NEW YORK, April 18, 2024 (GLOBE NEWSWIRE) -- Levi & Korsinsky notifies investors that it has commenced an investigation of Canada Goose Holdings Inc. ("Canada Goose") (NYSE:GOOS) concerning possible violations of federal securities laws. On March 26, 2024, Canada Goose issued a press release announcing the "reduction of approximately 17% of corporate roles" as part of a transformation program, including, among other things, the departure of the Company's Chief Operating Officer. On this news, Canada Goose's ...

NEW YORK, April 11, 2024 (GLOBE NEWSWIRE) -- Levi & Korsinsky notifies investors that it has commenced an investigation of Canada Goose Holdings Inc. ("Canada Goose") (NYSE:GOOS) concerning possible violations of federal securities laws. On March 26, 2024, Canada Goose issued a press release announcing the "reduction of approximately 17% of corporate roles" as part of a transformation program, including, among other things, the departure of the Company's Chief Operating Officer. On this news, Canada Goose's ...

NEW YORK, April 04, 2024 (GLOBE NEWSWIRE) -- Levi & Korsinsky notifies investors that it has commenced an investigation of Canada Goose Holdings Inc. ("Canada Goose") (NYSE:GOOS) concerning possible violations of federal securities laws. On March 26, 2024, Canada Goose issued a press release announcing the "reduction of approximately 17% of corporate roles" as part of a transformation program, including, among other things, the departure of the Company's Chief Operating Officer. On this news, Canada Goose's ...

[Condensed Consolidated Interim Statements of Income](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Income) The company achieved revenue and gross profit growth in both the third quarter and the nine months ended December 31, 2023; however, net income and earnings per share (basic and diluted) decreased in both periods due to significant increases in selling, general and administrative expenses and net interest, finance and other costs Third Quarter Financial Performance (Millions of CAD) | Indicator | As of Dec 31, 2023 | As of Jan 1, 2023 | Change (%) | | :----------------------------- | :-------------------------- | :-------------------------- | :--------- | | Revenue | 609.9 | 576.7 | 5.76% | | Cost of Sales | 160.2 | 160.3 | -0.06% | | Gross Profit | 449.7 | 416.4 | 7.99% | | Selling, General and Administrative Expenses | 250.9 | 225.7 | 11.17% | | Operating Profit | 198.8 | 190.7 | 4.25% | | Net Interest, Finance and Other Costs | 14.8 | 2.4 | 516.67% | | Profit Before Income Tax | 184.0 | 188.3 | -2.28% | | Income Tax Expense | 52.6 | 50.8 | 3.54% | | Net Income | 131.4 | 137.5 | -4.44% | | Net Income Attributable to Company Shareholders | 130.6 | 134.9 | -3.26% | | Basic Earnings Per Share | 1.30 | 1.28 | 1.56% | | Diluted Earnings Per Share | 1.29 | 1.28 | 0.78% | Nine Months Financial Performance (Millions of CAD) | Indicator | As of Dec 31, 2023 | As of Jan 1, 2023 | Change (%) | | :----------------------------- | :-------------------------- | :-------------------------- | :--------- | | Revenue | 975.8 | 923.8 | 5.63% | | Cost of Sales | 291.4 | 298.9 | -2.51% | | Gross Profit | 684.4 | 624.9 | 9.52% | | Selling, General and Administrative Expenses | 583.0 | 494.9 | 17.80% | | Operating Profit | 101.4 | 130.0 | -21.99% | | Net Interest, Finance and Other Costs | 42.9 | 31.9 | 34.48% | | Profit Before Income Tax | 58.5 | 98.1 | -40.40% | | Income Tax Expense | 8.0 | 19.2 | -58.33% | | Net Income | 50.5 | 78.9 | -36.00% | | Net Income Attributable to Company Shareholders | 53.4 | 75.8 | -29.55% | | Basic Earnings Per Share | 0.52 | 0.72 | -27.78% | | Diluted Earnings Per Share | 0.52 | 0.72 | -27.78% | - For the nine months ended December 31, 2023, selling, general and administrative expenses increased by **17.8%** from **CAD 494.9 million** to **CAD 583.0 million**, while net interest, finance and other costs rose by **34.48%** from **CAD 31.9 million** to **CAD 42.9 million**[2](index=2&type=chunk) [Condensed Consolidated Interim Statements of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Comprehensive%20Income) Comprehensive income for the third quarter ended December 31, 2023, decreased by 17.76% year-over-year to **CAD 130.6 million**, and for the nine months, it fell by 52.00% to **CAD 48.0 million**, primarily due to reduced net income and a shift to losses in other comprehensive income, notably from cumulative translation adjustments and net losses on derivatives Comprehensive Income (Millions of CAD) | Period | As of Dec 31, 2023 | As of Jan 1, 2023 | Change (%) | | :------------------- | :----------- | :---------- | :--------- | | Third Quarter | 130.6 | 158.8 | -17.76% | | Nine Months | 48.0 | 100.0 | -52.00% | - In the third quarter, cumulative translation adjustments decreased from **CAD 22.5 million** to **CAD 6.7 million**, and net losses on derivatives designated as cash flow hedges increased from **CAD 4.6 million** to **CAD 7.5 million**[4](index=4&type=chunk) [Condensed Consolidated Interim Statements of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Financial%20Position) As of December 31, 2023, total assets decreased from **CAD 1,703.0 million** on January 1, 2023, to **CAD 1,601.9 million**, primarily due to a significant reduction in cash, while total liabilities remained relatively stable and total equity declined from **CAD 498.1 million** to **CAD 400.9 million**, mainly influenced by share repurchase activities Financial Position (Millions of CAD) | Indicator | As of Dec 31, 2023 | As of Jan 1, 2023 | As of Apr 2, 2023 | | :-------------------------- | :----------- | :---------- | :------------ | | Total Assets | 1,601.9 | 1,703.0 | 1,590.0 | | Total Liabilities | 1,201.0 | 1,204.9 | 1,112.5 | | Total Equity | 400.9 | 498.1 | 477.5 | - As of December 31, 2023, cash decreased by **55.17%** from **CAD 344.2 million** on January 1, 2023, to **CAD 154.3 million**, while trade receivables increased by **19.52%** from **CAD 120.9 million** to **CAD 144.5 million**, and inventories slightly decreased by **0.75%** to **CAD 478.4 million**[6](index=6&type=chunk) - As of December 31, 2023, short-term borrowings decreased by **26.15%** from **CAD 52.4 million** on January 1, 2023, to **CAD 38.7 million**, and term loans decreased by **3.15%** from **CAD 393.4 million** to **CAD 381.0 million**[6](index=6&type=chunk) [Condensed Consolidated