Revenue growth in Canada was largely driven by stores that were open in the first quarter which experienced closures due to COVID-19 restrictions in the comparative quarter. First quarter revenue growth in the United States was largely driven by DTC comparable sales growth. EMEA revenue growth was largely driven by significant retail network expansion and stores that were open in the first quarter but had experienced closures due to COVID-19 restrictions in the comparative quarter. Asia Pacific revenue declined from the first quarter of 2022 as eight out of 16 stores in Mainland China experienced closures due to COVID-19 restrictions in the first quarter. All stores in the region had reopened as of the end of June 2022.
Canada Goose’s revenue grew 24.2 per cent on a reported basis in the first quarter of 2023. DTC revenue grew 19.6 per cent due to improved productivity in existing stores represented by DTC comparable sales growth of 10.7 per cent, continued retail network expansion, and the reopening of existing retail stores which were closed in the comparative quarter.
The increase in gross profit was largely attributable to higher revenue as noted above and gross margin expansion. The gross margin was favourably impacted by pricing, and lower product costs due to increased production efficiencies. The gross margin in wholesale also benefited from product mix driven by higher parka sales on customer requests for earlier shipments compared to the first quarter of 2022. These benefits were partially offset by an unfavourable region mix with higher North American revenue and lower revenue in Asia Pacific as well as an unfavourable impact from the fair value inventory acquisition adjustment related to the Japan joint venture, the company said in a press release.
“Our first quarter fiscal 2023 results reflect strong early leading indicators for the year, and we have seen encouraging trends in store productivity,” said Dani Reiss, chairman and CEO. “This fall, we look forward to our planned store openings, in some of the most exciting cities and shopping districts around the world, as well as our upcoming collection launches, thoughtfully curated and designed to drive brand heat and capture new consumers globally.”
For the second quarter of fiscal 2023, the company currently expects total revenue $255 million to $275 million. This outlook is based on a number of assumptions for fiscal 2023, including improved traffic and lower levels of operating disruptions globally, including mandatory closures, in both company and partner operated retail stores, relative to fiscal 2022.
Fibre2Fashion News Desk (RR)