.28 to $1.29.
Adjusted earnings for the period came in line with consensus expectations, reaching C$1.37 per share after excluding exceptional and one-off items. Total revenue rose from C$576.7 million to C$609.9 million, although analysts had anticipated a higher figure of C$618.4 million.
The company experienced significant growth in the Asia Pacific market, with a 62% increase in revenue year-over-year. Conversely, revenue in the EMEA region fell by 26%, while North America experienced a decline of 14%. Such declines were mainly attributed to lower ecommerce and wholesale revenue.
Canada Goose noted that direct-to-customer revenue rose by 14% to C$514 million due to strong in-store retail sales. On the other hand, there was a decline of 28% in wholesale revenue as the company’s focus shifted towards direct-to-consumer sales.
Looking ahead, Canada Goose expects fourth-quarter revenue to range between C$310 million and C$330 million, surpassing the analyst consensus of C$298.8 million. Moreover, the company revised its full fiscal year 2024 revenue forecast, narrowing it to between C$1.29 billion and C$1.31 billion, compared to the previous estimate of C$1.2 billion to $1.4 billion.
Overall, Canada Goose acknowledged the challenges it faced during the third quarter but remains optimistic about its future growth prospects.
