GOOS - Earnings call transcript Q2 2022 | Canada Goose Holdings Inc.

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Operator

Welcome to the Canada Goose Second Quarter Fiscal 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers presentation there will be a question and answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your first speaker today, Patrick Bourke, Vice President of Investor Relations. ahead. go Please

Patrick Bourke

take good as President and CFO. With are the to This we me prepared limited time. will Thank one allotted to to CEO; morning, ask and Reiss, each will Jonathan, and and from as and questions. Jonathan Dani These remarks is of subject Each statements. risks call, be Certain including many you, in were our allow Dani statement everyone. applied making assumptions your possible without could Sinclair, financial limitation, includes After within such considered and EVP outlook, to from in that the uncertainties these forward-looking discussion results differ to including, and forward-looking statements. actual statements. those forward-looking factors and Q&A cause material materially questions projected

forward-looking available Additional in well as factors most annual documents information press section is The report. section to update on our as these and as earnings we obligation our no Investor available of call forward-looking these undertake of These statements, revise today, our any only also regarding in release this on Relations the statements. Factors Risk or assumptions of speak the made and statements of website. are

Relations call certain turn include of commentary will today Investor which Dani. of in are our reconciled table I financial Our will website. to that, the at earnings release section non-IFRS available issued the and on measures, press the With our end the over this morning

Dani Reiss

performance, taking leading forward momentum today, the we everyone. footwear that call, exciting an I we performance of will another I results. about strong of shortly. all overview Thank strategy of quarter. the are second very our good begin, overview look and Thanks the drove share joining detail Goose, business business peak today's our less demand, in and collection from for into see And through Across and season. On provide milestone you, for collection. launch the accelerating Patrick, our our you positive week feel channels, greater commercial those good indicator, a very first-ever quarter us to away deliberate To heading morning, an today. than strong will Canada we yet in I the

recovery The revenue, with exceeded year, XX% our grew from our by expectations. strong last has second PPE revenue deliver DTC sales growing results quarter year. XX%, excluding continues Total by to showcasing over last strong was our business brands This globally. in as fueled the and as the the XX%, across partners. business growth by continued demand quarter, digital up for high retail a had also a strong our our well quarter Wholesale from

at trending being the DTC and globally, every versus a region, performing last Mainland XX% year. business up are with particular we China growing in standout, well Looking

head as are very Looking peak season. we optimistic ahead, we our into

are be the of to pleased more As year. Jonathan position the financial shortly. to details in a remainder share our such, financials raise our about we outlook for will

our altogether more Canada history. our strongest category, one of in most significant Goose with selling launch the footwear, are than new exciting entering an of We footwear. milestones the season X-decade

perspective category, As lifestyle we've luxury, the the completely balancing discussed, is a and our brand. expression we new which are of ultimate bringing to performance

bringing and for innovative men to are both X we styles launch, For market women.

ground of we market experts to validated confidence process, performance-driven We do to it until us -- Adventurers, bring our of warmth. our development team consumers harshest multiple broke have our Like new with user crafted Boot We designed moment, we the a products environments in and for for extreme rigorous for this Journey product of the our honored. cinematographers its a thousands main the and to trails and of demands providing city. testing. performance design comprehensive wanted extreme in ultimate most kilometers the and of know athletes, have part offering. performance The play get the hydra the to is the it. in researchers As combine archive not our and global tremendous logged roles. luxury Italy actually intelligent Goose is protection designed anything

a So, shop our pre-sale the the in and them demand natural of weather live community globally something will a temperatures collection base platform. working the campaign this Brand been asking and only next in year boots be we in early. collection first wide a in footwear week. Last through to on Footwear store know been our our work is of diverse week, versatility for we product limited portfolio, is in for. camp The worn on have access essential for in designed with modularity category XX% ranges collection offering mind, for collection. The of with with across allowing Power activities. our launch multitude through selling and our have X a to results step syringe, strong the conditions True we with hosted to customers intended open signaled

