Canadian Geese Announced The Latest Quarterly Report: Bright Sales In The Chinese Market

In November 13th, Canada's high-end outdoor brand Canada Goose (Canada goose) released the key financial data in the second quarter of fiscal year 2020. Although the second quarter sales increased by 27.7% to 294 million Canadian dollars in advance, thanks to the wholesale channel delivery time, which exceeded analysts' expectations, it also meant that the wholesale business in the third quarter would decrease correspondingly and sales would decline.
The group's share price fell 10.84% to $34.81 a share after the news was released.
Dani Reiss, CEO of Canada Goose, is very satisfied with the group's performance this quarter. He said that the excellent performance of the 2020 first half financial year has proved the brand value of Canada Goose, and affirmed the unique operation mode of the group. Early deliveries in the first quarter will inevitably lead to a third quarter sales decline, but that does not mean that market demand has decreased. At present, the brand has entered the annual sales peak. He reconfirmed the financial forecast for the 2020 fiscal year.
In addition to Canada's local brand, its performance in the international market is also excellent. In the last quarter, US sales increased by 38.5% over the same period last year, while sales in Canada increased by 29.9% over the same period last year. Sales in Asia almost doubled, to 48 million 900 thousand Canadian dollars. Although sales in Hongkong of China have declined, the overall performance of the Chinese market is still excellent, with sales almost doubled.
Recently, the brand is located in one of the four shopping centers in Paris, Rue Saint-Honor shop shopping mall is about to open.
As of September 29, 2019, the key financial data for the second quarter of Canada Goose 2020 fiscal year are as follows:
Sales increased by 27.7% to $294 million, up 28.3% from the same month, higher than analysts' expectations of $264 million.
Gross profit is 160 million Canadian dollars, gross profit margin is 54.6%, gross profit last year is 129 million yuan, gross profit margin is 55.8%.
Operating profit was $75 million 400 thousand, compared with $65 million in the same period last year.
Net profit was 60 million 600 thousand Canadian dollars, diluted earnings per share were 0.55 Canadian dollars, higher than analysts' expectations of 0.43 Canadian dollars; net profit last year was 49 million 900 thousand Canadian dollars, diluted earnings per share were 0.45 Canadian dollars.
Adjusted EBIT (pre tax profit) was 79 million 200 thousand Canadian dollars, up from 66 million 500 thousand yuan in the same period last year.
Adjusted net profit was $63 million 600 thousand, diluted earnings per share were $0.57, adjusted net profit for the same period last year was $51 million 100 thousand, and diluted earnings per share were $0.46.
By channel:
Direct selling channel:
Sales amounted to $74 million 200 thousand, compared with $50 million 400 thousand in the same period last year.
Gross profit was 56 million 100 thousand Canadian dollars, gross profit margin increased by 40 base points to 75.6%.
Operating profit was 30 million Canadian dollars, with a profit margin of 40.4%.
Wholesale channel
Sales amounted to $220 million, compared with $180 million in the same period last year.
Gross profit is 104 million Canadian dollars, gross profit margin is 47.5%.
Operating profit was 90 million 900 thousand Canadian dollars, with a profit margin of 41.4%.
Canada Goose 2020 financial year full year forecast:
Annual sales increased by at least 20% compared to the same period last year.
Adjusted EBIT rate increased by at least 0.4 percentage points.
Adjusted diluted net earnings per share increased by at least 25% over the same period last year.