Q4 FY23 Highlights1:
TORONTO--(BUSINESS WIRE)-- Canada Goose Holdings Inc. (“Canada Goose” or the “Company”) (NYSE:GOOS, TSX:GOOS) today announced financial results for the fourth quarter ended April 2, 2023 (“Q4 2023” or “Q4 ended April 2, 2023”). All amounts are in Canadian dollars unless indicated.
“I am pleased with our fourth quarter results, particularly the strong revenue results generated in Greater China and EMEA,” said Dani Reiss, Chairman and CEO. “This is a testament to the strength of the brand and this momentum has continued alongside early encouraging results in North America in fiscal 2024 year to date. Lastly, I am excited by the progress our global teams have made in advancing our strategic growth pillars– to accelerate consumer focused growth, build out DTC, and create new and expand product categories, rapidly. We remain confident in our ability to execute and leverage these pillars, and we continue to build our brand strength to generate profitable growth sustainable over the long term.”
Strategic Update:
As part of its strategic plan to fiscal 2028, the Company intends to execute on the following three strategic growth pillars first introduced at its Investor Day on February 7, 2023:
In the fourth quarter, we launched our Transformation Program to support the strategic pillars described above. This multi-phase program will work to increase operational efficiencies by optimizing production and procurement, developing people and resources, and focusing on our consumers to allow sustainable growth, profitability and long term value.
Key Fourth Quarter Fiscal 2023 Results34
CAD $ millions (except share and per share data) | Fourth quarter ended |
| $ Change |
| % Change | |||||||
April 2, 2023 |
| April 3, 2022 |
|
| ||||||||
Revenue |
| 293.2 |
|
|
| 223.1 |
|
| 70.1 |
| 31.4 | % |
Gross profit |
| 190.3 |
|
|
| 154.1 |
|
| 36.2 |
| 23.5 | % |
Gross margin |
| 64.9 | % |
|
| 69.1 | % |
|
|
| (420 | )bps |
Operating income |
| 17.2 |
|
|
| 0.9 |
|
| 16.3 |
| 1,811.1 | % |
Operating margin |
| 5.9 | % |
|
| 0.4 | % |
|
|
| 550 | bps |
Net loss attributable to shareholders of the Company |
| (3.1 | ) |
|
| (9.1 | ) |
| 6.0 |
| 65.9 | % |
Loss per share attributable to shareholders of the Company |
|
|
|
|
|
|
| |||||
Basic | $ | (0.03 | ) |
| $ | (0.09 | ) |
| 0.06 |
| 66.7 | % |
Diluted | $ | (0.03 | ) |
| $ | (0.09 | ) |
| 0.06 |
| 66.7 | % |
Weighted average number of shares outstanding |
|
|
|
|
|
|
| |||||
Basic |
| 104,519,045 |
|
|
| 106,133,970 |
|
|
|
|
| |
Diluted3 |
| 104,519,045 |
|
|
| 106,133,970 |
|
|
|
|
| |
Non-IFRS Financial Measures4: |
|
|
|
|
|
|
| |||||
Adjusted EBIT5 |
| 27.6 |
|
|
| 12.4 |
|
| 15.2 |
| 122.6 | % |
Adjusted EBIT margin |
| 9.4 | % |
|
| 5.6 | % |
|
|
| 380 | bps |
Adjusted net income attributable to shareholders of the Company5 |
| 14.7 |
|
|
| 4.0 |
|
| 10.7 |
| 267.5 | % |
Adjusted net income per basic share attributable to shareholders of the Company | $ | 0.14 |
|
| $ | 0.04 |
|
| 0.10 |
| 250.0 | % |
Adjusted net income per diluted share attributable to shareholders of the Company | $ | 0.14 |
|
| $ | 0.04 |
|
| 0.10 |
| 250.0 | % |
Revenue
Q4 2023 revenue increased 31.4% on a reported basis and 30.1% on a constant currency revenue basis6.
