Canada Goose’s sales soar 22 per cent, but losses also widen

Canada Goose winter jacket
Canada Goose has reported higher losses despite a double-digit sales growth. (Source: Canada Goose/Facebook)

Canada Goose has reported higher losses despite double-digit sales growth in the first quarter.

The brand’s revenue for the quarter ended June 29 jumped 22.4 per cent to CA$107.8 million ($78.3 million), with direct-to-consumer sales up 23.8 per cent and wholesale sales up 11.9 per cent.

However, operating loss increased 63 per cent to CA$158.7 million and net loss worsened by 62 per cent to CA$125.5 million. This was partly driven by higher spending on marketing campaigns and the expansion of the company’s retail footprint.

By geography, sales were up 2.5 per cent in Canada, 8.4 per cent in the US, 8.1 per cent in Apac, and 0.6 per cent in EMEA.

CEO Dani Reiss said during the conference call that the brand’s new lines of spring and summer clothing have attracted more customers and shifted its perception of a winter-only brand.

CFO Neil Bowden added that 75 per cent of the company’s products are made in Canada, making them exempt from US tariffs. However, it is paying a “modestly higher tariff” on its European products.

Last year, the company’s revenue soared 11 per cent to $1.34 billion and net income increased 63 per cent to $94.8 million.

Recommended By IR

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.