very perseverance. the real we'll week this real Starting we've it Over people. to shared am their explore resilience continue look nature. with next of you'll our moment, and this see to of that Tootoo, a Sarain to to you stories share Romeo I forward next the at And years, Beckham, a be e-Jordan and heroes, campaign, with means in what more stories Fox excited way of stories quarter. I be sharing and exemplifies force

cold material winter. revenue to exposed. the our week, dynamic Plaza seen is first Coast opening. that much chasing margins supply testament X our asset store live others, snowstorm Changing products always we not outerwear globally. gears. a short supposed our to we environment headwinds function-first we made and that Despite to environment, advantage. daily, are indicators been is. chain with next-generation our constraints we simulates a first The reaching for to strong fall South last our the have at sustainable making Unlike brand, in unprepared became an California, the Because home one. not shipping in ever today's is lifestyle and This to flexibility XX production expanded keep innovation just a room. of be supply face the It continues our this have snow assortment, this, as the Costa new States. chains is strive client of and they existing stores decision United room In award-winning I'm of supplied. to that of demand in to year, opened Last the products today. it are advantage fans, we This an That decision. as be across purpose, As expect we and store Celsius. to and Mesa. how relating and losing authentic temperatures create minus do luxury the seen to continue where California experience store have was our experiential in any low-cost environments snow We’ve and excited category low or to to brand since months to our our we is performance our bring on cool a really up or competitive retail the truly room in believe offering in people of not drive Weaknesses supply degrees

and business around lion's Retail across clearly know world. consider knew have value it driving performance. this just are ahead. our traffic that than at harder retail have grown of our our we versus that well. trend, drive DTC digital looking accelerated months pandemic, last know, DTC We the year And the the DTC a revenue store are ever XX% as same productivity stronger this our We advantage. living into we time much of this growth year, have you before be strong we network We share brands saw indication our our have And across we year. become year. Both it our were projected that growth. purposefully as years, forward, than To of exponentially the the total time, a DTC not this trajectory. And results stronger continued key At in continues to our through this growth. see strategic strong before last has to X close, we businesses last unique many than our markets globally. to retail expansion business In positive We digital proposition. October, and acceleration and a a quarter was show our nearly we

financial is We it with resonating regions. results to business clear see continue over season. And over in with over lifestyle the all that, our peak entering position channels go turn pleased Jonathan a to of consumers in all see Canada the to accelerating demand world, I'll and good I'm that Goose outlook. details and And our such to all across it's

Jonathan Sinclair

morning, you Thanks, for thank Dani. joining Good everyone, us. and

performance raise our stand to our We're are has to our to themes continued outlook. on key where X be exceeded quarter we there second are Reflecting that The expectations, accelerate. out. position in today, and a pleased

business, our across leading strong we of Firstly, indicators demand. see

Secondly, chain advantage. supply incredible is of an the unique flexibility our

is sales The in with was major increased direction. and the in $XXX we're quarter. e-Commerce Total have balanced now PPE the comparative same rest time contributors, China demand seeing outstanding be Starting is we revenue the million, at foundations top in much the the temporary right XXXX. Thirdly, an for place line. and continue strength it this excluding business to by the than more fiscal to year. XX% Mainland last moving of

revenue the a XX% drives and the million. are from our unusually as productivity current to closures level, At In year. significant sell-through. were wholesale a existing environment, the wholesale $XX to in reflects and Our our increased DTC earlier fulfilling due not well with pandemic. than partners operating XX% partners year last This period. to above as to experience shipments our the increased well of higher stores revenue a a normal all last Retail or majority the retail by the $XXX comparative in requesting early shopping drove traffic a commitments last more stores geographies for million. reversal increase order factor better our by consumer of abroad. Growth active are late products of channel year,

performer sales. are varied This performance given XX% last was of total our by excluding was regions performance and growth. that revenue growth important one greater reflects the the encouraging China recovery temporary revenue degree top a of XX% of growing physical standout particularly our status Mainland PPE retail most geographic complemented year strong these Our on across XX%, is This traffic strong and delivered by with e-Commerce quite runway of still impact world's in markets. retail the momentum the the of DTC All markets. than disruption.

