Canada Goose(US:GOOS)2024-08-01 11:33Revenue and Profitability - Revenue for the first quarter ended June 30, 2024, was CAD 88.1 million, an increase of 3.9% compared to CAD 84.8 million for the same period in 2023[2] - Gross profit decreased to CAD 52.6 million, down 4.7% from CAD 55.2 million year-over-year[2] - Operating loss for the first quarter was CAD 96.9 million, slightly improved from CAD 99.7 million in the previous year[2] - Net loss attributable to shareholders was CAD 74.0 million, compared to CAD 85.0 million in the same quarter last year, reflecting a reduction of 12.0%[1] - Loss per share attributable to shareholders was CAD (0.80), compared to CAD (0.78) in the prior year[1] - Comprehensive loss for the first quarter was CAD 69.8 million, compared to CAD 78.1 million in the same quarter last year[4] - Total segment revenue increased to CAD 88.1 million, up from CAD 84.8 million year-over-year, with Direct-to-Consumer (DTC) revenue rising to CAD 63.1 million from CAD 55.8 million[25] - The Wholesale segment revenue decreased to CAD 16.0 million from CAD 27.1 million, while the Other segment revenue increased significantly to CAD 9.0 million from CAD 1.9 million[25] - The total segment operating loss widened to CAD 27.9 million compared to CAD 13.6 million in the prior year, with DTC segment loss increasing to CAD 23.1 million from CAD 17.3 million[25] Assets and Liabilities - Total current assets decreased to CAD 685.0 million from CAD 704.5 million year-over-year[6] - Cash and cash equivalents increased to CAD 61.9 million from CAD 48.0 million in the previous year[6] - Total liabilities rose to CAD 1,095.3 million, up from CAD 1,072.9 million year-over-year[6] - Total equity attributable to shareholders decreased to CAD 345.5 million from CAD 381.9 million in the previous year[6] - Total inventories as of June 30, 2024, were $484.3 million, down from $522.1 million as of July 2, 2023, representing a decrease of approximately 7.2%[32] - Trade receivables stood at $50.4 million as of June 30, 2024, a slight decrease from $50.9 million in the previous year[31] - Non-current, non-financial assets totaled $593.1 million as of June 30, 2024, compared to $586.4 million as of July 2, 2023, showing a modest increase[29] - As of June 30, 2024, accounts payable and accrued liabilities totaled $144.3 million, a decrease from $178.6 million in July 2023[41] Cash Flow and Operating Activities - Cash used in operating activities was CAD 142.9 million, a decrease from CAD 209.3 million in the previous year[8] - Cash at the end of the period was CAD 61.9 million, compared to CAD 48.0 million at the end of the same quarter last year[8] - The company experienced a foreign exchange gain of CAD 2.5 million, contrasting with a loss of CAD 2.5 million in the previous year[8] - Net interest, finance, and other costs for the first quarter ended June 30, 2024, were $3.2 million, a decrease from $14.5 million in the same quarter of 2023[54] - The change in non-cash operating items for the first quarter ended June 30, 2024, resulted in a total decrease of $63.1 million, compared to a decrease of $98.9 million in the same quarter of the previous year[102] Corporate Expenses and Management - Corporate expenses decreased to $69.0 million in Q1 2024 from $86.1 million in Q1 2023, indicating improved cost management[27] - Total depreciation and amortization expense for Q1 2024 was $30.0 million, up from $26.6 million in Q1 2023, reflecting increased asset utilization[28] - The Company incurred expenses with related parties of $0.5 million during the first quarter ended June 30, 2024, compared to $0.3 million in the first quarter ended July 2, 2023[69] Borrowings and Financial Obligations - The Company had $54.3 million owing on the Revolving Facility as of June 30, 2024, with an unused borrowing capacity of $335.2 million[45] - The Term Loan outstanding as of June 30, 2024, was $396.0 million, with quarterly repayments of $0.75 million and a maturity date of October 7, 2027[49] - Short-term borrowings as of June 30, 2024, totaled $36.8 million, including $16.6 million from Mainland China Facilities and $16.2 million from the Japan Facility[52] - The company’s total borrowings as of June 30, 2024, included $395.5 million in Term Loan and $344.7 million in lease liabilities[103] - The total contractual obligations as of June 30, 2024, amounted to $1,127.7 million, with significant obligations due in 2028[84] Shareholder Activities - The Company initiated a normal course issuer bid to purchase up to 4,980,505 subordinate voting shares from November 22, 2023, to November 21, 2024[55] - The Company purchased 3,586,124 subordinate voting shares for a total cash consideration of $56.9 million under the Fiscal 2024 NCIB[57] - A total of 1,156,959 subordinate voting shares were purchased for cancellation for $26.3 million during the first quarter ended July 2, 2023[59] - The Company has purchased 2,309,761 subordinate voting shares for cancellation for a total cash consideration of $54.2 million since the commencement of the Fiscal 2023 NCIB[59] - The Company purchased an additional 422,544 subordinate voting shares for cancellation for $10.0 million under the ASPP after the first quarter ended July 2, 2023[60] Financial Risks and Management - The company is exposed to various financial risks, including liquidity risk, credit risk, and market risk, which are managed by senior management and the Board of Directors[81] - The company has forward foreign exchange contracts outstanding as of June 30, 2024, including contracts to purchase $82.3 million in U.S. dollars and €99.0 million in euros[96] - Interest rates on borrowings include 3.00% for Mainland China Facilities, 0.48% for Japan Facility, 6.30% for Revolving Facility, and 8.96% for Term Loan[100] Inventory Management - The provision for obsolescence increased to $62.4 million in Q1 2024 from $42.5 million in Q1 2023, highlighting rising concerns over inventory management[33] - Trade accounts receivable insured under a third-party credit insurance policy totaled approximately $12.0 million as of June 30, 2024, down from $22.8 million a year earlier[88] - The company has a factoring program for trade accounts receivable in Europe, with a limit of EUR20.0 million, which was terminated on April 12, 2024[89]