Interim Statements of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Equity) Total equity decreased from **CAD 477.5 million** on April 2, 2023, to **CAD 400.9 million** on December 31, 2023, primarily due to significant repurchases of subordinate voting shares under a Normal Course Issuer Bid (NCIB), reducing share capital and retained earnings, partially offset by net income and share-based payments Total Equity (Millions of CAD) | Period | Amount | | :------------------- | :----------- | | Balance as of Apr 2, 2023 | 477.5 | | Balance as of Dec 31, 2023 | 400.9 | | Balance as of Jan 1, 2023 | 498.1 | - From April 2, 2023, to December 31, 2023, repurchases of subordinate voting shares under the Normal Course Issuer Bid resulted in a **CAD 110.5 million** reduction (allocated to share capital and retained earnings), with net income at **CAD 53.4 million** and share-based payments at **CAD 11.2 million**[7](index=7&type=chunk) [Condensed Consolidated Interim Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) For the nine months ended December 31, 2023, net cash from operating activities decreased to **CAD 81.8 million** from **CAD 109.3 million** in the prior year, while net cash used in investing activities significantly increased due to property, plant, and equipment acquisitions and business combinations, and net cash used in financing activities also rose sharply due to increased share repurchases and revolving credit facility repayments, resulting in an overall cash decrease of **CAD 132.2 million** for the period Summary of Cash Flows (Nine Months, Millions of CAD) | Activity | As of Dec 31, 2023 | As of Jan 1, 2023 | Change (%) | | :----------------------------- | :----------- | :---------- | :--------- | | Net Cash from Operating Activities | 81.8 | 109.3 | -25.16% | | Net Cash Used in Investing Activities | (59.7) | (21.4) | 178.04% | | Net Cash Used in Financing Activities | (153.3) | (35.3) | 334.28% | | Increase (Decrease) in Cash | (132.2) | 56.5 | -333.98% | - In operating activities, net income decreased from **CAD 78.9 million** to **CAD 50.5 million**, and changes in non-cash operating items shifted from **(CAD 48.1 million)** to **(CAD 32.2 million)**[9](index=9&type=chunk) - In investing activities, the acquisition of property, plant, and equipment increased from **(CAD 22.9 million)** to **(CAD 46.3 million)**, and net cash outflow from business combinations was **(CAD 12.3 million)**, compared to an inflow of **CAD 2.8 million** in the prior period[9](index=9&type=chunk) - In financing activities, repurchases of subordinate voting shares under the Normal Course Issuer Bid increased from **(CAD 16.1 million)** to **(CAD 111.7 million)**, and revolving credit facility repayments increased from **(CAD 0.5 million)** to **CAD 0** (with significant activity during the quarter)[9](index=9&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed disclosures on the company's accounting policies, business combinations, segment performance, financial instruments, and risk management strategies, offering crucial context to the interim financial statements [Note 1. The Company](index=7&type=section&id=Note%201.%20The%20Company) Canada Goose Holdings Inc. designs, manufactures, and sells performance luxury apparel, listed on the TSX and NYSE, operating through Direct-to-Consumer (DTC), Wholesale, and Other segments, with revenue and operating profit significantly impacted by seasonality, where DTC and Wholesale contribute most revenue in specific quarters - The company designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies, including parkas, lightweight down, rainwear, windwear, apparel, fleece, footwear, and accessories[11](index=11&type=chunk) - The company is listed on the Toronto Stock Exchange and the New York Stock Exchange under the ticker symbol "GOOS," with major shareholders including Bain Capital LP and its affiliates, and DTR LLC (indirectly controlled by the company's Chairman and CEO)[12](index=12&type=chunk) - The company's operations are divided into three reportable operating segments: Direct-to-Consumer (DTC), Wholesale, and Other, where the DTC segment includes sales through e-commerce platforms and company-owned retail stores, the Wholesale segment includes sales to retailers and international distributors, and the Other segment includes employee sales, friends and family sales, SG&A expenses, and the newly acquired Paola Confectii business[16](index=16&type=chunk)[17](index=17&type=chunk)[19](index=19&type=chunk) - The company's business is seasonal, with wholesale revenue and operating profit primarily concentrated in the second and third fiscal quarters, and DTC revenue and operating profit mainly in the third and fourth quarters, while cash flows from operating activities are typically highest in the third and fourth quarters[20](index=20&type=chunk)[21](index=21&type=chunk) [Note 2. Material accounting policy information and critical accounting estimates and judgments](index=8&type=section&id=Note%202.%20Material%20accounting%20policy%20information%20and%20critical%20accounting%20estimates%20and%20judgments) The interim financial statements are prepared in accordance with IAS 34, maintaining consistent accounting policies with annual statements, except for the reclassification of foreign exchange gains and losses related to term loans, while the company assesses the potential impact of IAS 1 amendments on liability classification and has adopted the IAS 12 amendment for Pillar Two model rules exemption - The interim financial statements are prepared in accordance with International Accounting Standard (IAS) 34, "Interim Financial Reporting"[13](index=13&type=chunk) - Certain comparative data has been reclassified to re-present foreign exchange gains and losses (net of hedging) related to the outstanding principal balance of term loans from selling, general and administrative expenses to net interest, finance and other costs, with no impact on net income, earnings per share, or the condensed consolidated interim statements of financial position[23](index=23&type=chunk) - The International Accounting Standards Board (IASB) issued amendments to IAS 1, "Presentation of Financial Statements," clarifying liability presentation requirements in the statement of financial position, effective for annual reporting periods beginning on or after January 1, 2024, which the company is currently evaluating for potential impact[27](index=27&type=chunk) - The company has adopted the IAS 12, "Income Taxes," amendments issued by the IASB in May 2023, which provide a temporary mandatory exception from recognizing and disclosing deferred tax assets and liabilities arising from the OECD Pillar Two international tax reform[29](index=29&type=chunk) [Note 3. Business combination](index=9&type=section&id=Note%203.