Revenue By Segment
| Fourth quarter ended |
| $ Change |
| % Change | |||||||||||
CAD $ millions | April 2, 2023 |
| April 3, 2022 |
| As reported |
| Foreign exchange impact |
| In constant currency6 |
| As reported |
| In constant currency6 | |||
DTC | 227.5 |
| 185.6 |
| 41.9 |
| (1.9 | ) |
| 40.0 |
| 22.6 | % |
| 21.6 | % |
Wholesale | 45.5 |
| 34.9 |
| 10.6 |
| (1.1 | ) |
| 9.5 |
| 30.4 | % |
| 27.2 | % |
Other | 20.2 |
| 2.6 |
| 17.6 |
| — |
|
| 17.6 |
| 676.9 | % |
| 676.9 | % |
Total revenue | 293.2 |
| 223.1 |
| 70.1 |
| (3.0 | ) |
| 67.1 |
| 31.4 | % |
| 30.1 | % |
DTC revenue grew 22.6% largely due to continued retail store expansion and improved growth and performance within our existing store network. We ended Q4 2023 with 51 permanent stores compared to 41 permanent stores at the end of the comparative quarter. DTC comparable sales7 grew 6.9% driven by growth within the existing store network more than offsetting lower e-Commerce business as consumers return to experiential shopping.
Wholesale revenue increased 30.4% due to an increase in order value globally and an increased volume of shipments from prior quarters being realized in Q4 2023 relative to the comparative quarter.
Other revenue increased to $20.2m primarily due to higher product availability to employees, friends and family.
Revenue by Geography
| Fourth quarter ended |
| $ Change |
| % Change | |||||||||||||
CAD $ millions | April 2, 2023 |
| April 3, 2022 |
| As reported |
| Foreign exchange impact |
| In constant currency6 |
| As reported |
| In constant currency6 | |||||
Canada | 55.2 |
| 39.1 |
| 16.1 |
|
| — |
|
| 16.1 |
|
| 41.2 | % |
| 41.2 | % |
United States | 67.5 |
| 70.7 |
| (3.2 | ) |
| (2.4 | ) |
| (5.6 | ) |
| (4.5 | )% |
| (7.9 | )% |
Asia Pacific | 114.1 |
| 69.0 |
| 45.1 |
|
| 0.8 |
|
| 45.9 |
|
| 65.4 | % |
| 66.5 | % |
EMEA | 56.4 |
| 44.3 |
| 12.1 |
|
| (1.4 | ) |
| 10.7 |
|
| 27.3 | % |
| 24.2 | % |
Total revenue | 293.2 |
| 223.1 |
| 70.1 |
|
| (3.0 | ) |
| 67.1 |
|
| 31.4 | % |
| 30.1 | % |
Revenue increased in Canada, EMEA and Asia Pacific compared to the comparative quarter resulting from an increase in DTC revenue. Re-opening in Asia Pacific after lifting of COVID-19 restrictions and strong growth in both channels in EMEA positively impacted results. The revenue decline in the United States, amid a challenging macro-economic backdrop, was partially offset by retail expansion and consumers returning to experiential shopping.
Gross profit and gross margin
Gross profit increased $36.2m primarily due to higher revenue, partially offset by lower gross margins. Gross margins were unfavorably impacted by an increase in obsolete raw material provisioning, higher product costs and the unfavourable impact of the fair value adjustment for inventory acquired through the Japan Joint Venture, partially offset by pricing.
Operating income and adjusted EBIT8
Operating income increased largely due to higher gross profit. The increase was partially offset by higher operating costs related to incremental personnel costs driven by headcount, higher costs related to an expanded store networks, higher fees in support of strategic activities including the Transformation Program and costs associated with the Japan Joint Venture. The increase in operating expenses was partially offset by lower impairment charges in Q4 2023 compared to the prior year quarter. Adjusted EBIT increased primarily due to higher gross profit partially offset by incremental personnel costs driven by headcount, the increased store network and the operating costs of the Japan Joint Venture.
Net income and adjusted net income8
Net loss was higher than the comparative quarter primarily due to higher net interest, finance and other costs, as well as higher income tax expense, partially offset by higher operating income. Adjusted net income was higher than the prior year quarter due to higher operating income partially offset by higher income tax expense.
Balance Sheet Highlights
Cash was $286.5m as at Q4 ended April 2, 2023, compared to $287.7m as at Q4 ended April 3, 2022. During the fourth quarter of fiscal 2023, the Company repurchased 407,421 subordinate voting shares for a total cash consideration of $10.0m.
