GOOS - Earnings call transcript Q3 2022 | Canada Goose Holdings Inc.

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Operator

Good day. Thank you for standing by. Welcome to the Canada Goose's Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. advised conference be being Please Instructions] that is today's recorded. [Operator to I Investor conference would Instructions] hand Relations. now of [Operator Bourke like the Patrick over to Please go ahead.

Patrick Bourke

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

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

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

Dani Reiss

you I'm and to and today discuss be happy us for results Patrick, joining much good so Thank our morning, here to everyone. highlights. share Thank you, today.

third its $X annual growth improvement our built way by is billion the that Our continued, stages sharp XX% Adjusted by performance PPE QX, for exceed a strong first and XX%. last continued growth. year, time track This the later had both up basis We a margin the EMEA. excluding per temporary continued through points quarter, have related and putting expanded In to digital had from line flowed This us COVID to revenue by financial quarter. traffic driven sales in relative and in ever. bottom XX.X%, alongside increased the and in the largest momentum store foundation to has Total on last significant of outbreak led a EBIT adjusted increased execution. and in to strong We revenue revenue DTC year. performance to into in $X.XX growth. and share. APAC XXX new restrictions have QX retail impacted EPS XX% we

We as will already seen improvement shortly. As have weeks. which outlook for view past revised a temporary. two result, we Jonathan the fiscal sequential in of in these case cover new And disruptions XXXX, our APAC, we've the

long-term environment today's presents in confident remain challenges, trajectory. our While we

Our like few give that speak the talk brand to unique and me this. about platform on a confidence I'd to future. our highlights momentum And

asset an operating environment. are in operations Canada today's in Made Our dynamic

We have to constraints margin revenue any supply winter. or relating shipping not this material headwinds had or

pressures. we into we're ability going position and confident forward, in Looking in navigate XXXX our confident fiscal to are our inflationary inventory

a made enhanced with the journey been our new in site the I America on the As mentioned global gains was growth, see solid earlier, North continued we've pleased earlier this standout, building last our year. increased very launched conversion customer that strong having and business we fall. realized. has digital to region that We've e-Commerce

our in continue globally will phased rollout We FYXXXX.

the results the that business. team are and of against by year-round I'm seeing this encouraged global proud enduring has we an shown brand We objective, across expanding lifestyle roles. are the and delivering dedication our we building are

by non-parka quarter, revenue This XX%. grew

are seeing with touch this women, Canada lifestyle, first offering. plan success particularly expression to expand our and being collection, we across including The our Goose collection I'd later this of to We full expanded One highlight offering year. and on tremendous pastel the sweat, like our resonated accessories footwear. outerwear,

quarter milestone Another collection first-ever the was efficient driven from The from demand consumers. launch this a has past strong response collection. footwear our of excitement and

forward Looking the our our There the to NBA both so All-Star and to annual one much we near guest designer up Salehe forward with I collection, the year, forward within and within presale. to and footwear, brand multiyear is next launch our And Cleveland new Bembury our today we long-term, several received in designers will potential collection collection growing spring styles, relevance. and year-round Innovative heat. with as interest for most of look tomorrow, response the we hallmark collaboration concepts incredible collection brand, innovative second the of seeing I addition as of our look massive days. brand collection. is are of renowned in teamed The our capsule driver collaborations the world's Japanese brand fashion and with with evolved weekend. December, outstanding you. sellout This annual BAPE. update our In our was of to a we Bembury partnership. part launched continuing has

Finally, our continue make to the we responsibility. future

our This the you front. responsible to go we this updating we that nylon, Last XXX% and undyed made The the collection I to environmentally continued the over it collection. our everything and on only people chemical our Jonathan details month, assortment. to responsibly results forward it's HUMANATURE and keep and our how the the look cold I'll our The progress turn scaling Our launched down and of materials purpose is are the with that, reducing to on into on sourced recycled HUMANATURE collection first do with fabric, planet by And product uses innovative outlook. over guides beginning, purpose, we and demonstrates warm. financial collection. significantly of impact it is platform underscored quickly

Jonathan Sinclair

strong with well supply peak earnings levels. and chain, constraints we DTC-led our above productive. highly third and Thank profitability everyone. morning, a without good and for performance the delivered We you pre-pandemic was Dani, impacts. joining exceptional, fulfilled Brand With or revenue one-of-a-kind material quarter, was a us. you, in demand distribution momentum Thank