mix. and in a selling in us XX.X%, This were In we gross significant at to uplift from product Wholesale Moving pricing while gave on core wholesale, ahead. margin. came XX.X%. was DTC season a

We lower months, earlier-stage from product. also had gross In the on our lower as peak our store expected trading than shift year, earlier higher-margin to C which our back we call. distributor in outperformance discussed was benefited last mix due sales, expected styles. sell-through is to DTC shipped in margin to

expect wholesale. meaningful seen already uplift tailwind we've to We a from this the pricing drive in

As remains a DTC historical result, levels. our annual expectation margin with line in for gross

As creation in demand profit. This total initiatives, point $XXX million, expected, XX% timing by a last was up year. and from inflection spend margin now in at including SG&A and QX. driven an We're strategic shift was for incremental

impactful. the incremental and the more decelerate. will mix DTC of further uplift SG&A from The for growth leverage, the will these year, drive shift remainder will we be For investments expect revenue

in adjusted year at You can share. adjusted was see despite growth, to under grew EPS last just outsized XX% and already this of a margin X.X%, beginnings temporary the EBIT $X.XX QX SG&A

demand Moving broad-based see we to our this quarter, across beyond business. continue

in environment. As a vertical we supply-constrained not today's manufacturer, are

position staged We strong finished in have a goods.

and upside We when at the delivering in-house Wholesale, This products them we're of to position on commitments. our many this capitalize we way, canceling in In production. quickly a are We're In delaying brands puts earlier. fall/winter. for best getting in on our the DTC. partners have flexibility orders, can time possible

This are of supply remainder has shipping been resilience beyond chain of consider our we our position captured our book, complete order in in it good outlook. The demand to materializes. reorder upgraded if extends the own we manufacturing. high-quality a our As

team our cheapest. As collection global to and In said, partners. the go Finishing at to be with not bringing the year our best expected market to we to manufacturers volumes. are time XXXX. massive This disruptions proud is fiscal for the on our Dani upgraded our in with production, a a we footwear first up to both testament outlook best places, and

$X.XXX Total $XXX XX.X% In an growth environment, our in ranges to key As with margin this EBIT revenue billion, to adjusted wholesale of of of per or metrics. billion DTC And peak assumes expect today $XXX lastly, we mix mid-single between trading relative we of EBIT adjusted adjusted our between representing enter $X.XXX million share revenue into and the in material $X.XX. digits $X.XX months, increase million, macro economic and outlook various now the XX% assumes our disruptions following for XX.X%. no and experiencing what markets. pandemic between earnings we're this approximately

what's In through shift the QX, terms QX. growth both to for means embedded QX remember of and DTC accelerating

Our wholesale been order this has book earlier shipped largely year.

we're other complemented to at the Strategically on expect together, from by of profit coming stronger. slightly significant We less revenue, well way. it DTC At SG&A a will onset pandemic, financially, of Putting drive the uplift mix. talked we out gross and all the growth grow rate profit about side than a our total this year-over-year.

advanced journey focused alongside our more elevated We have and DTC distribution. rapidly wholesale

price the consumer. on have a lifestyle have raised points, the the We in become brand and eyes we of continuously bar true

in Our resumed journey, versus beyond to pre-pandemic Q&A. you and to We your additional our unit forward progress on look levels. our upside. And base support that, With we interest and operator this next pass appreciate growth on looking begin this huge I'll the updating to the over traffic of retail has international call. represents recovery year,

Operator

question from line Boruchow [Operator comes from Instructions] Wells first of Your Ike the Fargo.

is line open. Your

Ike Boruchow

If like think Jonathan, XX%. I X-year back over much more of some revenues something back just to we you than meaningfully The I were your meaningful able I'd so Can on kind a I guess, multiyear. giving down to where XX the looks that level first kind stick, hockey higher the half. of the anything confidence I I more there's look from comes Dani half a and can a It XX% -- months, just tell half, the volatility so just dynamic be confidence? implied of business love this will back big through you XX% a lot just with what's the get us us accelerate you on that up XH-XH year. think know in perspective comfortable is up us to walk basis.

