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TORONTO - Canada Goose Holdings Inc . (NYSE:GOOS) (TSX:GOOS) reported fourth-quarter earnings that beat analyst expectations, but revenue fell short of estimates, sending shares down 3.2% in trading.
The luxury outerwear maker posted adjusted earnings per share of C$1.51 for the quarter ended December 29, 2024, surpassing the analyst consensus of C$1.10. However, revenue came in at C$607.9 million, missing the C$615.24 million analysts had projected.
Total (EPA:TTEF) revenue decreased by C$2.0 million or 2.2% YoY on a constant currency basis. Direct-to-consumer (DTC) revenue inched up 0.7% to C$517.8 million, though DTC comparable sales declined 6.2%. Wholesale revenue dropped 7.5% to C$75.7 million as the company continued to streamline its inventory and focus on brand-aligned partnerships.
Gross profit rose slightly to C$452.0 million, with gross margin expanding to 74.4% from 73.7% in the prior-year period. The company attributed this improvement to pricing and lower inventory provisioning, partially offset by product mix.
"Our third quarter results highlight the power of strong execution during a key consumer shopping period, particularly in December where we saw significant acceleration in the business," said Dani Reiss, Chairman and CEO of Canada Goose.
The company ended the quarter with inventory of C$407.4 million, down 15% YoY due to temporary production reductions. Net debt stood at C$546.4 million, compared to C$587.4 million a year earlier.
Despite the revenue miss, Canada Goose maintained its focus on balancing operational efficiency with strategic investments to drive brand momentum across all channels.
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