The clothing retailer Canada Goose Holdings Inc. presented surprisingly good results for the second quarter of the 2022/23 financial year on Wednesday, but at the same time revised its annual forecasts downwards. The more modest goals were not particularly well received by investors: Immediately after the publication of the current interim report, the shares of the Canadian down jacket specialist temporarily lost more than eight percent of their value.
For the most recent quarter, ended Oct. 2, Canada Goose’s revenue was CA$277.2 million. Thanks to strong growth in Europe and North America, it exceeded the level of the same quarter of the previous year by 19.0 percent (currency-adjusted +22.3 percent). However, the tightened protective measures against the Covid-19 pandemic in China weighed on business in the Asia-Pacific region. As a result, revenue in the region fell 2.5 percent (-0.4 percent at constant currency) to CAD$56.4 million.
Despite a higher gross margin, the result dropped significantly due to numerous negative one-off factors. Reported operating profit shrank 62.7 percent from the same period last year to CA$4.7 million, and net income attributable to shareholders fell 66.7 percent to CA$3.3 million (EUR 2.5 million). However, adjusted for special effects, the company was able to increase its net profit by 63.1 percent to 23.0 million Canadian dollars.
In the first half of the current fiscal year, sales grew by 20.0 percent to 347.1 million Canadian dollars. Net loss attributable to shareholders increased 24.2 percent to CA$59.1 million.
Because the company currently assumes that the pandemic-related burdens on business in China and the “significant macroeconomic and political uncertainties” will continue in the second half of the year, it cut its forecasts. For example, the sales target for 2022/23 was lowered from 1.3 to 1.4 billion Canadian dollars to 1.2 to 1.3 billion Canadian dollars. The guidance range for adjusted diluted earnings per share is now CA$1.31 to CA$1.62, down from CA$1.60 to CA$1.90.