Canada Goose Holdings, Inc. Q1 FY2025 earnings call

Brand and Product Evolution

• Announced Haider Ackermann as the first Creative Director, launched the PBI Hoodie campaign with strong media and commercial results.
• Launched spring/summer collection with new styles and footwear, seeing strong consumer response.

Best-in-Class Retail Execution

• Focus on sales training, store operations, and product availability. Implemented in-depth product training for brand ambassadors, new bonus program, optimized store staffing and product presentations.

Operating with Simplicity

• Achieved operating excellence through headcount reductions, streamlined teams, and improved inventory levels. Reduced inventory by 7% year-over-year and improved inventory turns.

Revenue in the first quarter of Fiscal 2025 was $88.1 million, up 4% year-over-year. In the DTC channel, sales grew 13% or 12% on a constant currency basis. D2C comparable sales were down 4.4% year-over-year. Asia Pacific was the fastest-growing region with revenue up 25% year-over-year. Wholesale revenue decreased $11.1 million year-over-year, down 41% year-over-year on a constant currency basis. The Other segment's revenue increased to $9 million in Q1 FY2025 from $1.9 million in Q1 FY2024, including third-party sales from the European manufacturing facility acquired in Q3 FY2024.

Maintained fiscal 2025 guidance, expecting wholesale revenue to decrease 20% year-over-year full year. Expect gross margin to be similar to fiscal 2024. Focus on executing imperatives to drive comp performance in peak season.

• Macro-economic dynamics impacting consumer behavior.
• Volatility in the wholesale channel due to a soft business environment.
• Uncertainty in consumer spending in territories like Hong Kong, Macau, Taiwan.

Q: How is Haider integrating and progress?

A: Integration going extremely well, excited about his work, next milestone is the fall capsule collection launching before holiday.

Q: Efforts outside heavyweight category?

A: Apparel, windwear, and footwear showing strong demand, expect heavyweight down to grow, with opportunities in footwear, accessories, and knitwear.

Q: D2C comp sales cadence?

A: Expect positive comps in peak season to reach the low single-digit guide for the year.

Q: China territory differences?

A: Mainland China and Japan are strong, while Hong Kong, Macau, and Taiwan are under pressure, and Japan tourism is affected by the yen weakness.

Q: Retail execution impact on margins?

A: Focus on driving top-line revenue, seeing green shoots, but effect on margins will take time.

Q: Pricing response and confidence?

A: Cautious on pricing, evaluate market, confident in value proposition with quality products.

Q: Wholesale channel plan?

A: Elevating the wholesale channel, tightening supply, moving to the luxury floor, expecting a 20% decrease full year.

Q: Creative director hire?

A: Right inflection point, Haider brings global luxury brand capabilities, expected to take the brand to the next level.