(Toronto) Canada Goose Holdings CEO says luxury parka maker’s latest fiscal year showed him the company has ‘still more work to do,’ in part because it tried to do too much in just one time.
“We haven’t made as much financial progress as we would have liked,” Dani Reiss said Thursday during a conference call with financial analysts.
“This was partly due to external factors beyond our control, such as the continued difficult consumer environment and mild winter.
“But after a period of rapid growth and retail expansion, we also recognize that our resources were spread across too many priorities, impacting our ability to achieve our ambitious short- and long-term goals “, explained Mr. Reiss.
The comments come as Canada Goose reported net income attributable to shareholders of $5 million, or five cents per diluted share, for its fourth quarter, compared to a loss of $3.1 million, or three cents per diluted share, a year earlier. early. Revenue for the quarter ended March 31 totaled $358 million, up from $293.2 million in the same quarter last year.
On an adjusted basis, Canada Goose said it earned 19 cents per diluted share in its most recent quarter, up from adjusted earnings of 13 cents per diluted share a year earlier.
The company’s shares closed Thursday on the Toronto Stock Exchange up $2.41, or more than 15 per cent, to $17.93.
Beyond the parka
On the product front, Canada Goose’s president of brand and commercial affairs said the company will continue to work to be “the brand of choice beyond the parka.”
“Canada Goose is world-renowned for its warmth and outerwear. Our opportunities and aspirations, however, are much greater,” said Carrie Baker during the same call as Mr. Reiss.
The company began selling and marketing more of its sweaters, windproof and waterproof clothing, and footwear in recent years.
Now, Mme Baker said she would look to make “more significant strides across the style spectrum while retaining our heritage” and “more closely manage our social media content to strengthen our celebrity and influencer programs.”
Canada Goose on Wednesday named renowned fashion director Haider Ackermann as its first creative director. Her first piece for the brand is a limited-edition hoodie that was modeled by actress Jane Fonda and will be sold with proceeds going to Polar Bears International.
Ackerman’s first seasonal capsule collection will launch in fall/winter 2024.
To “get the most out of the store network” and refine the company’s luxury experience, Mme Baker argued that Canada Goose would also slow the pace of new store openings, better balance shift schedules based on traffic and optimize the replenishment process.
The company’s ultimate goal – to simplify its operations – is “fewer people working more efficiently on fewer priorities,” said Beth Clymer, Canada Goose’s president of finance, strategy and administration.
The company laid off 17% of its global workforce in March and, by consolidating teams working on “overlapping tasks,” eliminated more than 25% of management positions, Ms.me Clymer.
The company also eliminated meetings it deemed unnecessary and deleted reports “that were time-consuming but not being used to move the business forward.”
It will continue to examine these areas closely in fiscal 2023, in which it expects its total revenue to be in the low single-digit range on a year-over-year basis. ‘other.
The company also expects its full-year adjusted net income per diluted share to increase by an average of 15% from the prior year.