%20Business%20combination) On November 1, 2023, Canada Goose acquired the business of luxury knitwear manufacturer Paola Confectii SRL for **CAD 16.4 million** in cash, aiming to enhance product margins, supply chain control, and in-house expertise, with **CAD 13.5 million** in goodwill initially recognized and an estimated **CAD 6.6 million** earn-out payable to the seller over two years based on future performance and continued employment - On November 1, 2023, the company's newly formed subsidiary, Paola Confectii Manufacturing Limited, acquired the business of Paola Confectii SRL, a luxury knitwear manufacturer, for **CAD 16.4 million** in cash[30](index=30&type=chunk) - This acquisition is expected to enhance product margins and supply chain control while deepening in-house product expertise and capabilities[30](index=30&type=chunk) - Goodwill of **CAD 13.5 million** was provisionally recognized at the acquisition date, primarily attributable to the strengthening of the vertically integrated supply chain and the anticipated future growth potential in the knitwear category[33](index=33&type=chunk) - An additional earn-out, estimated at **CAD 6.6 million**, is payable to Paola Confectii SRL's controlling shareholder (PCML supplier) over two years, expensed as compensation cost, contingent on continued employment until November 1, 2025, and specific performance conditions[34](index=34&type=chunk) - Paola Confectii's results have been consolidated into the company's financial performance since the acquisition date and are reported within the company's "Other" operating segment[36](index=36&type=chunk) [Note 4. Segment information](index=11&type=section&id=Note%204.%20Segment%20information) For the third quarter and nine months ended December 31, 2023, the DTC segment experienced strong revenue growth while wholesale revenue declined, leading to increased DTC operating profit but continued significant operating losses in the 'Other' segment, resulting in a decrease in total operating profit for the nine months, with strong APAC revenue growth offsetting declines in North America and EMEA Third Quarter Segment Performance (Millions of CAD) | Segment | Revenue as of Dec 31, 2023 | Revenue as of Jan 1, 2023 | Revenue Change (%) | Operating Profit (Loss) as of Dec 31, 2023 | Operating Profit (Loss) as of Jan 1, 2023 | Operating Profit Change (%) | | :-------- | :------------------- | :------------------ | :----------------- | :----------------------------------- | :---------------------------------- | :-------------------------- | | DTC | 514.0 | 450.2 | 14.17% | 287.1 | 258.8 | 10.93% | | Wholesale | 81.8 | 114.4 | -28.49% | 25.9 | 38.8 | -33.25% | | Other | 14.1 | 12.1 | 16.53% | (114.2) | (106.9) | -6.83% | | Total | 609.9 | 576.7 | 5.76% | 198.8 | 190.7 | 4.25% | Nine Months Segment Performance (Millions of CAD) | Segment | Revenue as of Dec 31, 2023 | Revenue as of Jan 1, 2023 | Revenue Change (%) | Operating Profit (Loss) as of Dec 31, 2023 | Operating Profit (Loss) as of Jan 1, 2023 | Operating Profit Change (%) | | :-------- | :------------------- | :------------------ | :----------------- | :----------------------------------- | :---------------------------------- | :-------------------------- | | DTC | 679.2 | 579.8 | 17.14% | 293.4 | 265.4 | 10.55% | | Wholesale | 270.9 | 328.3 | -17.48% | 99.0 | 118.5 | -16.46% | | Other | 25.7 | 15.7 | 63.69% | (291.0) | (253.9) | -14.61% | | Total | 975.8 | 923.8 | 5.63% | 101.4 | 130.0 | -21.99% | Nine Months Geographical Revenue (Millions of CAD) | Region | As of Dec 31, 2023 | As of Jan 1, 2023 | Change (%) | | :------------ | :----------- | :---------- | :--------- | | North America | 418.1 | 458.5 | -8.79% | | Asia Pacific | 359.0 | 240.1 | 49.52% | | Europe, Middle East, Africa and Latin America (EMEA) | 198.7 | 225.2 | -11.77% | | Total Revenue | 975.8 | 923.8 | 5.63% | [Note 5. Earnings per share](index=13&type=section&id=Note%205.%20Earnings%20per%20share) For the third quarter ended December 31, 2023, basic and diluted earnings per share saw a slight year-over-year increase, but for the nine months, both basic and diluted EPS significantly decreased, primarily due to lower net income attributable to company shareholders and a reduced weighted average number of outstanding shares Earnings Per Share (CAD) | Indicator | As of Dec 31, 2023 (Q3) | As of Jan 1, 2023 (Q3) | As of Dec 31, 2023 (9 Months) | As of Jan 1, 2023 (9 Months) | | :--- | :----------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Basic | 1.30 | 1.28 | 0.52 | 0.72 | | Diluted | 1.29 | 1.28 | 0.52 | 0.72 | Weighted Average Number of Outstanding Shares | Indicator | As of Dec 31, 2023 (9 Months) | As of Jan 1, 2023 (9 Months) | | :--- | :----------------------------- | :-------------------------- | | Basic | 102,144,232 | 105,238,509 | | Diluted | 103,125,365 | 105,778,351 | [Note 6. Trade receivables](index=13&type=section&id=Note%206.%20Trade%20receivables) As of December 31, 2023, total trade receivables increased to **CAD 144.5 million** from **CAD 120.9 million** on January 1, 2023, primarily driven by increases in trade accounts receivable and credit card receivables Trade Receivables (Millions of CAD) | Indicator | As of Dec 31, 2023 | As of Jan 1, 2023 | As of Apr 2, 2023 | | :-------------------------------- | :----------- | :---------- | :------------ | | Trade Accounts Receivable | 129.4 | 103.3 | 30.4 | | Credit Card Receivables | 7.5 | 5.8 | 2.5 | | Other Receivables | 9.3 | 13.5 | 19.5 | | Less: Expected Credit Losses and Sales Allowances | (1.7) | (1.7) | (1.5) | | **Total Trade Receivables** | **144.5** | **120.9** | **50.9** | [Note 7. Inventories](index=14&type=section&id=Note%207.