Dani Reiss

Yes, absolutely. Thank you, Ike.

And decided major a wholesale good actually that, alongside has strategic DTC resize us, we for our really So and this is change rapidly it The thing. have it's pandemic, a to accelerated our business. journey.

wholesale as winning strategically two view ago and a feel not we winning being do with we a -- So in comparison. that's that line years reasonable

Jonathan Sinclair

So how shifts peak which we characteristic if fourth revenue selling and back. in said sell the by what a and I as you that, that the strategically think limit fiscal, a driven of about for channel. We naturally QX that our base we wholesale is quarters manifests is that sell-through. itself, it third pulled to month

of expect year further represents, you as remarks, It's the in I guidance my upside absence fiscal for be as said and with in traffic, international we revenue much 'XX, 'XX. higher-quality So in beyond see -- well prepared above our upgraded current much do this comes fiscal more distribution to which

Operator

And of question the Baird. Jonathan from your line next from Komp comes

Your line is open.

Jonathan Komp

you growth the follow on the channels, across If what one your to DTC, could share thinking could your driving think wholesale, how shaping rates than across other, guidance sustainable seeing through And is just on in the I trend store the maybe up how thoughts that more is DTC outlook the and of recovery then and the and and you're upside that. the more if be. productivity e-Commerce could

Jonathan Sinclair

Thanks, Jonathan.

the upside. the with let's think start question I So about

that's Therefore, wholesale. range the the So on ship essentially, guidance, either driven upgraded itself really of will performance. our about shipped DTC by QX. largely the already obviously, we've within or is within product context But that's expectations

the it that also we year way. the consolidating really We're seeing and when to and further it’s last our last clearly but pre-pandemic DTC, to Now recovery made to on we're levels, back are seeing comes advances in said, we're store And That on certainly compared night apart. productivity. e-Commerce important, not year, day. we that's well

very is the which this shape evolving. we're way pleased So with and the in

Operator

line question from Suisse. of And comes Michael Binetti Credit your the from next

is open. Your line

Michael Binetti

Two questions.

First, a love in major it product. wholesale, jump And that's how transition nice Dani, to going the I'd all growth you obviously, there. to is hear transition maybe covered for guys a the now then

out the mentioned the early, good. requesting underlying look early into you being You indicators potential versus of you wholesale Jonathan, leading the the Did shift yet the might indicators strong How And said delivery you on growth side is demand? have inventory? getting accounts for you just any of on guidance, able need if but pulled wholesale into read on side. that that that or mid-single-digit the as replenish bake XQ a also come do -- might any you're mentioned to wholesale incremental there XQ that deliveries the

Dani Reiss

with Thanks very we I can company high-growth are be non-fur our I to we for we we're as to your the performing make are. And fur, and the regard well question. to in expected, said before, and And the our confident plan. that tracking marketplace, continue transition are that

to outlook of that continues great we've confidence. us proof we are on a increasing year. the years this that significantly And give for this success that's And that accounts with had point non-fur lot that, brand. a build think I where So our wholesale of

Jonathan Sinclair

the guidance wholesale, in have fur we're is obviously, And therefore, giving. think demand we've some wholesale also very we and that reorders inevitably Yes. comes have The I and but the we when into accommodated we're guidance that upgraded the numbers encouraging that somewhat. seeing, will it to the of baked that's

Operator

next from Chen Cowen. is Oliver from question Your

open. Your line is

Oliver Chen

The footwear launch is very exciting.

and and terms in financial the how the do as about also plans wholesale us inform as could think assortment speak ramp-up well strategically assortment? versus you to help of you models, opportunity the launch the and also you direct-to-consumer our If to evolve

Dani Reiss

Thanks, But years. lifestyle sort not brand, this significant me footwear I X position view, time, we've in over it Oliver. our very We something to put the we a being the marketplace And year. of is And expect truly design be and base the doing been it's help a a least performance definitely exciting until for By point here of forward, Yes, meaningful this long performance best-in-class important about will do us be a that to to for something brand. revenue right that for year, at new this was a It's contributor into term. financial incredible of of we're I've most one long a think it and for marketplace for product. category from we're launch is create dreaming been in this things put a time. unique which at to and know performance. the same planning

consumers who that they super I'm now are think And the where used and ways for multiple looking is purposes. we think and things about and I excited can levels, quality possible highest I this provided today multiple in it.

