Canada Goose Posts Q4 Earnings Results, Revenues Grow 7.4% Y/Y

Canada Goose Holdings Inc. GOOS posted fourth-quarter fiscal 2025 results, which reflected higher earnings and revenues on a year-over-year basis. Quarterly results benefited from solid direct-to-consumer (DTC) growth, backed by compelling storytelling, solid retail execution and robust momentum in the company’s Snow Goose capsule.

Shares of the company have rallied more than 19% yesterday during the trading session. This Zacks Rank #2 (Buy) company’s shares have gained 10% in the past six months against the industry’s 7% decline.

An Insight Into GOOS’ Quarterly Performance

The company posted adjusted quarterly earnings per share of C$1.12, higher than C$0.99 recorded in the year-earlier quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Canada Goose Holdings Inc. Price, Consensus and EPS Surprise

Canada Goose Holdings Inc. price-consensus-eps-surprise-chart | Canada Goose Holdings Inc. Quote

Total revenues jumped 7.4% year over year to C$384.6 million, backed by a rise in the DTC channel, offset by lower wholesale and other revenues. The metric rose 4% year over year at constant currency (cc).

DTC revenues rose 15.7% to C$314.1 million or 11.6% at cc, buoyed by DTC comparable sales increase of 6.8% and revenues from non-comparable stores. However, wholesale revenues plunged 23.2% to C$31.8 million or 24.9% on a cc basis,, due to reduced planned order book in EMEA and timing of shipments. Other revenues fell 14.2% to C$38.7 million or 15.3% at cc, mainly owing to lower employee sales and Friends & Family events.

Gross profit climbed 17.8% to C$274.4 million. The gross margin was 71.3%, up 620 basis points (bps) on lower inventory provisioning and increased proportion of DTC revenues.

Selling, general and administrative (SG&A) expenses jumped 4.5% to C$219.3 million, thanks to strategic revenue-led investments to boost the global retail network, planned higher marketing spend and elevated personnel costs associated with the incentive compensation. Operating profit was C$55.1 million, higher than C$23.1 million recorded in the year-ago period.

Adjusted EBIT was C$59.7 million, up from C$40.1 million in the year-ago period.

Canada Goose’s Financial Snapshot

Canada Goose ended the quarter with C$334.4 million of cash, C$408.8 million of net debt and C$541.2 million of equity, excluding non-controlling interest of C$15.4 million. 

As of March 30, 2025, inventory dropped 14% year over year to C$384 million, backed by the optimization of production levels to effectively align the supply of product with anticipated demand.

Net cash provided from operating activities was C$292.4 million for the year ended March 30, 2025. 

Considering the ongoing macroeconomic volatility and dynamic consumer spending behaviors, the company did not issue financial guidance for fiscal 2026. Nevertheless, it is optimistic about the brand strength, robust financial position and the ability to adapt to the evolving conditions.

Looking ahead, Canada Goose remains focused on building brand heat via marketing investments, expanding business via strategic channel development, boosting product offering and operating with pace & accountability.

Eye These Solid Picks in Retail Too

We have highlighted three other top-ranked stocks, namely Genesco GCO, BJ's Restaurants BJRI and Gap GAP. 
 
Genesco, a footwear and accessories retailer, currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.  
 
The Zacks Consensus Estimate for GCO’s current financial-year sales indicates growth of 0.6% from the year-ago figure. The company has delivered an earnings surprise of 37.2% in the last reported quarter. 
 
BJ's Restaurants owns and operates a chain of high-end casual dining restaurants in the United State. The company currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for BJ's Restaurants’ current financial-year sales implies growth of 3.2% from the year-ago period’s actual. BJRI has a negative trailing four-quarter earnings surprise of 101.2%, on average.
 
Gap, a specialty retailer of clothing and accessories, currently carries a Zacks Rank of 2. GAP delivered an average earnings surprise of 77.5% in the trailing four quarters. 
 
The Zacks Consensus Estimate for Gap’s current financial-year sales indicates growth of 1.4% from the year-ago figure.  

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This article originally published on Zacks Investment Research (zacks.com).

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