LONDON, UK / ACCESSWIRE / March 16, 2018 / Active-Investors.com has just released a free earnings report on Canada Goose Holdings Inc. (NYSE: GOOS). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=GOOS. Canada Goose reported its third quarter fiscal 2018 operating and financial results on February 08, 2018. The Luxury Coat Maker topped earnings estimates. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Canada Goose Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the three months ended December 31, 2017, Canada Goose's total revenue surged 27.2% from C$209.1 million to C$265.8 million.
During Q3 FY18, Canada Goose's gross profit surged 40% to C$169.0 million from C$120.3 million in Q3 FY17. As a percentage of total revenue, the Company's gross profit was 63.6% in the reported quarter, compared to 57.5% in the prior year's same quarter.
For Q3 FY18, Canada Goose's selling, general, and administrative (SG&A) expenses were C$76.8 million, up 24% compared to C$62.0 million in Q3 FY17, driven by employee headcount increases and operational and selling expenditures to support the growth of the Company's DTC channel.
Canada Goose's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) totaled C$94.7 million in Q3 FY18 compared to C$66.1 million in the prior year, representing y-o-y growth of 43.2%.
Canada Goose's net income was C$62.9 million, or C$0.56 per diluted share, for Q3 FY18 compared to net income of C$39.1 million, or C$0.38 per diluted share, in Q3 FY17.
The Company's adjusted net income for the reported quarter was C$0.58 per diluted share, based on 111.6 million diluted shares outstanding compared to an adjusted net income of C$0.44 per diluted share based on 101.8 million diluted shares outstanding in the year ago same period. Canada Goose' earnings beat Wall Street's estimates of C$0.48 per share.
Canada Goose Holdings' Segment Results
During Q3 FY18, the Wholesale segment's revenue was C$134.2 million compared to C$137.0 million in Q3 FY17. In H1 FY18, the Company shipped approximately C$18 million of customer orders that were originally planned for the reported third quarter based on the order book, which was enabled by efficiency in manufacturing and sales planning, allowing Canada Goose to accelerate its shipment timing in response to requests from retail partners approaching their peak selling season.
The Wholesale segment's gross profit was C$68.5 million in Q3 FY18, reflecting a gross margin of 51.0% compared to C$65.5 million and a gross margin of 47.8% in Q3 FY17. The increase in the segment's gross profit and higher gross margin were due to a greater proportion of wholesale revenue from higher margin parkas within the Company's fall and winter line and lower material costs.
For Q3 FY18, the Direct-to-consumer (DTC) segment's revenue soared 82% to C$131.6 million compared to C$72.0 million in Q3 FY17, primarily driven by incremental revenue from four new Company operated retail stores and additional seven new ecommerce sites which opened in FY18. Additionally, Canada Goose experienced continued strong performances of its existing ecommerce sites and retail stores.
For Q3 FY18, DTC's gross profit increased to C$100.6 million, representing a gross margin of 76.4% versus gross profit of C$54.8 million and gross margin of 76.1% in Q3 FY17. Lower material costs had a less significant impact on gross margin in the DTC consumer channel as a result of higher selling prices.
Cash Matters
At the end of Q3 FY18, Canada Goose's working capital was C$155 million, reflecting an increase of C$10.6 million versus the year ago same period. The Company's total debt, net of cash was C$80.6 million at the end of the reported quarter, compared to C$162.7 million in Q3 FY17.
Stock Performance Snapshot
March 15, 2018 - At Thursday's closing bell, Canada Goose's stock climbed 1.28%, ending the trading session at $33.30.
Volume traded for the day: 268.42 thousand shares.
Stock performance in the last month - up 0.39%; previous three-month period - up 17.79%; past six-month period - up 62.44%; and year-to-date - up 5.51%
After yesterday's close, Canada Goose's market cap was at $3.57 billion.
Price to Earnings (P/E) ratio was at 71.61.
The stock is part of the Consumer Goods sector, categorized under the Textile - Apparel Clothing industry.
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