Jonathan Sinclair

initially, most time. as can when how we're leaning we core It's about think we at in meaningfully the something tailwinds has, think introduced gross the increase We time, offer volumes, at DTC, we it are And fully like categories we from not products new. that rolling that this certainly lower is to we where characteristics, therefore, It's we margins into scale. expect footwear a financial the And heavily we nothing something if in curate and and it that into long for category least new the outset. expected. over strongly. out, we about the that all a profitability where perspective the the And been fund by surprisingly. realized of we of it's small expanding We've our

DTC But that very at well. always to that a it's tell small accounts mature, of the influencer in well that will as ultimately, wholesale -- will consumer. as we are story number important because We so but the

Operator

Yih Your from next question is Adrienne from the of line Barclays.

Your open. line is

Adrienne Yih

locations? stores are here. but hear North both My great coming nice along seeing to to America China tourist is question And in tourist European Obviously, reasons by off is, is you and October location, early what Great. very a strongly, the start the tourist geography? that

Dani Reiss

international some overall the our for international there We we tourism that view -- will contribute going significant -- assuming year that after, Thanks in was that's next obviously, back of a us. to I but expect year as to question. lot is Yes. tourism tourism the point. at we mean and the to -- fully be at this our or future your very and since It thing business. business know upside did a come in a down positive point that and come past, for back

Jonathan Sinclair

we're good growth was we've trend. we around continuing to seen the the that going a and just numbers world, I and that's disclosed, that seeing add just in

Operator

ISI. Your next Saad Omar Evercore from from question is

line Your is open.

Omar Saad

a Would external a impacting sounds with China you the e-Commerce where remind like into us love business luxury should in winter could overall, are market demand different we we owned good. through as are e-Commerce the trends both towards it the It business bit factors Tmall been guys especially your the you Olympics. kind It's your journey, storage very as if controversial And the think and dive to a that of about segment journey, head there. and on and more. over go contributor how

Dani Reiss

accelerating. market us. growing It's important, Yes. a for and very very been China is strong

well that resonate very I products seen think that our there. we've

think still China footprint compared to relatively view, small many we're I very that positioning from of brands. small -- a in other point

we're we have today, Tmall now well, e-comm. stores in online We tried XX and and and JD as

footprint, luxury to our China. relative it's still And so with but in -- brands other

still And runway We tremendous amongst with there. long growing for awareness to products go. our way consumers, amount so affinity a we see a great of brand see

we're So positioned we feel we're marketplace. well -- that the in really

Jonathan Sinclair

the of exactly good online, them as existing all want growth them and growth seeing or the great across new of lens we we're stores performing well. in new look seeing we're through as And stores, it if we at the healthy to, stores, store existing are base

of confidence. the that with Gives us pleased in So a we're lot progress very market.

Operator

Sole line The from next is of Jay UBS. the question from

is line Your open.

Jay Sole

Great.

growth bit the us possible direct would of if wondering drove give in it to breakdown of little Just a consumer quarter. a what be

just if at on levels? your those Specifically, stores us the existing And stores how growth can footwear comp how can much stores? look also base, give per you a below, then you get talking margins. little above? existing eyewear Dani, new versus foot to idea the square if us driven Will And sales an you in color there? over take are they was an they the by similar bit Will of expect then in to I'm gross be you it lastly, about looks be like. look would will to idea that of what super give pre-pandemic to just Any margins? time. margins margins footwear And how be helpful. long ramp

Jonathan Sinclair

Okay.