%20Inventories) As of December 31, 2023, total inventories remained relatively stable at **CAD 478.4 million** compared to **CAD 482.0 million** on January 1, 2023, but inventory write-downs significantly increased from **CAD 32.7 million** to **CAD 51.0 million**, primarily due to higher provisions for slow-moving raw materials and finished goods Inventories (Millions of CAD) | Indicator | As of Dec 31, 2023 | As of Jan 1, 2023 | As of Apr 2, 2023 | | :------------------------------------------ | :----------- | :---------- | :------------ | | Raw Materials | 48.9 | 71.3 | 60.3 | | Work-in-Progress | 23.0 | 15.4 | 17.5 | | Finished Goods | 406.5 | 395.3 | 394.8 | | **Total Inventories at the Lower of Cost and Net Realizable Value** | **478.4** | **482.0** | **472.6** | Inventory Write-Downs (Millions of CAD) | Indicator | As of Dec 31, 2023 | As of Jan 1, 2023 | As of Apr 2, 2023 | | :-------------------------------- | :----------- | :---------- | :------------ | | Raw Material Obsolescence Provision | 0.2 | — | 0.2 | | Finished Goods Obsolescence Provision | 0.9 | 0.8 | 0.4 | | Raw Material Slow-Moving Inventory Provision | 21.4 | 12.9 | 20.5 | | Finished Goods Slow-Moving Inventory Provision | 28.5 | 19.0 | 22.1 | | **Total Inventory Write-Downs** | **51.0** | **32.7** | **43.2** | [Note 8. Leases](index=15&type=section&id=Note%208.%20Leases) As of December 31, 2023, the net book value of right-of-use assets slightly adjusted from **CAD 275.6 million** on January 1, 2023, to **CAD 272.7 million**, influenced by new leases, business combinations, depreciation, and foreign currency translation, while lease liabilities also marginally increased from **CAD 316.9 million** to **CAD 321.3 million** during the same period Net Book Value of Right-of-Use Assets (Millions of CAD) | Period | Amount | | :------------------- | :----------- | | As of Dec 31, 2023 | 272.7 | | As of Jan 1, 2023 | 275.6 | | As of Apr 2, 2023 | 291.8 | - From April 2, 2023, to December 31, 2023, right-of-use asset costs increased by **CAD 28.2 million**, business combinations added **CAD 1.2 million**, lease modifications added **CAD 11.4 million**, and derecognitions reduced by **CAD 5.8 million**[49](index=49&type=chunk) Total Lease Liabilities (Millions of CAD) | Period | Amount | | :------------------- | :----------- | | As of Dec 31, 2023 | 321.3 | | As of Jan 1, 2023 | 316.9 | | As of Apr 2, 2023 | 334.8 | Lease Liabilities Classification (As of Dec 31, 2023, Millions of CAD) | Classification | Amount | | :------------------- | :----------- | | Current Lease Liabilities | 76.4 | | Non-Current Lease Liabilities | 244.9 | [Note 9. Accounts payable and accrued liabilities](index=18&type=section&id=Note%209.%20Accounts%20payable%20and%20accrued%20liabilities) As of December 31, 2023, accounts payable and accrued liabilities increased to **CAD 268.8 million** from **CAD 262.0 million** on January 1, 2023, primarily driven by higher employee benefits and the recognition of ASPP liabilities, partially offset by reductions in trade payables and other payables Accounts Payable and Accrued Liabilities (Millions of CAD) | Indicator | As of Dec 31, 2023 | As of Jan 1, 2023 | As of Apr 2, 2023 | | :-------------------------------- | :----------- | :---------- | :------------ | | Trade Payables | 60.0 | 72.7 | 60.1 | | Accrued Liabilities | 107.9 | 119.0 | 82.4 | | Employee Benefits | 34.4 | 24.1 | 21.9 | | Derivative Financial Instruments | 3.8 | 7.4 | 3.3 | | ASPP Liabilities (Note 12) | 43.1 | — | 20.0 | | Other Payables | 19.6 | 38.8 | 7.9 | | **Total** | **268.8** | **262.0** | **195.6** | [Note 10. Provisions](index=18&type=section&id=Note%2010.%20Provisions) As of December 31, 2023, total provisions increased to **CAD 92.2 million** from **CAD 83.3 million** on January 1, 2023, primarily due to a significant rise in sales return provisions from **CAD 40.6 million** to **CAD 47.7 million** and an increase in asset retirement obligations Provisions (Millions of CAD) | Indicator | As of Dec 31, 2023 | As of Jan 1, 2023 | As of Apr 2, 2023 | | :---------------------- | :----------- | :---------- | :------------ | | Warranty | 30.6 | 33.0 | 30.4 | | Sales Returns | 47.7 | 40.6 | 15.6 | | Asset Retirement Obligations | 13.9 | 9.7 | 12.1 | | **Total** | **92.2** | **83.3** | **58.1** | [Note 11. Borrowings](index=19&type=section&id=Note%2011.%20Borrowings) In Q1 FY2024, the company transitioned its USD-denominated financing instruments and contracts from LIBOR to SOFR and extended its revolving credit facility to May 15, 2028; as of December 31, 2023, the facility had no outstanding balance and **CAD 359.4 million** in unused borrowing capacity, with **USD 291.0 million** in outstanding term loan principal and **CAD 9.3 million** and **CAD 25.4 million** outstanding on China and Japan financing instruments, respectively, while net interest, finance and other costs significantly increased to **CAD 42.9 million** for the nine months ended December 31, 2023, driven by higher interest expenses on term loans and lease liabilities, and fair value remeasurement of put option liabilities - The company transitioned its USD-denominated financing instruments and contracts from LIBOR to SOFR in the first quarter of fiscal 2024 and extended the maturity of its revolving credit facility to May 15, 2028, on June 30, 2023[55](index=55&type=chunk) - As of December 31, 2023, the revolving credit facility had no outstanding balance and an available borrowing capacity of **CAD 359.4 million**[59](index=59&type=chunk)[60](index=60&type=chunk) - The term loan has a total principal of **USD 300.0 million**, with **USD 291.0 million** outstanding as of December 31, 2023, and the company is in compliance with all loan covenants[63](index=63&type=chunk)[64](index=64&type=chunk) - As of December 31, 2023, the China financing instrument had **CAD 9.3 million** (RMB 50.0 million) outstanding, and the Japan financing instrument had **CAD 25.4 million** (JPY 2.7 billion) outstanding[66](index=66&type=chunk)[68](index=68&type=chunk) Net Interest, Finance and Other Costs (Nine Months, Millions of CAD) | Indicator | As of Dec 31, 2023 | As of Jan 1, 2023 | Change (%) | | :------------------------------------------ | :----------- | :---------- | :--------- | | Interest Expense (Total) | 31.4 | 23.5 | 33.62% | | Foreign Exchange Loss (Gain) on Term Loan, Net of Hedging | — | 11.7 | -100.00% | | Fair Value Remeasurement of Put Option Liability | 15.7 | 1.2 | 1208.33% | | Fair Value Remeasurement of Contingent Consideration | (4.9) | (5.9) | 16.95% | | **Total Net Interest, Finance and Other Costs** | **42.9** | **31.9** | **34.48%** | [Note 12. Shareholders' equity](index=22&type=section&id=Note%2012.