Sunday, 29 Nov 2020

Canada Goose Returns to Profitability

Canada Goose Holdings is back in the black and looking to build — through the colder months and the coronavirus. 

The Toronto-based parka maker turned second-quarter profit of 12.5 million Canadian dollars — down from earnings of 58 million Canadian dollars a year earlier, but also a big bounceback from losses of 50.1 million Canadian dollars in the first quarter, when stores were locked down to social distance. 

Revenues for the quarter ended Sept. 27 fell 33.7 percent to 194.8 million Canadian dollars.

But Dani Reiss, president and chief executive officer, told WWD he was “very happy with the quarter” and said the cold-weather company’s business was “accelerating right now when it matters most” and that global e-commerce revenues were up 10 percent.

Reiss also noted that the brand’s Mainland China business has returned to pre-COVID levels with direct to consumer revenues in the country up over 30 percent. Canada Goose’s retail footprint in China more than doubled during the quarter to nine stores. 

The ceo — who has built on the business founded by his grandfather, Sam Tick, in 1957 — said the brand is especially well positioned for such an uncertain world. 

“We are a brand that is known for protection,” Reiss said. “We are the reference parka. I don’t think we’ve ever been more relevant. People are looking to spend more time outside and not just for the usual reasons, but also out of necessity. They have to get outdoors through this winter to go and see their friends and family.”

It’s not business as usual, but there are signs the regular cadence is coming back at Canada Goose. 

Reiss said the company was driven by a “significant acceleration in September” that has continued into October. 

“We came into this year with a lot of uncertainties and a lot of unknowns,” he said. “This [acceleration] is in line with what usually happens.” 

That little bit of normality was more than welcome.

“There’s almost more knowns than unknowns now,” he said. 

And that’s saying a lot.

More from WWD:

Retail Misses Post-Election Rally on Wall Street

The Election Question: First Presidential Priority

Post-Election Day, Some Stores Open Amid Plywood, Many Stay Shut

Source: Read Full Article