Canada Goose loses profitability by October and lowers its outlook

Canada Goose, double speed. The Canadian fashion company ended the first six months of this year (period closed on October 2) with sales growth of 20 percent, to 347.1 million Canadian dollars (257.8 million euros). After the results, the company lowered its forecasts for the end of the year.

Moreover, the the company lost profitability during the period. In the first six months of this year, the company recorded a negative operating result of 90.2 million Canadian dollars (66.9 million euros), compared to losses of 73.6 million Canadian dollars (54.6 million euros) in the same period last year. .

The company’s net losses also widened in the first six monthsto C$58.6 million (€43.5 million), compared with red figures of C$47.6 million (€35.3 million) for the same period in 2021.

For a complete workout, the company lowered its forecasts, which are now going through sales registrations of between C$1,200 million (€891.3 million) and C$1,300 million (€965.5 million). The company’s previous estimates put turnover at the end of the year between 1,300 million Canadian dollars (965.5 million euros) and 1,400 million Canadian dollars (1,039.8 million euros).

“Given the scope of the Covid Zero policy measures in China, as well as the uncertain global macroeconomic context, we have revised our outlook for the financial year 2023,” said Dani Reyes, the company’s president and CEO in the presentation of the results. .

The group’s views are based on the gradual abolition of measures to curb the progression of the pandemic, that closures in China were reduced and that revenues in the Japanese market improved thanks to sales growth through own stores. Moreover, in Japan, the company has just created a joint venture with a local group to manage its multi-brand outlet network.

Only in the second trimester of exercise, Canada Goose increased its sales by 19% and improved its gross profit by 22.8%. The company explained that during the period “the strength of the US dollar against the Canadian dollar was offset by the depreciation of the pound sterling and the euro” ·

by markets, group sales in Canada increased by 25.2%, while in the United States sales increased by 20.3%, and in Europe by another 34.4%. In contrast, in the Asia-Pacific region, the company’s revenue fell by 4.2% due to the shutdown in China.

Observed by distribution channels, sales of Canada Goose through its own stores recorded a growth of 15.6% in the second quarter of the year, while turnover in the multibrand increased by 21.2% in the period .

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