%20Shareholders'%20equity) The company initiated a FY2024 Normal Course Issuer Bid (NCIB) to repurchase up to **4,980,505** subordinate voting shares, with **1,862,550** shares repurchased for **CAD 29.5 million** in cash by December 31, 2023; these repurchases, combined with those under the FY2023 NCIB, significantly reduced total share capital and retained earnings, leading to a decrease in total equity - The Board of Directors authorized the company to commence a fiscal 2024 Normal Course Issuer Bid (NCIB) to repurchase up to **4,980,505** subordinate voting shares between November 22, 2023, and November 21, 2024[71](index=71&type=chunk) - For the nine months ended December 31, 2023, the company repurchased and cancelled **1,862,550** subordinate voting shares under the FY2024 NCIB for a total cash consideration of **CAD 29.5 million**[73](index=73&type=chunk) - For the nine months ended December 31, 2023, the company repurchased and cancelled **4,268,883** subordinate voting shares under the FY2023 NCIB for a total cash consideration of **CAD 83.3 million**[77](index=77&type=chunk) Share Capital Movement (April 2, 2023, to December 31, 2023, Millions of CAD) | Indicator | Multiple Voting Shares (Number) | Multiple Voting Shares (Amount) | Subordinate Voting Shares (Number) | Subordinate Voting Shares (Amount) | Total (Number) | Total (Amount) | | :-------------------------------- | :----------------- | :----------------- | :----------------- | :----------------- | :----------- | :----------- | | Balance as of Apr 2, 2023 | 51,004,076 | 1.4 | 53,184,912 | 117.3 | 104,188,988 | 118.7 | | Purchase of Subordinate Voting Shares | — | — | (5,987,741) | (13.6) | (5,987,741) | (13.6) | | Purchase and Cancellation of Subordinate Voting Shares | — | — | (143,692) | (0.3) | (143,692) | (0.3) | | **Total Share Purchases** | **—** | **—** | **(6,131,433)** | **(13.9)** | **(6,131,433)** | **(13.9)** | | Exercise of Stock Options | — | — | 36,350 | 0.2 | 36,350 | 0.2 | | Settlement of Restricted Share Units | — | — | 134,475 | 3.8 | 134,475 | 3.8 | | **Total Share Issuances** | **—** | **—** | **170,825** | **4.0** | **170,825** | **4.0** | | Balance as of Dec 31, 2023 | 51,004,076 | 1.4 | 47,224,304 | 107.4 | 98,228,380 | 108.8 | [Note 13. Share-based payments](index=24&type=section&id=Note%2013.%20Share-based%20payments) For the nine months ended December 31, 2023, the company granted **758,327** stock options, **376,543** Restricted Share Units (RSUs), and **399,349** Performance Share Units (PSUs), with share-based payment expense totaling **CAD 11.5 million**, slightly up from **CAD 11.2 million** in the prior year Stock Option Transactions (Nine Months, Number of Shares) | Indicator | As of Dec 31, 2023 | As of Jan 1, 2023 | | :----------------------- | :----------------- | :----------------- | | Options Outstanding at Beginning of Period | 4,055,199 | 2,722,690 | | Granted | 758,327 | 1,580,506 | | Exercised | (36,350) | (60,248) | | Forfeited | (303,217) | (146,079) | | Options Outstanding at End of Period | 4,473,959 | 4,096,869 | Restricted Share Unit (RSU) Transactions (Nine Months, Number of Shares) | Indicator | As of Dec 31, 2023 | As of Jan 1, 2023 | | :----------------------- | :----------------- | :----------------- | | RSUs Outstanding at Beginning of Period | 318,082 | 215,590 | | Granted | 376,543 | 209,187 | | Settled | (134,475) | (87,034) | | Forfeited | (38,599) | (14,039) | | RSUs Outstanding at End of Period | 521,551 | 323,704 | - The company implemented a Performance Share Unit (PSU) plan in May 2023, granting **399,349** PSUs for the nine months ended December 31, 2023, with **389,858** PSUs outstanding at period-end[83](index=83&type=chunk)[84](index=84&type=chunk) - For the third quarter and nine months ended December 31, 2023, the company recorded share-based payment expenses of **CAD 4.3 million** and **CAD 11.5 million**, respectively, compared to **CAD 4.2 million** and **CAD 11.2 million** in the prior periods[86](index=86&type=chunk) [Note 14. Related party transactions](index=26&type=section&id=Note%2014.%20Related%20party%20transactions) The company engaged in various related party transactions, including **CAD 0.8 million** in service fees paid to shareholder affiliates for the nine months ended December 31, 2023, **CAD 2.8 million** in lease liabilities related to Baffin Inc.'s former controlling shareholder, and **CAD 2.2 million** in lease liabilities and **CAD 1.2 million** in inventory sales with the Japan joint venture and Sazaby League, in addition to recognizing **CAD 0.5 million** in compensation costs for the Paola Confectii acquisition earn-out - For the third quarter and nine months ended December 31, 2023, the company paid **CAD 0.4 million** and **CAD 0.8 million**, respectively, in business services fees to certain shareholder affiliates[88](index=88&type=chunk) - As of December 31, 2023, lease liabilities payable to the former controlling shareholder of Baffin Inc. amounted to **CAD 2.8 million**[89](index=89&type=chunk) - As of December 31, 2023, lease liabilities related to the Japan joint venture with Sazaby League totaled **CAD 2.2 million**; for the nine months, the company paid **CAD 1.3 million** in principal and interest, royalties, and other operating costs to Sazaby League and sold **CAD 1.2 million** in inventory to a wholly-owned subsidiary of Sazaby League[90](index=90&type=chunk)[91](index=91&type=chunk) - For the nine months ended December 31, 2023, the company recognized **CAD 0.5 million** in compensation costs related to the Paola Confectii business combination earn-out, recorded in other long-term liabilities[94](index=94&type=chunk) [Note 15. Financial instruments and fair value](index=27&type=section&id=Note%2015.