DTC sales boost Canadian apparel firm Canada Goose's Q1

Canada Goose, a manufacturer of performance luxury apparel, posted Q1 FY21 sales of C$56.3 million, which doubled against the same period of last year. Direct to consumer (DTC) revenue rose to C$29.4 million (from $10.4 million), driven by fewer Covid-19 disruptions, e-commerce growth and new retail expansion, despite continued store traffic headwinds.

 
“Canada Goose is off to a great start in the first quarter,” Dani Reiss, president and CEO, said. “Our digital business continued at a rapid pace of growth globally, alongside improving retail trends.”
 
During Q1, the company’s global e-commerce revenue surged 80.8 per cent. Despite store closures in the reported period, revenue from all the geographic regions expanded significantly, with Canada gaining 126.1 per cent. DTC revenue from China skyrocketed 188.7 per cent.

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Gross profit for the three-month period totalled C$30.7 million (up from C$4.8 million), whereas operating loss was C$60.7 million (C$59.3 million). The company's net loss widened to $56.7 million ($50.1 million).
 
According to the premium outerwear maker, its wholesale revenue increased to C$25.8 million (C$8.7 million) as it benefited from higher volumes of shipments to wholesale and international distributor partners. But other revenue dropped to C$1.1 million (C$7 million), attributed to PPE sales in Q1 of FY21.
 
“With strong momentum in a less disrupted operating environment, and an exciting product pipeline - including our growing apparel business and footwear launch later this fall - we are well positioned for fiscal 2022,” Reiss added.