Inventory was $472.6m as at Q4 ended April 2, 2023, compared to $393.3m as at Q4 ended April 3, 2022. Higher inventory levels are attributable to lower-than-expected sales in the Asia Pacific region due to COVID-19 disruptions for most of fiscal 2023 and production planning. Inventory of $27.3m was acquired through the Japan Joint Venture, and the inventory level was $19.2m as at April 2, 2023. We monitor the levels of inventory in each of our sales channels and across geographic regions and aim to align with demand that we forecast in each region.
Full year and First Quarter Fiscal 2024 Outlook9
For fiscal 2024, the Company expects:
For the first quarter of fiscal 2024, the Company currently expects:
This outlook is based on a number of assumptions for fiscal 2024, including the following:
Within the meaning of applicable securities laws, this outlook constitutes forward-looking information. The purpose of this outlook is to provide a description of management's expectations regarding the Company's annual financial performance and may not be appropriate for other purposes. Actual results could vary materially as a result of numerous factors, including the extent and duration of operational disruptions that may affect our business as a result of the COVID-19 pandemic and other risk factors, many of which are beyond the Company’s control. See “Cautionary Note Regarding Forward-Looking Statements”.
Conference Call Information
The Company will host the conference call at 9:00 a.m. Eastern Standard Time on May 18, 2023. The conference call can be accessed by using the following link: https://register.vevent.com/register/BI2844b16a4ed04161a843d5d168af045f. After registering, an email will be sent including dial-in details and a unique conference call pin required to join the live call. A live webcast of the conference call will also be available on the investor relations page of the Company's website at http://investor.canadagoose.com.
About Canada Goose
Founded in 1957 in a small warehouse in Toronto, Canada, Canada Goose (NYSE:GOOS, TSX:GOOS) is a lifestyle brand and a leading manufacturer of performance luxury apparel. Every collection is informed by the rugged demands of the Arctic, ensuring a legacy of functionality is embedded in every product from parkas and rainwear to apparel and accessories. Canada Goose is inspired by relentless innovation and uncompromised craftsmanship, recognized as a leader for its Made in Canada commitment. In 2020, Canada Goose announced HUMANATURE, its purpose platform that unites its sustainability and values-based initiatives, reinforcing its commitment to keep the planet cold and the people on it warm. Canada Goose also owns Baffin, a Canadian designer and manufacturer of performance outdoor and industrial footwear. Visit www.canadagoose.com for more information.
Condensed Consolidated Interim Statements of (Loss) Income (unaudited) (in millions of Canadian dollars, except share and per share amounts)
|
| Fourth quarter ended | For the year ended |
| ||||||||||
|
| April 2, 2023 | April 3, 2022 | April 2, 2023 | April 3, 2022 |
| ||||||||
|
|
|
|
|
|
| ||||||||
|
| $ | $ | $ | $ |
| ||||||||
Revenue |
|
| 293.2 |
|
| 223.1 |
|
| 1,217.0 |
|
| 1,098.4 |
|
|
Cost of sales |
|
| 102.9 |
|
| 69.0 |
|
| 401.8 |
|
| 364.8 |
|
|
Gross profit |
|
| 190.3 |
|
| 154.1 |
|
| 815.2 |
|
| 733.6 |
|
|
Gross margin |
|
| 64.9 | % |
| 69.1 | % |
| 67.0 | % |
| 66.8 | % |
|
SG&A expenses |
|
| 173.1 |
|
| 153.2 |
|
| 679.7 |
|
| 576.9 |
|
|
SG&A expenses as % of revenue |
