Canada Goose Holdings Inc. Q3 FY2025 earnings call

Brand and Product Evolution - Launched the Snow Goose capsule collection by Haider Ackermann in November, with over 30 billion media impressions, 25% of Snow Goose purchasers also bought mainline products, nearly two-thirds of existing customers returned, and key fashion capitals saw follower growth. - Mainline collection had a robust presence in film and entertainment, and brand ambassador Shai Gilgeous-Alexander embodied the brand's style and performance. ### Regional Execution - Focused on inventory management, labor optimization, and sales training to drive improvements in store conversion rates in North America and EMEA. - In Asia Pacific, saw positive momentum during key shopping periods, with Japan opening more concessions and DTC improving significantly. ### Simplifying Operations - Streamlined operations, managed operating expenses, and inventory improved significantly with fifth consecutive quarter of decreases. Marketing initiatives like the Snow Goose campaign gained traction.

Third quarter revenue was $608 million, slightly below last year's $610 million. DTC revenue increased to $518 million from $514 million in the prior year, reflecting sales from 74 permanent stores (up from 65 in Q3 fiscal 2024). DTC comparable sales declined 6%, but North America saw positive comparable sales in October and December. Wholesale revenue declined 8% on reported and constant currency bases. Other revenue was $14.4 million, essentially flat from $14.1 million last year. DTC contributed approximately 85.2% of total revenue, Wholesale around 13.1%, and Other around 2.3%.

Revenue - Maintained full year revenue guidance between low-single-digit increase to low-single-digit decline compared to fiscal 2024. ### DTC Comparable Sales - Adjusted DTC comparable sales outlook to range between flat growth to mid-single-digit decrease from previous low-single-digit increase to low-single-digit decrease. ### Wholesale - Wholesale revenue outlook unchanged with expected decrease of approximately 20% year-over-year. ### EBIT Margin - Adjusted EBIT margin expected to range between flat to down 100 basis points compared to prior year, revising from previous range of increase of 60 basis points to decline of 60 basis points. ### Earnings Per Share - Non-IFRS adjusted income per diluted share expected to range between low-single-digit increase to flat.

Macro Factors - Macro factors influencing consumer behavior in certain markets, affecting retail traffic and sales. ### Market Uncertainty - Uncertainty in global economic conditions posing challenges to maintaining full price positioning in the wholesale channel and overall business performance.

Q: About the revenue guide and DTC comp sales forecast.

A: Neil Bowden explained that there was conservatism in the DTC comp sales forecast due to not enough time left in the year to meet original expectations, and other revenue was expected to be materially similar to last year.

Q: About the 22% comp in North America in December and January momentum.

A: Carrie Baker said the 22% comp in December in North America was due to well-trained teams, executed initiatives, and marketing activation; Dani Reiss noted January had positive comps with Asia timing shift and continued momentum.

Q: About brand resonance in Chinese consumer and wholesale channel outlook.

A: Carrie Baker said the Chinese consumer response to the Snow Goose capsule was strong with existing customers, and macro environment pressured but momentum in invested markets; wholesale conversations with partners were positive with strong sell-throughs.

Q: About key learnings from new product initiatives, traffic, and pricing.

A: Dani Reiss and Carrie Baker discussed learnings from the Snow Goose launch, traffic growth in e-commerce and Douyin, and ongoing pricing research based on consumer value proposition.