%20Financial%20instruments%20and%20fair%20value) The company's financial instruments include derivatives, borrowings, put option liabilities, and contingent consideration; as of December 31, 2023, term loans had a carrying value of **CAD 385.0 million** and a fair value of **CAD 421.7 million**, while the Japan joint venture's put option liabilities and contingent consideration were remeasured for the nine months ended December 31, 2023, with contingent consideration decreasing and put option liabilities increasing, primarily driven by contract term progression and improved market debt costs Financial Instruments (As of Dec 31, 2023, Millions of CAD) | Instrument | Carrying Value | Fair Value | | :------------------------------------------ | :------------- | :--------- | | Derivative Financial Assets | 24.9 | 24.9 | | Derivative Financial Liabilities | 16.0 | 16.0 | | China Financing Instrument | 9.3 | 9.3 | | Japan Financing Instrument | 25.4 | 25.4 | | Term Loan | 385.0 | 421.7 | | Put Option Liability | 45.7 | 45.7 | | Contingent Consideration | 10.6 | 10.6 | | Contingent Consideration (Note 3) | 0.5 | 0.5 | - For the nine months ended December 31, 2023, the Japan joint venture's contingent consideration remeasurement decreased by **JPY 529.7 million** (**CAD 1.5 million**, excluding **CAD 0.4 million** in foreign exchange gains), and the put option liability remeasurement increased by **JPY 1,707.4 million** (**CAD 13.6 million**, excluding **CAD 2.1 million** in foreign exchange losses), primarily driven by the progression of the 4-year and 10-year terms and improved market debt costs[99](index=99&type=chunk) [Note 16. Financial risk management objectives and policies](index=29&type=section&id=Note%2016.%20Financial%20risk%20management%20objectives%20and%20policies) The company manages capital, liquidity, credit, market, foreign exchange, and interest rate risks to protect assets and cash flows, maintaining liquidity through operating cash flows and credit facilities, mitigating credit risk via third-party insurance and internal monitoring, hedging foreign exchange risk with forward contracts for operational cash flows and borrowings, and partially hedging term loan interest rate risk with interest rate swaps that transitioned from LIBOR to SOFR in Q1 FY2024 - The company's primary risk management objective is to protect its assets and cash flows to enhance corporate value[101](index=101&type=chunk) - Liquidity risk is managed through funds generated from operating activities, as well as the China financing instrument, Japan financing instrument, and revolving credit facility, to ensure sufficient liquidity under both normal and stressed conditions[104](index=104&type=chunk) Contractual Obligations (As of Dec 31, 2023, Millions of CAD) | Obligation | Q4 FY2024 | FY2025 | FY2026 | FY2027 | FY2028 | FY2029 | Thereafter | Total | | :-------------------------------- | :------ | :--- | :--- | :--- | :--- | :--- | :--------- | :---- | | Accounts Payable and Accrued Liabilities | 268.8 | — | — | — | — | — | — | 268.8 | | China Financing Instrument | 9.3 | — | — | — | — | — | — | 9.3 | | Japan Financing Instrument | 25.4 | — | — | — | — | — | — | 25.4 | | Term Loan | 1.0 | 4.0 | 4.0 | 4.0 | 372.7 | — | — | 385.7 | | Borrowing-Related Interest Commitments | 8.7 | 34.9 | 34.6 | 34.6 | 17.3 | — | — | 130.1 | | Derivative Contracts | — | — | 5.5 | — | — | — | — | 5.5 | | Lease Obligations | 21.6 | 88.6 | 66.7 | 55.9 | 41.2 | 31.3 | 76.3 | 381.6 | | Pension Obligations | — | — | — | — | — | — | 2.0 | 2.0 | | **Total Contractual Obligations** | **334.8** | **127.5** | **110.8** | **94.5** | **431.2** | **31.3** | **78.3** | **1,208.4** | - Credit risk is managed through a combination of third-party credit insurance and internal risk management, with insurance covering specific amounts of trade receivables up to **CAD 30.0 million** annually[110](index=110&type=chunk)[111](index=111&type=chunk) - Foreign exchange risk is hedged through forward foreign exchange contracts to mitigate exposure related to revenue, purchases, and expenses denominated in USD, EUR, GBP, CHF, RMB, HKD, and JPY, as well as term loan principal and interest payments[116](index=116&type=chunk)[122](index=122&type=chunk) - Interest rate risk primarily arises from the China financing instrument, Japan financing instrument, and term loan, with the term loan's interest rate risk partially hedged through interest rate swap agreements that transitioned from LIBOR to SOFR on June 30, 2023[125](index=125&type=chunk)[126](index=126&type=chunk) - Based on the weighted average outstanding borrowing amounts, a 1.00% increase in average interest rates for the nine months ended December 31, 2023, would increase interest expense by **CAD 0.3 million** for the China financing instrument, **CAD 0.2 million** for the Japan financing instrument, and **CAD 3.0 million** for the term loan (pre-hedging)[127](index=127&type=chunk) [Note 17. Selected cash flow information](index=35&type=section&id=Note%2017.%20Selected%20cash%20flow%20information) For the nine months ended December 31, 2023, changes in non-cash operating items resulted in a **CAD 32.2 million** decrease, primarily influenced by trade receivables and inventory movements, while non-cash changes in financing activities were significant, including a **CAD 110.5 million** deduction from share capital and a **CAD 96.9 million** deduction from retained earnings due to share repurchases under the Normal Course Issuer Bid Non-Cash Operating Items Changes (Nine Months, Millions of CAD) | Item | As of Dec 31, 2023 | As of Jan 1, 2023 | | :-------------------------------- | :----------- | :---------- | | Trade Receivables | (86.7) | (75.0) | | Inventories | (5.5) | (60.0) | | Other Current Assets | (3.0) | (8.9) | | Accounts Payable and Accrued Liabilities | 27.6 | 66.9 | | Provisions | 33.9 | 33.9 | | Other | 1.5 | (5.0) | | **Total Non-Cash Operating Items Changes** | **(32.2)** | **(48.1)** | - From April 2, 2023, to December 31, 2023, changes in liabilities and equity from financing activities included **CAD 110.5 million** in cash outflow for subordinate voting share repurchases under the Normal Course Issuer Bid, a **CAD 96.9 million** deduction from retained earnings for share purchases, a **CAD 7.7 million** decrease in unrealized foreign exchange gains on term loans, and a **CAD 39.2 million** increase and modification of lease liabilities[129](index=129&type=chunk)

Condensed Consolidated Interim Statements of Income (Loss) (unaudited) Canada Goose Holdings Inc. Condensed Consolidated Interim Financial Statements As at and for the second and two quarters ended October 1, 2023 and October 2, 2022 (Unaudited) (in millions of Canadian dollars, except per share amounts) | | | | Second quarter ended | | | | Two quarters ended | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | October 1, | October 2, | | October 1, | October 2, | | | Notes | | 2023 | 2022 | | 2023 | ...