|
| 59.0 | % |
| 68.7 | % |
| 55.9 | % |
| 52.5 | % |
|
Operating income |
|
| 17.2 |
|
| 0.9 |
|
| 135.5 |
|
| 156.7 |
|
|
Operating margin |
|
| 5.9 | % |
| 0.4 | % |
| 11.1 | % |
| 14.3 | % |
|
Net interest, finance and other costs |
|
| 21.8 |
|
| 7.0 |
|
| 42.0 |
|
| 39.0 |
|
|
(Loss) income before income taxes |
|
| (4.6 | ) |
| (6.1 | ) |
| 93.5 |
|
| 117.7 |
|
|
Income tax expense |
|
| 5.4 |
|
| 3.0 |
|
| 24.6 |
|
| 23.1 |
|
|
Effective tax rate |
|
| (117.4 | )% |
| (49.2 | )% |
| 26.3 | % |
| 19.6 | % |
|
Net (loss) income |
|
| (10.0 | ) |
| (9.1 | ) |
| 68.9 |
|
| 94.6 |
|
|
Net loss attributable to non-controlling interest |
|
| (6.9 | ) |
| — |
|
| (3.8 | ) |
| — |
|
|
Net (loss) income attributable to shareholders of the Company |
|
| (3.1 | ) |
| (9.1 | ) |
| 72.7 |
|
| 94.6 |
|
|
Weighted average number of shares outstanding |
|
|
|
|
|
| ||||||||
Basic |
|
| 104,519,045 |
|
| 106,133,970 |
|
| 105,058,643 |
|
| 108,296,802 |
|
|
Diluted |
|
| 104,519,045 |
|
| 106,133,970 |
|
| 105,622,312 |
|
| 109,154,721 |
|
|
(Loss) earnings per share attributable to shareholders of the Company |
|
|
|
|
|
| ||||||||
Basic |
| $ | (0.03 | ) | $ | (0.09 | ) | $ | 0.69 |
| $ | 0.87 |
|
|
Diluted |
| $ | (0.03 | ) | $ | (0.09 | ) | $ | 0.69 |
| $ | 0.87 |
|
|
Non-IFRS Financial Measures10: |
|
|
|
|
|
| ||||||||
Adjusted EBIT |
|
| 27.6 |
|
| 12.4 |
|
| 175.1 |
|
| 171.3 |
|
|
Adjusted EBIT margin |
|
| 9.4 | % |
| 5.6 | % |
| 14.4 | % |
| 15.6 | % |
|
Adjusted net income attributable to shareholders of the Company |
|
| 14.7 |
|
| 4.0 |
|
| 110.7 |
|
| 116.7 |
|
|
Adjusted net income per basic share attributable to shareholders of the Company |
| $ | 0.14 |
| $ | 0.04 |
| $ | 1.05 |
| $ | 1.08 |
|
|
Adjusted net income per diluted share attributable to shareholders of the Company |
| $ | 0.14 |
| $ | 0.04 |
| $ | 1.05 |
| $ | 1.07 |
|
|
Condensed Consolidated Interim Statements of Comprehensive (Loss) Income (unaudited) (in millions of Canadian dollars, except per share amounts)
|
| Fourth quarter ended |
| For the year ended |
| ||||||
|
| April 2, 2023 | April 3, 2022 |
| April 2, 2023 | April 3, 2022 |
| ||||
|
|
|
|
|
|
|
| ||||
|
| $ | $ |
| $ | $ |
| ||||
|
|
|
|
|
|
|
| ||||
Net (loss) income |
| (10.0 | ) | (9.1 | ) |
| 68.9 |
| 94.6 |
|
|
|
|
|
|
|
|
|
| ||||
Items that will not be reclassified to earnings, net of tax: |
|
|
|
|
|
|
| ||||
Items that will not be reclassified to earnings, net of tax: |
|
|
|
|
|
|
| ||||
Actuarial (loss) gain on post-employment obligation |
| (0.4 | ) | (0.1 | ) |
| 0.6 |
| 0.1 |
|
|
Items that may be reclassified to earnings, net of tax: |
|
|
|
|
|
|
| ||||
Cumulative translation adjustment gain (loss) |
| 5.4 |
| (15.4 | ) |
| 16.1 |
| (25.5 | ) |
|
Net (loss) gain on derivatives designated as cash flow hedges |
| (4.1 | ) | 11.3 |
|
| 0.4 |
| 8.7 |
|
|
Reclassification of net loss on cash flow hedges to income |
| 1.1 |
| 1.9 |
|
| 6.0 |
| 4.7 |
|
|
Other comprehensive income (loss) |
| 2.0 |
| (2.3 | ) |
| 23.1 |
| (12.0 | ) |
|
Comprehensive (loss) income |
| (8.0 | ) | (11.4 | ) |
| 92.0 |
| 82.6 |
|
|
|
|
|
|
|
|
|
| ||||
Attributable to: |
|
|
|
|
|
|
| ||||
Shareholders of the Company |
| (1.2 | ) | (11.4 | ) |
| 95.7 |
| 82.6 |
|
|
Non-controlling interest |
| (6.8 | ) | — |
|
| (3.7 | ) | — |
|
|
Comprehensive (loss) income |
| (8.0 | ) | (11.4 | ) |
| 92.0 |
| 82.6 |
|
|
Condensed Consolidated Statements of Financial Position (unaudited) (in millions of Canadian dollars)
| April 2, 2023 | April 3, 2022 | |
|
|
