Canada Goose, a Canadian down jacket brand, recently announced that as of June 28 According to the key financial data for the first quarter of fiscal year 2021, sales fell sharply by 63.3% year-on-year, and losses expanded. Canada Goose is working to strengthen its direct-to-consumer e-commerce business.
Dani Reiss, President and CEO of Canada Goose, said, “Adversity promotes change, drives innovation, and creates real winners.”
“For Canada geese, this is especially true today as we begin to see signs of recovery around the world and as we head into our most critical (fall and winter) seasons. In places facing uncertainty, we practice We have gained discipline and flexibility; where we see opportunities, we accelerate strategic deployment.”
The company is stepping up plans to develop “e-commerce direct operations and omni-channel innovation that can be expanded globally.” Canada Goose has stepped up investments in these areas in preparation for the critical fall and winter months. This includes the launch of mobile omnichannel capabilities in stores in the United States, following a successful pilot in Canada.
Canada Goose has also reduced its retail investments and refocused its investments.
It is worth noting that Canada Goose’s newly opened stores this year will mainly be concentrated in mainland China, because the recovery of passenger flow in China is better than that of other markets, and luxury goods consumption has shifted due to travel restrictions. Domestic.
Canada Goose plans to open 4 stores in Chengdu, the first of which opened in June and its current performance has exceeded expectations.
Currently, Canada Goose has 22 directly operated stores around the world, 21 of which have reopened after the epidemic.
Canada Goose also plans to significantly reduce inventory before the end of fiscal year 2021 (as of the end of March 2021), reducing down jacket production to about one-third of the previous fiscal year.
As the negative impact of the new coronavirus epidemic continues, sales are expected to decline significantly next quarter. And due to the change in strategy, wholesale shipments and wholesale revenue will continue to decline. While direct retail channels have not yet ushered in the peak sales season, Canada Goose said it is preparing for online sales in autumn and winter.
Canada Goose key financial data for the first quarter of fiscal 2021 as of June 28 As follows:
·Sales fell 63.3% year-on-year to CAD$26.1 million
·Retail sales fell from CAD$34.8 million to CAD 10.4 million; wholesale sales fell from CAD 35.6 million to CAD 8.7 million; other income (primarily personal protective equipment) increased from CAD 0.7 million to CAD 7 million
·Gross profit was CAD 4.8 million, gross profit margin was 18.4%
·Operating loss was CAD 59.3 million, operating profit margin was negative 227.2%
·Net loss expanded to CAD$50.1 million from CAD$29.4 million in the same period last year, with a diluted loss of CAD$0.46 per share
·Adjustments Loss before interest and taxes (EBIT) expanded to CAD 46.5 million from CAD 25.9 million in the same period last year
Adjusted net loss increased from CAD 22.8 million in the same period last year Expanded to CAD 38.4 million, diluted loss per share of CAD 0.35</p
