Canada Goose(GOOS) - 2023 Q4 - Annual Report

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]