| |
Assets | $ | $ | |
Current assets |
|
| |
Cash | 286.5 | 287.7 | |
Trade receivables | 50.9 | 42.7 | |
Inventories | 472.6 | 393.3 | |
Income taxes receivable | 0.9 | 1.1 | |
Other current assets | 52.3 | 37.5 | |
Total current assets | 863.2 | 762.3 | |
|
|
| |
Deferred income taxes | 67.5 | 53.2 | |
Property, plant and equipment | 156.0 | 114.2 | |
Intangible assets | 135.1 | 122.2 | |
Right-of-use assets | 291.8 | 215.2 | |
Goodwill | 63.9 | 53.1 | |
Other long-term assets | 12.5 | 20.4 | |
Total assets | 1,590.0 | 1,340.6 | |
|
|
| |
Liabilities |
|
| |
Current liabilities |
|
| |
Accounts payable and accrued liabilities | 195.6 | 176.2 | |
Provisions | 21.6 | 18.5 | |
Income taxes payable | 31.5 | 24.5 | |
Short-term borrowings | 27.6 | 3.8 | |
Current portion of lease liabilities | 76.1 | 58.5 | |
Total current liabilities | 352.4 | 281.5 | |
|
|
| |
Provisions | 36.5 | 31.3 | |
Deferred income taxes | 16.4 | 15.8 | |
Term loan | 391.6 | 366.2 | |
Lease liabilities | 258.7 | 192.2 | |
Other long-term liabilities | 56.9 | 25.7 | |
Total liabilities | 1,112.5 | 912.7 | |
|
|
| |
Equity |
|
| |
Equity attributable to shareholders of the Company | 469.5 | 427.9 | |
Non-controlling interests | 8.0 | — | |
Total equity | 477.5 | 427.9 | |
Total liabilities and equity | 1,590.0 | 1,340.6 |
Non-IFRS Financial Measures and Other Specified Financial Measures
This press release includes references to certain non-IFRS financial measures such as adjusted EBIT, adjusted net income and constant currency revenue and certain non-IFRS ratios such as, adjusted EBIT margin, adjusted net income attributable to shareholders of the Company and adjusted net income per basic and diluted share attributable to the shareholders of the Company. These financial measures are employed by the Company to measure its operating and economic performance and to assist in business decision-making, as well as providing key performance information to senior management. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors and analysts use this information to evaluate the Company’s operating and financial performance. These financial measures are not defined under IFRS nor do they replace or supersede any standardized measure under IFRS. Other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures. Additional information, including definitions and reconciliations of non-IFRS measures to the nearest IFRS measure can be found in our Management’s Discussion and Analysis of Financial Conditions and Results of Operations (“MD&A”) under “Non-IFRS Financial Measures and Other Specified Financial Measures. Such reconciliations can also be found in this press release under “Reconciliation of Non-IFRS Measures” and, in the case of constant currency revenue, under “Revenue”.
This press release also includes DTC comparable sales growth which is a supplementary financial measure defined as sales on a constant currency basis from e-Commerce sites and stores which have been operating for one full year (12 successive fiscal months). The measure excludes store sales from both periods for the specific trading days when the stores were closed, whether those closures occurred in the current period or the comparative period.
Reconciliation of Non-IFRS Measures
The tables below reconcile net income to adjusted EBIT and adjusted net income attributable to shareholders of the Company for the periods indicated. Adjusted EBIT margin is equal to adjusted EBIT for the period presented as a percentage of revenue for the same period.
