- Prachi Singh |
Canada Goose Holdings Inc. in its financial results for its fiscal year ended March 31, 2018 said total revenue increased by 46.4 percent or 47.7 percent on a constant currency basis to 591.2 million Canadian dollars (448.5 million dollars).
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“Our execution in fiscal 2018 was exceptional across all growth strategies and key metrics. These results reinforce my belief that we are still just scratching the surface of our global potential. Fiscal 2019 will be another exciting year, as we make significant strategic investments in infrastructure and people to support our foundation for enduring growth," stated Dani Reiss, the company’s President & Chief Executive Officer in a statement.
Review of Canada Goose’s FY18 results
Wholesale revenue for the year increased by 16.5 percent to 336.2 million Canadian dollars (255.1 million dollars), driven by order book growth from existing accounts and higher re-order volumes late in the year. Direct-to-consumer (DTC) revenue increased by 121.3 percent to 255 million Canadian dollars (193.4 million dollars), representing 43.1 percent of total revenue compared to 28.5 percent. The increase, the company said, was driven by the strong performance of existing retail stores and e-commerce sites including a full year of operations for Toronto and New York City retail stores, and incremental revenue from four new retail stores and eight national e-commerce sites opened during the fiscal year.
Gross profit increased to 347.6 million Canadian dollars (263.7 million dollars) from 212.1 million Canadian dollars (160.9 million dollars) and as a percentage of total revenue, gross profit was 58.8 percent compared to 52.5 percent. The increase was primarily attributable to a greater proportion of DTC revenue, partially offset by higher inventory provisions. Wholesale gross profit was 157.8 million Canadian dollars (119.7 million dollars), a gross margin of 46.9 percent compared 43.3 percent last year. DTC gross profit was 189.8 million Canadian dollars (144 million dollars), a gross margin of 74.4percent compared to 75.5 percent last year.
Operating income was 138.1 million Canadian dollars (104.7 million dollars), an operating margin of 23.4 percent compared to 10 percent in the previous year. Net income was 96.1 million Canadian dollars (72.9 million dollars) or 0.86 Canadian dollar (0.65 dollar) per diluted share, compared to 21.6 million Canadian dollars (16.3 million dollars) or 0.21 Canadian dollar (0.16 dollar) per diluted share last year.
Adjusted EBITDA increased by 84.1 percent to 149.2 million Canadian dollars (113.2 million dollars) and adjusted EBITDA margin expanded by 517 basis points to 25.2 percent from 20.1 percent. Adjusted net income per diluted share increased by 95.3 percent to 0.84 Canadian dollar (0.64 dollar) on 111.5 million shares from 0.43 Canadian dollar (0.33 dollar) on 102 million shares.
Canada Goose reveals long-term outlook
For fiscal 2019, the company currently expects annual revenue growth of at least 20 percent, adjusted EBITDA margin expansion of at least 50 basis points, annual growth in adjusted net income per diluted share of at least 25 percent. The company said key assumptions underlying the fiscal 2019 outlook above include wholesale revenue growth in the mid-single-digits on a percentage basis, five new retail stores in operation by the onset of the peak winter selling season, six retail stores in operation in off-peak periods in the first half of the year, compared to two in fiscal 2018.
Over the next three fiscal years, the company currently expects average annual revenue growth of at least 20 percent, annual adjusted EBITDA margin of at least 26 percent in fiscal 2021, and average annual growth in adjusted net income per diluted share of at least 25 percent.