in see think and night is shelf I yet that's pre-pandemic levels, we we So very We've numbers versus second we opening experienced, density, very in as the lot through I rebound we terms in seeing We're how there were a by last to overall the the the we've reopening stores good and in day not When therefore, existing business, our encouraging But compared trend. the it very we're year and went quarter, of a contribution it's recovery. been that stores a healthy in remarks, mean, encouraged the to in it stores. I before. and the real said a our quarter and something growth I also And my in closure along, that been the we've the I base. seeing smaller. their nevertheless, It's said at expectations. key But -- to all DTC much was comes as also improving period through said of slide. obviously, -- where margins then the gradually are think are I've

that But experienced I now, Footwear expect Yes, over of get get inefficiency to Do apparel not direction start And any you over initial comes you we very benefits we're above? it categories. don't. the that the it comes And our margins, I time. consumer we've the as that's it I to other when from what got said, reaction of no it. margins? to super gross I is up Do footwear think right then launch of different when close I and I you different. category. in to just And in as be travel. sort core do. to scale, the No, That's time. excited with expect some

Dani Reiss

I'd like -- categories. add to at have that, we in experience agree. launch to to just I new

playbook were And Down We of can normal the which or category our we years ago. follow. than time we margins have over Lightweight point a Today, at business. I time. started to that Lightweight When the X lower Down, X launched XX% our represents

X Our well margins the well. holds are approximately margin ago, years, of you'll in the and very as in healthy and is which now years tracking same XX thing $XX the The rest launched, business. revenue recall, knitwear, we line it's with for and true over million in

are at playbook me have that on brand. launch gives a our launching right point. way, right to into and of and responsible is same our applying way proven a new the for and getting them. this are confidence and playbook categories a where footwear authentic we in exact we that lot this we the are So in And

Operator

from And your Trading. from next Williams Sam is question Poser

Your line is open.

Sam Poser

I that business probably thinking given us happen wholesale assume, in that QX X. based about secondly, shipments just And for right? way have of can fall would the than in the I be your down wouldn't -- QX the will flowing on expecting and season be more you early Am down is that the quarter, to some One, year? magnitude -- give you're you price this increases be I fourth business as much. I for or idea the the you the took of

Jonathan Sinclair

So just on business. say, yes, to to with what I'm order, reverse we're the take you're pretty aligned going wholesale those thinking in

as me margin efficiency, and scale on year think hear pricing with you Typically, algorithm, something year with we create this I and and describe any then the that's than That's frequently. to pricing we different headwinds. no answer our gross and goes that have tailwinds other you than And that another well fundamentally, you experiences. is development the of Typically, the inevitably, we've as there, new digits. you with This no is year headwinds mid-single product different this deal input year pricing then same of taken in get but that. investing inflation. cost in hit

Operator

We your from Bank Ohmes America. line question Robbie of have next of the from

Robbie Ohmes

a be maybe just why follow-ups. think, It Dani is, quick I'm it's demand sort trying for have remind on would us sort sales is your APAC. year? -- Maybe and like can down much seem on to of for or Jonathan, it of question, wholesale been. position of well, as understand out strengthening. significant close for as Kong then you a just would APAC just that's Jonathan, the in thinking as just would the Hong back And two demand. I opportunity for to your you second follow-up ever half impacts either Just stronger how inventory this given And store sounds like a high wholesale? I the playing

Jonathan Sinclair

in at QX end I because order Yes. honest, you September QX it's level asked, of take cyclical. the so the those at first. QX a mean at the inventory it's it mean end let's to at than so of inventory, be I is or higher

the all we that of that gotten that point. we're stage make inevitably, and amount in shipping From high you're about. the We're be and no And is the of it to inventory regulated not the and talking through, with us never a sure be with that we inventory both. have where typically, very We've of where accretive remember would otherwise you're ranges with and different. we of it puts or inventory. a with a business deliver us. inventory by revenue this distribution building because for support physical brand is in This puts don't a a channel either and this prefer wholesale that therefore, presence, is selling channel everything because so it supplied the us opinion pleased the locations view, leaders point or it to you're at channel We

business it always is if because we think wholesale. wholesale. comes of they're very a back, the fulfill what very we market your sense, at and makes it we of a and starting prior. from Hong And It's heavy on privilege and at out been we Kong that's moment. if Kong, than a The had in sensitively over amount coming to why small and to would we grow inventory it particularly because the want year And don't about and it to the there regulate sells so Where them our we in channels -- there last it's we APAC, we're channel. but own very low get And orders, them; point. quiet fraction rather sure it's this question was a of is level make intelligently. When base, product Hong not, numbers