Beginning with the third quarter of fiscal 2023, we no longer include pre-store opening costs in the reconciliation of net income to adjusted EBIT and adjusted net income attributable to shareholders of the Company, as we believe these costs are a part of our operating base as we accelerate new store openings. Comparable periods have been restated to reflect this change.
| Fourth quarter ended |
| For the year ended | ||||||||
CAD $ millions | April 2, 2023 |
| April 3, 2022 |
| April 2, 2023 |
| April 3, 2022 | ||||
Net (loss) income | (10.0 | ) |
| (9.1 | ) |
| 68.9 |
|
| 94.6 |
|
Add (deduct) the impact of: |
|
|
|
|
|
|
| ||||
Income tax expense | 5.4 |
|
| 3.0 |
|
| 24.6 |
|
| 23.1 |
|
Net interest, finance and other costs | 21.8 |
|
| 7.0 |
|
| 42.0 |
|
| 39.0 |
|
Operating income | 17.2 |
|
| 0.9 |
|
| 135.5 |
|
| 156.7 |
|
Unrealized foreign exchange loss on Term Loan Facility (a) | 0.4 |
|
| 1.1 |
|
| 12.1 |
|
| 2.7 |
|
Net temporary store closure costs (b) | — |
|
| — |
|
| 3.2 |
|
| 0.2 |
|
Head office transition costs (d) | 2.0 |
|
| — |
|
| 6.7 |
|
| — |
|
Japan Joint Venture costs (f) | 1.9 |
|
| 0.7 |
|
| 10.2 |
|
| 0.7 |
|
Impairment losses (g) | 1.0 |
|
| 7.7 |
|
| 1.0 |
|
| 7.7 |
|
Strategic initiatives (h) | 4.1 |
|
| — |
|
| 4.1 |
|
| — |
|
Legal proceeding costs (i) | — |
|
| 1.9 |
|
| 2.2 |
|
| 2.9 |
|
Other (m) | 1.0 |
|
| 0.1 |
|
| 0.1 |
|
| 0.4 |
|
Total adjustments | 10.4 |
|
| 11.5 |
|
| 39.6 |
|
| 14.6 |
|
Adjusted EBIT | 27.6 |
|
| 12.4 |
|
| 175.1 |
|
| 171.3 |
|
Adjusted EBIT margin | 9.4 | % |
| 5.6 | % |
| 14.4 | % |
| 15.6 | % |
| Fourth quarter ended |
| For the year ended | ||||||||||||
CAD $ millions | April 2, 2023 |
| April 3, 2022 |
| April 2, 2023 |
| April 3, 2022 | ||||||||
Net (loss) income |
| (10.0 | ) |
|
| (9.1 | ) |
|
| 68.9 |
|
|
| 94.6 |
|
Add (deduct) the impact of: |
|
|
|
|
|
|
| ||||||||
Unrealized foreign exchange loss on Term Loan Facility (a) |
| 0.4 |
|
|
| 1.1 |
|
|
| 12.1 |
|
|
| 2.7 |
|
Net temporary store closure costs (b) (c) |
| — |
|
|
| — |
|
|
| 3.3 |
|
|
| 0.2 |
|
Head office transition costs (d) (e) |
| 2.4 |
|
|
| — |
|
|
| 8.3 |
|
|
| — |
|
Japan Joint Venture costs (f) |
| 1.9 |
|
|
| 0.7 |
|
|
| 10.2 |
|
|
| 0.7 |
|
Japan Joint Venture remeasurement loss on contingent consideration and put option (l) |
| 12.7 |
|
|
| — |
|
|
| 8.0 |
|
|
| — |
|
Impairment losses (g) |
| 1.0 |
|
|
| 7.7 |
|
|
| 1.0 |
|
|
| 7.7 |
|
Strategic initiatives (h) |
| 4.1 |
|
|
| — |
|
|
| 4.1 |
|
|
| — |
|
Legal proceeding costs (i) |
| — |
|
|
| 1.9 |
|
|
| 2.2 |
|
|
| 2.9 |
|
Deferred tax adjustment (j) |
| 3.7 |
|
|
| 4.5 |
|
|
| 3.7 |
|
|
| 4.5 |
|
Acceleration of unamortized costs on Term Loan Facility Repricing (k) |
| — |
|
|
| — |
|
|
| — |
|
|
| 9.5 |
|
Other (m) |
| 1.0 |
|
|
| 0.1 |
|
|
| 0.1 |
|
|
| 0.4 |
|
Total adjustments |
| 27.2 |
|
|
| 16.0 |
|
|
| 53.0 |
|
|
| 28.6 |
|
Tax effect of adjustments |
| (2.2 | ) |
|
| (2.9 | ) |
|
| (6.5 | ) |
|
| (6.5 | ) |
Adjusted net income |
| 15.0 |
|
|
| 4.0 |
|
|
| 115.4 |
|
|
| 116.7 |
|
Adjusted net income attributable to non-controlling interest (n) |
| (0.3 | ) |
|
| — |
|
|
| (4.7 | ) |
|
| — |
|
Adjusted net income attributable to shareholders of the Company |
| 14.7 |
|
|
| 4.0 |
|
|
| 110.7 |
|
|
| 116.7 |
|
Weighted average number of diluted shares outstanding |
| 104,519,045 |
|
|
| 106,133,970 |
|
|
| 105,622,312 |
|
|
| 109,154,721 |
|
Adjusted net income per diluted share attributable to shareholders of the Company | $ | 0.14 |
|
| $ | 0.04 |
|
| $ | 1.05 |
|
| $ | 1.07 |
|
