Canada Goose(GOOS) - 2022 Q4 - Annual Report

Financial Performance - Total revenue for Q4 Fiscal 2022 was $223.1 million, an increase of 6.8% from $208.8 million in Q4 Fiscal 2021[6] - Direct-to-Consumer (DTC) revenue rose by 8.0% to $185.4 million, while e-Commerce revenue decreased by 12.3%[6] - Non-IFRS adjusted EBIT for Q4 was $12.5 million, representing a margin of 5.6%, compared to $4.8 million and 2.3% in the prior year[6] - The company reported a net loss of $9.1 million, or $(0.09) per diluted share, compared to a net income of $2.5 million, or $0.02 per diluted share in the previous year[6] - For Fiscal 2023, total revenue is expected to be between $1.300 billion and $1.400 billion, with non-IFRS adjusted EBIT projected at $250 million to $290 million[7] - Adjusted net income for the year ended April 3, 2022, was CAD $119.4 million, up from CAD $86.2 million in 2021, reflecting a growth of 38.5%[17] - Adjusted EBIT margin for the fourth quarter was 5.6%, an increase from 2.3% in the same quarter of the previous year[16] - Total adjustments for the fourth quarter amounted to CAD $16.1 million, compared to a negative adjustment of CAD $2.0 million in the same quarter of 2021[17] Cash and Inventory Management - Cash at the end of Q4 was $287.7 million, down from $477.9 million, with inventory increasing to $393.3 million from $342.3 million[6][13] Shareholder Actions - The company repurchased 5,636,763 subordinate voting shares for a total cash consideration of $253.2 million during Fiscal 2022[7] Market Strategy and Growth - The company anticipates DTC to account for 70% to 73% of total revenue, driven by comparable sales growth in the low to high teens[7] - The company is focusing on expanding into new markets and enhancing customer experience while leveraging its successful product strategy[3] - The company plans to enhance its global distribution structure through the transition of logistics agencies[19] Challenges and Risks - The company anticipates continued challenges due to the COVID-19 pandemic and evolving global economic conditions, impacting future performance[19] Accounting and Policy Changes - The company has adopted a change in accounting policy regarding the treatment of implementation costs related to Software as a Service (SaaS) arrangements[18] Taxation - The effective tax rate for Fiscal 2023 is expected to be in the low 20s as a percentage of income before taxes[11] Impairment and Losses - The company incurred impairment losses of CAD $7.7 million for the year ended April 3, 2022, with no impairment losses recorded in the previous year[17] - The company reported net excess overhead costs from temporary closure of manufacturing facilities of CAD $4.3 million for the year ended April 3, 2022[17] - Unrealized foreign exchange gain on the Term Loan Facility was CAD $1.1 million for the fourth quarter, compared to a loss of CAD $3.1 million in the same quarter of 2021[17]