Canada Goose lowers outlook as revenues slip
However it has reported its gross profit increased $2.6m (£2.1m) for the third quarter to January 1 2023, primarily due to gross margin expansion
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Canada Goose reported revenues of $576.7m (£471.3m), down 1.6% from the prior third quarter “largely due” to timing of wholesale shipments and lower revenue in Mainland China related to Covid-19 disruptions.
However, it revealed its gross profit increased $2.6m (£2.1m) primarily due to gross margin expansion.
It generated net income of $137.5m (£112.3m), adjusted net income of $134.5m (£109.9m) and adjusted EBIT of $197.1m (£161.1m).
For the fiscal year 2023, the company has lowered its overall guidance ranges from the previous outlook due to “worse than expected Covid-19 related disruptions for most of Q3 2023 in Mainland China and slowing momentum in North America against a challenging macroeconomic environment”.
It said it currently expects total revenues of $1.175bn (£960.4m) to $1.195Bn (£976.7m) compared with previous guidance of $1.2bn (£980m) to $1.300bn (£1bn) provided in Q2 2023 earnings release.
Dani Reiss, chairman and CEO, said: “We were pleased with accelerating growth in Mainland China toward the end of the quarter and continue to see promising signs of a strong local rebound to date. However, for most of the third quarter which includes December, our busiest month of the year, our performance was impacted by worse than expected COVID-19 related disruptions in Mainland China.
“This, combined with recent slowing momentum in North America set against a tough macroeconomic backdrop, has led us to revise annual guidance. We believe these challenges are temporary and our brand strength and strategy position us well to drive profitable growth – which we look forward to discussing at our upcoming Investor Day.”
