Canada Goose reported second‑quarter fiscal 2025 revenue of $272.6 million, a 1.8% increase from the prior quarter and a 1.9% rise from the same period a year earlier. The company posted a net loss attributable to shareholders of $15.2 million, compared with a $5.4 million profit in the second quarter of fiscal 2024. Gross margin expanded to 62.4% from 61.3% a year ago, driven by a higher proportion of direct‑to‑consumer (DTC) sales and pricing power in the core product lines.
The DTC segment generated $126.6 million in revenue, up 21.8% year‑over‑year, while wholesale revenue fell 1.0% to $135.9 million. DTC comparable sales grew 10.2% versus 1% in the prior quarter, reflecting strong demand for the brand’s flagship parkas and new product categories. The modest wholesale decline was offset by the robust DTC performance, supporting overall revenue growth.
Operating expenses rose to $187.7 million, up 15% from $162.5 million a year earlier, largely due to increased marketing spend, store‑execution costs, and product‑development initiatives. Net debt fell to $707.1 million from $826.4 million, and inventory decreased 3% year‑over‑year to $460.7 million. The company refinanced its term‑loan facility, adding $300 million of new debt at a SOFR plus 3.5% rate, which will support future growth initiatives.
The adjusted loss per share of $0.14 fell short of the consensus estimate of $0.08, a miss driven by higher SG&A and the company’s continued investment in the DTC channel. Revenue was slightly below the $274 million consensus, reflecting macro‑economic headwinds that tempered demand in some markets. The improved gross margin indicates that the company’s pricing strategy and favorable mix shift are mitigating some of the cost pressures.
CEO Dani Reiss said the quarter “reflects strong DTC performance and positive comparable sales growth—clear proof our strategy is working.” She added that the company is “investing with intention, elevating our product offering, brand and consumer experiences, and entering peak season with confidence.” Management expressed optimism for the second half of fiscal 2025, while acknowledging that the earnings miss highlights the short‑term impact of the current investment cycle.
Investors reacted negatively to the earnings miss and the company’s forward outlook, underscoring concerns about the short‑term profitability impact of the DTC investment strategy.
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