Canada Goose Holdings Inc. (NYSE:GOOS) Q1 2024 Results Conference Call August 3, 2023 8:30 AM ET Company Participants Ana Raman - Vice President, Investor Relations Dani Reiss - Chairman and CEO Jonathan Sinclair - EVP and CFO Carrie Baker - President Conference Call Participants Brooke Roach - Goldman Sachs Robert Ohmes - Bank of America Sam Poser - Williams Trading Jay Sole - UBS Jonathan Komp - Baird Ike Boruchow - Wells Fargo Operator Thank you for standing by. Welcome to Canada Goose First Quarter 2024 ...

Canada Goose Holdings Inc. Condensed Consolidated Interim Financial Statements As at and for the first quarter ended July 2, 2023 and July 3, 2022 (Unaudited) Condensed Consolidated Interim Statements of Loss (unaudited) (in millions of Canadian dollars, except per share amounts) | | | | | First quarter ended | | --- | --- | --- | --- | --- | | | | | July 2, | July 3, 2022 | | | Notes | | 2023 | | | | | | | Reclassified | | | | | $ | $ | | Revenue | 3 | | 84.8 | 69.9 | | Cost of sales | 6 | | 29.6 | 27.2 | ...

Financial Performance - For the fiscal year ended April 2, 2023, the company reported revenue of CAD $1,217.0 million, an increase of 10.8% from CAD $1,098.4 million in the previous year[204]. - Gross profit for the same period was CAD $815.2 million, resulting in a gross margin of 67.0%, slightly up from 66.8% in the prior year[204]. - The company recorded a net income of CAD $68.9 million for the year, down from CAD $94.6 million in the previous year, with earnings per share of CAD $0.69[204]. - Revenue for the year ended April 2, 2023 increased by CAD $118.6 million, or 10.8%, to CAD $1,217.0 million from CAD $1,098.4 million for the year ended April 3, 2022[221]. - Direct-to-Consumer (DTC) revenue for the year ended April 2, 2023 was CAD $807.3 million, an increase of CAD $66.9 million or 9.0% compared to CAD $740.4 million for the year ended April 3, 2022[224]. - Wholesale revenue for the year ended April 2, 2023 was CAD $373.8 million, an increase of CAD $25.3 million or 7.3% compared to CAD $348.5 million for the year ended April 3, 2022[226]. - Other segment revenue for the year ended April 2, 2023 was CAD $35.9 million, a significant increase of CAD $26.4 million or 277.9% compared to CAD $9.5 million for the year ended April 3, 2022[227]. - Operating income for the year ended April 2, 2023 was CAD $135.5 million, a decrease of CAD $21.2 million or 13.5% compared to CAD $156.7 million for the year ended April 3, 2022[220]. - Net income attributable to shareholders for the year ended April 2, 2023 was CAD $72.7 million, a decrease of CAD $21.9 million or 23.2% compared to CAD $94.6 million for the year ended April 3, 2022[220]. Segment Performance - The DTC segment includes sales through 57 e-Commerce markets and 51 retail stores, contributing significantly to overall revenue[203]. - DTC comparable sales growth experienced a decline of (2.6)%, although this was positive when excluding Mainland China[225]. - The DTC segment gross profit increased to $616.2 million with a gross margin of 76.3%, compared to $563.0 million and 76.0% in the prior year[234]. - The Wholesale segment gross profit increased to $185.7 million with a gross margin of 49.7%, compared to $166.5 million and 47.8% in the prior year[235]. - The DTC segment operating income was $359.4 million, with a slight decrease in operating margin to 44.5% from 45.0% in the previous year[246]. Cash Flow and Liquidity - Cash reserves as of April 2, 2023, were CAD $286.5 million, a slight decrease from CAD $287.7 million in the previous year[204]. - Cash flows from operating activities decreased to $116.3 million for the year ended April 2, 2023, down from $151.6 million in the previous year, a decline of $35.3 million[306]. - For the fourth quarter ended April 2, 2023, cash flows from operating activities increased to $7.0 million, compared to cash used of $22.6 million in the same quarter last year, an improvement of $29.6 million[307]. - Cash flows used in investing activities rose to $45.3 million for the year ended April 2, 2023, compared to $37.2 million in the previous year, an increase of $8.1 million[308]. - Cash flows used in financing activities decreased significantly to $80.7 million for the year ended April 2, 2023, from $298.2 million in the previous year, a reduction of $217.5 million[310]. Assets and Liabilities - As of April 2, 2023, total assets increased to CAD $1,590.0 million from CAD $1,340.6 million in the previous year[204]. - Net working capital increased by CAD $72.6 million, or 28.4%, to CAD $328.0 million as of April 2, 2023, compared to CAD $255.4 million in the previous year[301]. - Current assets increased by CAD $100.9 million, or 13.2%, to CAD $863.2 million as of April 2, 2023, compared to CAD $762.3 million in the previous year[301]. - As of April 2, 2023, net debt increased to $468.1 million, up from $333.8 million as of April 3, 2022, an increase of $134.3 million[316]. - The Company had unused borrowing capacity available under the Revolving Facility of $238.4 million as of April 2, 2023, compared to $191.8 million as of April 3, 2022[321]. Taxation - Effective tax rate for the year ended April 2, 2023 was 26.3%, an increase of 670 basis points compared to 19.6% for the year ended April 3, 2022[220]. - The effective tax rate for the quarter was (117.4)%, a significant change of (6,820) basis points compared to (49.2)% in the prior year[254]. - The effective tax rate for Q4 2023 was (117.4)%, compared to (49.2)% in Q4 2022, influenced by non-deductible remeasurement of contingent liabilities[276]. Foreign