Canada Goose Holdings Inc. (NYSE:GOOS) reported third-quarter fiscal year 2024 total revenue growth of 6% year over year to C$609.9 million, up 5% on a constant currency basis.
On the U.S. dollar basis, revenues of $448.120 million missed the analyst consensus of $460.22 million.
DTC revenue grew 14% to C$514.0 million, up 14% on a constant currency basis, driven by growth of in-store retail sales.
Wholesale revenue decreased by 28%, primarily due to a planned lower order book value resulting from lower orders from existing customers.
Revenue grew by 62% year-over-year in Asia Pacific, with higher sales across all channels. Revenue was down 26% in EMEA and fell 14% in North America, primarily due to the decline in e-commerce and wholesale revenue.
Gross profit grew 8% to C$449.7 million year over year, with margins expanding to 73.7% compared to 72.2% in the year-ago quarter due to pricing.
The adjusted EBIT was C$207.2 million, compared to C$197.1 million in the prior year.
Adjusted EPS was C$1.37 versus C$1.27 last year. USD adjusted EPS was $1.01, in line with the Street view.
Inventory was C$478.4 million as of December 31, 2023.
Outlook: For the fourth quarter, the company expects total revenue between C$310 million and C$330 million, and non-IFRS adjusted net income per diluted share between C$0.02 and C$0.13.
For FY24, the company expects total revenue of C$1.285 billion-C$1.305 billion (previous guidance of C$1.2 billion-C$1.4 billion).
The company projects Non-IFRS adjusted EPS of C$0.82-C$0.92 (previous guidance: C$0.60-C$1.40).
Price Action: GOOS shares are trading higher by 2.00% at $12.23 on the last check Thursday.
