Canada Goose(GOOS)2025-02-06 19:08Financial Data and Key Metrics Changes - Revenue for Q3 was 610 million, reflecting growth from the DTC channel offset by a decline in the Wholesale channel [48] - DTC revenue increased to 514 million last year, while comparable DTC sales declined 6% [49][50] - Gross margin expanded by 70 basis points to 74.4%, driven by favorable pricing and reduced inventory provisions [55] - Adjusted EBIT for Q3 was 207.2 million and a margin of 34% last year [56] - Adjusted net income attributable to shareholders was 1.51 per diluted share, up from 1.37 per diluted share in Q3 fiscal 2024 [59] Business Line Data and Key Metrics Changes - The direct-to-consumer (DTC) business showed positive momentum, with North America comp sales growing 22% in December [7][8] - The Snow Goose capsule collection launch was a significant highlight, with 25% of purchasers also buying mainline products [11] - Apparel offerings saw robust growth, indicating the brand's relevance beyond extreme cold weather moments [22] Market Data and Key Metrics Changes - North America revenue declined 2%, driven by a planned reduction in wholesale order volume, but DTC performance showed strength [53] - In APAC, revenue fell 2% primarily due to macroeconomic factors impacting DTC in Greater China, although wholesale revenue grew due to timing shifts [54] - EMEA revenue was down 4%, with the UK being weaker compared to the rest of EMEA [54] Company Strategy and Development Direction - The company is focused on setting the foundation for brand and product evolution, with a significant emphasis on the Snow Goose launch [9][20] - There is a strategic intent to simplify operations while maintaining investments in key growth areas [15][46] - The company aims to enhance its digital capabilities and improve the customer experience through various initiatives [31][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong execution of their strategy and the increasing global resonance of the brand [16][66] - The company is maintaining its full-year revenue guidance, expecting a range between a low-single-digit increase to a low-single-digit decline compared to fiscal 2024 [61] - Management acknowledged the challenges in the macro environment but highlighted positive trends in consumer response and brand engagement [96][98] Other Important Information - Inventory decreased 15% year-over-year, marking the fifth consecutive quarter of reduction [44] - The company is committed to enhancing efficiency and overhead costs, regardless of top-line performance [59][62] Q&A Session Summary Question: About the revenue guide and DTC comp sales forecast - Management indicated that conservatism was applied to the DTC comp sales forecast due to performance in January and the limited time left in the year [70][71] Question: About the 22% comp in North America in December - The strong performance was attributed to effective marketing initiatives and improved execution by the teams [73][74] Question: About the outlook for wholesale and conversations with partners - Positive conversations with wholesale partners were reported, with a focus on brand-aligned partnerships and improved sell-through rates [100][102] Question: On brand resonance with the Chinese consumer - The response to the Snow Goose collection was strong, with significant brand awareness and marketing investments amplifying consumer interest [94][96] Question: On traffic trends and pricing outlook - E-commerce traffic saw substantial growth, while store traffic was mixed across regions, with the UK facing more challenges [116][119]