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements, including statements relating to our fiscal 2024 full year and first quarter financial outlook, the execution of our proposed strategy including retail footprint expansion, early leading indicators and impacts for ongoing fiscal periods, our operating performance and prospects, and the general impact of the COVID-19 pandemic on the business. These forward-looking statements generally can be identified by the use of words such as “believe,” “could,” “continue,” “expect,” “estimate,” “may,” “potential,” “would,” “will,” and other words of similar meaning. Each forward-looking statement contained in this press release, including, without limitation, our fiscal 2024 full year and first quarter financial outlook and the related assumptions included herein is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Our business is subject to substantial risks and uncertainties. Applicable risks and uncertainties include, among others, the impact of the ongoing COVID-19 pandemic and the extent and duration of related disruptions to our operations, as well as the evolution of the global economic conditions, and are discussed under “Cautionary Note regarding Forward-Looking Statements” and “Factors Affecting our Performance” in our MD&A as well as under “Risk Factors” in our Annual Report on Form 20-F for the year ended April 2, 2023. You are also encouraged to read our filings with the SEC, available at www.sec.gov, and our filings with Canadian securities regulatory authorities available at www.sedar.com for a discussion of these and other risks and uncertainties. Investors, potential investors, and others should give careful consideration to these risks and uncertainties. We caution investors not to rely on the forward-looking statements contained in this press release when making an investment decision in our securities. The forward-looking statements in this press release speak only as of the date of this release, and we undertake no obligation to update or revise any of these statements.
______________________________ 1 Comparisons to prior year quarter ended April 3, 2022 (“Q4 2022” or “Q4 ended April 3, 2022”). 2 EMEA comprises Europe, the Middle East, Africa, and Latin America 3 Subordinate voting shares issuable on exercise of stock options are not treated as dilutive if including them would decrease the loss per share. Accordingly, 643,505 potentially dilutive shares have been excluded from the calculation of diluted loss per share for the fourth quarter ended April 2, 2023, compared to 564,433 for the fourth quarter ended April 3, 2022. 4 See “Non-IFRS Financial Measures and Other Specified Financial Measures”. 5 Information for the comparative fiscal quarter has been recast to reflect a revision in the Company’s calculation of adjusted EBIT and adjusted net income. See “Reconciliation of Non-IFRS Measures”. 6 Constant currency revenue is a non-IFRS financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures”. 7 DTC comparable sales is a supplementary financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures”. 8 See “Non-IFRS Financial Measures and Other Specified Financial Measures”. 9 The Company is not able to provide, without unreasonable effort, a reconciliation of the guidance for non-IFRS adjusted EBIT and non-IFRS adjusted net income per diluted share to the most directly comparable IFRS measure because the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments included in the most directly comparable IFRS measure that would be necessary for such reconciliations, including (a) income tax related accruals in respect of certain one-time items (b) the impact of foreign currency exchange and (c) non-recurring expenses that cannot reasonably be estimated in advance. These adjustments are inherently variable and uncertain and depend on various factors that are beyond the Company's control and as a result it is also unable to predict their probable significance. Therefore, because management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results in accordance with IFRS, it is unable to provide a reconciliation of the non-IFRS measures included in its fiscal 2024 guidance. 10 See “Non-IFRS Financial Measures and Other Specified Financial Measures”.
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Source: Canada Goose Holdings Inc.