Exchange and Risk Management - The average USD/CAD exchange rate for Q4 2023 was 1.3518, compared to 1.2663 in Q4 2022, indicating a significant impact from foreign exchange fluctuations[197]. - The company is exposed to foreign exchange risk, particularly with revenues and expenses denominated in currencies such as U.S. dollars, euros, and Japanese yen[354]. - The Company recognized unrealized losses of CAD $3.7 million in the fair value of forward foreign exchange contracts designated as cash flow hedges for the year ended April 2, 2023[357]. - The Company had a total outstanding balance of USD 396.3 million under the Term Loan Facility as of April 2, 2023, with a potential pre-tax income decrease of USD 2.9 million for a 1% depreciation of the Canadian dollar[361]. Shareholder Activities - For the year ended April 2, 2023, the company repurchased 1,152,802 subordinate voting shares for a total cash consideration of $27.9 million, with $20.0 million of this amount related to shares purchased under the ASPP[332]. - The company has authorized the repurchase of up to 5,421,685 subordinate voting shares, representing approximately 10.0% of the issued and outstanding shares as of November 10, 2022[330]. Operational Initiatives - The company announced a Transformation Program aimed at increasing operational efficiencies and sustainable growth[201]. - The company established a joint venture in Japan, acquiring 50% of Canada Goose Japan, K.K. for a total consideration of CAD $22.6 million, expected to enhance market presence in Japan[198]. - The company opened 10 permanent stores during the year ended April 2, 2023, compared to 13 permanent stores during the year ended April 3, 2022[224].

Revenue Performance - Total revenue for Q4 FY23 increased by 31.4% to CAD $293.2 million compared to CAD $223.1 million in Q4 FY22[8] - Revenue growth was driven by Asia Pacific and EMEA regions, with increases of 65.4% and 27.3%, respectively[4] - Direct-to-Consumer (DTC) revenue grew by 22.6% to CAD $227.5 million, supported by retail store expansion[11] - Total revenue for fiscal 2024 is expected to be between $1.400 billion and $1.500 billion[20] Profitability Metrics - The gross profit for Q4 FY23 was CAD $190.3 million, a 23.5% increase from CAD $154.1 million in Q4 FY22, although gross margin decreased by 420 basis points to 64.9%[8][14] - Operating income surged to CAD $17.2 million, up from CAD $0.9 million in the prior year, reflecting an increase of 1,811.1%[8] - Adjusted EBIT rose by 122.6% to CAD $27.6 million, with an adjusted EBIT margin of 9.4%[8] - Adjusted net income attributable to shareholders increased by 267.5% to CAD $14.7 million, with adjusted net income per basic share rising to CAD $0.14[8] - Adjusted EBIT for the fourth quarter was CAD $27.6 million, representing an adjusted EBIT margin of 9.4%, up from 5.6% in the fourth quarter of 2022[31] Future Outlook - The company expects stronger growth in revenue and profitability metrics for fiscal 2024[4] - Non-IFRS adjusted EBIT is projected to be between $210 million and $240 million, representing a margin of 15% to 16%[20] - Non-IFRS adjusted net income per diluted share is anticipated to range from $1.20 to $1.48[20] - DTC revenue is expected to be in the mid-to-high 70s as a percentage of total revenue, driven by comparable sales growth in the mid single digits to mid teens[20] - Q1 fiscal 2024 DTC comparable sales growth is projected to be in the high teens to low 20s[20] - Wholesale revenue is expected to decline by 6%, reflecting a continued reduction in wholesale door count[20] Store Expansion Plans - The company plans to open 16 new permanent stores in fiscal 2024, primarily in Mainland China, the USA, and Japan[5] - The company plans to open 16 permanent retail stores, primarily in Mainland China, the USA, and Japan, expected to be operational in the second half of the year[20] Inventory and Costs - Inventory levels increased to CAD $472.6 million as of Q4 FY23, up from CAD $393.3 million in Q4 FY22, due to lower-than-expected sales in the Asia Pacific region[18] - The company incurred net temporary store closure costs of CAD $3.2 million for the fiscal year ended April 2, 2023, compared to CAD $0.2 million in the previous year[33] - The Japan Joint Venture costs amounted to CAD $10.2 million for the fiscal year ended April 2, 2023, compared to CAD $0.7 million in the previous year[32] - The company recorded a fair value loss of CAD $9.7 million related to the Japan Joint Venture during the fourth quarter[35] Shareholder Information - Weighted average diluted shares outstanding for fiscal 2024 is estimated at 106.3 million[20] - The weighted average number of diluted shares outstanding was 104,519,045 for the fourth quarter ended April 2, 2023[32] - The adjusted net income per diluted share attributable to shareholders for the fiscal year was CAD $1.05, down from CAD $1.07 in the previous year[32] Tax and Margins - The effective tax rate is projected to be in the low 20s as a percentage of income before taxes for fiscal 2024[20]

Canada Goose Holdings Inc. (NYSE:GOOS) Q3 2023 Earnings Conference Call February 2, 2023 9:00 AM ET Company Participants Amy Schwalm - Vice President of Investor Relations Dani Reiss - Chairman and Chief Executive Officer Jonathan Sinclair - Executive Vice President and Chief Financial Officer Carrie Baker - President Conference Call Participants Michael Binetti - Credit Suisse Brooke Roach - Goldman Sachs Adrienne Yih - Barclays Ike Boruchow - Wells Fargo Oliver Chen - Cowen Jonathan Komp - Baird Mark Petr ...