Canada Goose(GOOS) - 2023 Q4 - Annual Report

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$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$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$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$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$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$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$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$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$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$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$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$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].