Dani Reiss

vertically back like in the Yes, I'd being that Canada manufacturing we sense that just have add in the part. of to inventory much, that the of We inventory little about bit come in and time we is right but to integrated very been our part, has feel not available. a -- model validated amount this

deliver material a is raw us in see this any year a experience hand inventory the for for -- to -- out to playing here, to really be and we on able way finished where inventory our next commitments. of more inventory that that we're it also we going goods time, And to well happy we're leaves both position and been really, and position, and not that's it's our positioned part strategy to. manufacture shortages goods supposed the have it's in really year long I are think on We all and for

Operator

is of Your Meaghen from the line next question Annett.

Your line is open.

Meaghen Annett

some if just introductions, you're collaborations America new could a talk performance you and with resonating product a the just And levels customers about talk there more particular? of bit to initial you Can bit relative more And to in those trends in recent so on? including QX to colors, Canada, in seeing date. how the are North response the in maybe about maybe pre-pandemic

Dani Reiss

Yes.

very Our been has pleased the the way new market we've to them. very, with responded

knitwear well. like mean, core styles new spoke every to how can categories I about many And how and selling -- as really, different that through have we're and grown earlier, season. we really that's I I Our styles speak and coming the

has Our well. collaboration Most Angel recently, Channel dropped very are performed really well. collaborations doing and

cases. ago few many also was that collection, has through market question well, a in a the pastel selling hit out extremely which performed Our weeks

base to did that community big Our to one the confidence our that we also which in presale camp I'll been week, it our and the of product to amount hits, for expansion talk sell through demand XX% category, a gives me on Cypress too. as look tremendous in about sustainable collection, just mean fabric, collection, is more an have Lightweight at well. footwear Down I

Jonathan Sinclair

within these performance is remember both it's the sales or think that we're the is also in actually seeing, domestic demand much brand expressed within to this being seen that it testament back either health. this we're dominant it North to to the demand, I of And or a America, as is encouraged. Canada, very We've Canada And strong really comes in that nicely. U.S. pretty U.S. in Canada comes markets, now U.S. when and when huge is coming performance

comfortably last encouraged that. really above are We year, by we're very and

Operator

BTIG. question of is Camilo next the line from Your Lyon from

line open. Your is

Camilo Lyon

go do And margin East U.S.? different We ask opening store opportunity colder store know just wanted as west, parkas? of rate it's sell-through see online you. or the California Coast higher store days, infill question from curious and for I'm snowier a parkas the a to opportunities in a margin you there's opening stores your the do those greater you opening. where perspective come more U.S. at where than further a that but I about heavier main markets early on

Dani Reiss

of South there I like us. we or volume milestone know for and we have Well, West And but Coast locations as to new you opportunity Coast that products we healthy new different brand Obviously, opportunities have we the a store have before can opening openings your awareness very of stores we we question. firm that climates for And our to opportunities what of and that pipeline different we'll have ones, the tell for and too. and in the about well. kinds Thank look also as potential and up, places increase North encouraged important very I in the do out at I'm make disclose North the the American traffic products America. those is sales have you us kind existing fans

in cold weather weather know So don't to sell clothing. we cool that we market to need be

the a seen the that also clothing of of have so And We strong marketplace. multiple at responses right in was very really a strong, demand that as for markets. far and has been signal

Jonathan Sinclair

-- best Coast, And the mean a It's Coast Coast to the it one. West about versus when unique not I East is West comes stores I thinking was think climate.

We enjoyed don't and margins, the around other stores don't have reason and any U.S. that's shouldn't in that a in how and we've sales we -- good of levels that. climates world in reason think we're we it the Canada, why see we super like with why you the happy we about that normal market. similar performs, see And if in a times density any Vancouver, see in got store Indeed, clearly too, in

Operator

next And Roach. the of question your line Brooke is from

Your open. line is

Brooke Roach

provide the margin been in you to this year's in to I your and costs, share talking recovery sector both profit outlook? view topic, quarter? half. the was material the remarks, a rest what and can you relation in to bit to of on which prepared point current terms wondering color your a XX.X% second for XX% you for of plus thoughts And seeing margin you're raw In a on talked this an a inflection a to if that, across little XX.X% profit unit relative the more could point of maybe few path to have

Jonathan Sinclair

Sure.

but think with I I when last a that's complemented model comfortably And profitable, over we to not of we've is beyond that, to XX% ourselves retail very that already And back business level. going part a this powerful time. see that When This -- business very margin And that quarter mentioned XX% XX%. the on at think was is above important. going into the a XX% that's a talked be level. the going confident about business. the be I firing strong we online got really we're cylinders, that's very form we and to XX%, moving all that's

call to are DTC then And manage about focused that we positive in which That's mid-XXs at as where and think cost to margin for in so That's are and out. We're we step raw overall on material And a levels, very managing mid- direction. to be. that's it channel and to honest, we gross the our the seeing gross the way we're we high margins inflation, seeing for XXs expect not margin, not that is anything when said before, the and this historical gross we be and wholesale. reaches it. reaches I unit anything where

Operator

CIBC. We next have line Mark question of the your Petrie from from

Your open. line is

Mark Petrie

in do I direction QX give appreciated. skewed some heavily very just And bigger want foreseeable could become parkas? channel ask the any in to future? think remain towards part to mix. business you you Or QX? of more about the regards just wholesale falls you do of your detail will I would a this about think that that be product just that, the but with that it commentary from Can the know mix us non-parka seasonally,

Jonathan Sinclair

think into if move therefore move parkas you think and we through you the the start quarter, So colder as clearly, weather pick mix, to up. I about to the

June. our through a to you how the got season doesn't to not all about we you mix events Our for It -- of our more kicking our when parkas of of spring talked year August summer QX, continues sort does something season off categories from in and accurately. the stacked full that up stop long. And and It's in. July QX. -- mix had Then in of said, that but good the still that stop that performance we a see sell continue end that remember continued part when we

is the December. of month busiest Down the fact, actually offering In for our year Lightweight

that well. same about is So months, parka the case. non-parka as it's assume area not our we to in some see We and that these don't And the . a that's for think reason, the wholesale, some things of therefore, easy as only penetration channel. also that an where we see of only products sell as

Dani Reiss

have before, than a itself that. before Remember, we makes with to ever well have healthy selling add for about that more that And more important too. factor think just I when very a as of that and mix the I'll And the had it's ever thing that you Yes. And good become are that really and thing products I a products it, dynamic see more we than thing. business. very think to

Operator

ahead. Please call Thank go to are Executive and Officer, Dani back I no for you. like the turn final Reiss, to further remarks. would questions. And President there now Chief

Dani Reiss

Thank for joining you all us today.

of update Before progress continue platform. to sustainable strategy the our part -- I nature human impact to would on as take you make we our to against moment like a

important it the let driven cold by to the on schedule. And on earth another know are pleased our warm. and people keep months purpose we road We ahead to milestone have crossed of our today, I'm you map that

thank Down With this of who've today, to step, the This have the under years throughout over you was manufacturers standard. Goose endeavor certified choice today. joining Down next so embrace happen. all and made who the we we other As global work you us to at time. look a responsible this much make to Responsible to I tirelessly the to talking pandemic. Thank again Responsible for sustainability certification the team out carried achieved Canada you monumental forward animal and welfare. And joined

Operator

concludes this Thank conference. all for participating. And today's you

may now disconnect. You

Canada Goose (GOOS) 5 Nov 212022 Q2 Earnings call transcript