Following growth we and new of QX and EMEA into current seen Asia-Pacific This by has end in and revenue outbreaks, temporary and these in United the We partially quarter. that traffic COVID-XX believe are disruptions the outperformance variant the lower-than-expected in at have been contained. offset States.

making favorable remains great environment operating last and agenda. more on Our progress year, we're was strategic our it than

in temporary Looking to XX.X% total by the $XXX excluding revenue sales last at the PPE of year. quarter increased impact detail, million,

improved QX quarter, DTC led year, of way, revenue. stores, the a is $XXX XXXX week growth provided increasing for fiscal our contributors. Retail In million As top last revenue quarter. our XX-week the sharply $XX.X XX% and Higher growth to year’s alongside in XX% the significant existing for by of expansion the digital gains. brand This outsized channel e-Commerce point retail from on proof in were all most additional great and million. is productivity a important

partners not away expectation XX% wholesale about million. of into by earlier. Throughout with annually mid-single-digit to planned, has driven changed. a back these This spoken revenue normalization $XXX As we’ve year, QX. ships, the shipments was decreased timing our Stripping the requesting growth of shift

new our excited lightweight last We markets are non-parka this grow. from with and XXXX. revenue higher and line year-round than relevance sell-out DTC have shifts revenue fiscal Vests alongside industry contributions Mainland restrictions, we’re increased finishing and with in and encouraging Total performance Parkas while certain products been also In headwear to the China, build lifestyle variants year, From strongly. by in XX%. to grew apparel, have the with by down, footwear. upon others winter perspective, Geographically, they slowed have continues broader significantly and jackets full a XX%. reflect increased standout accelerated. These trends.

low strong achieved pace. EMEA a which Milan. we We’ve have absence sequential emerged also markets XXs Pacific, changes in a Underlying long-term its the international New major shopping of the restrictions into weeks conviction and strong, in into traffic in Year. XX%. highlighted region slowdown Like in last remained has over very Paris in disruptions at retail the but like November, by current a observed growth rate we The Following heading our for performance a seen store few of traffic also demand this been upside interrupted increased global Lunar Revenue carried The online. improvement through quarter. in December, in like are destinations grew None Asia a Germany. and headwind and by meaningful it the recovery.

United during sales last improved as retail States in the In hand, together Ontario we in and performance. America has incremental excluding was the double year. revenue an face provided On PPE last Being temporary increased E-commerce the growth Quebec XX%. year. Revenue period fully digits, much increased North operational uplift by in with this accelerated. low XX%, closures Canada, other

growth regions when pre-pandemic Our demand. digital all high traffic other in was near entirely was the highlights domestic driven established This levels, or retail XXs. were almost of that stores the too, by at upside and this Remember, performance normalizes. retail

on gross wholesale in Moving at margin. to XX.X%. XX.X%, DTC was while came

are subsidies, ago. year slightly above last versus up both temporary well wage years Excluding and two

a a up algorithm SG&A new product environment, record compression. We cost track million, year. more and from With long have of inflationary Total eclosion increases funding was is lifestyle valuable. even our more and now successful last our XX% without margin $XXX

increased year, pandemic revenue disruptions a to to billion margin expand discussed Adjusted and XX.X% peak this approximately EBIT revised to expanded throughout $X.XX. year, this material $XXX X% no at this in our and slow This in shift total reflects revenue experiencing DTC wholesale fiscal million basis EBIT the year. our profitability ranges not key with meaningful In we’re from perspective. this the extra revenue week economic in representing and EPS with approximately revenue the assumes Pacific $XX.X contrast, XX% $XXX $X.XX XX% what one the to points the today. end outlook a is with and EPS of At we XX% closures X% margin million is for now in left $X.XX. period Backing for an results season. to a late DTC quarter. our flat demand of our revenue $XXX growth. last lower levels year-to-date period, expect Relative XX.X% billion. is the to EBIT XXXX, of EMEA million the annual this positive growth. and quarter, outlook represents quarter. metrics. shifting adjusted increase quarter the level, revenue year, week Adjusted SG&A to we’ve the XXX million. growth week $XXX that to macro one of in growth. $X.XXX a or What implies following Asia plan from for later. out revenue Total high-volume Finishing starts We outlook of Total adjusted fourth our As down in to means assumes it’s selling e-commerce This mix with million In XXX% which a high wholesale revenue mix to to XX-week due QX year-over-year fiscal to timing. trading XX.X% of negative slightly current growth following comparative in represented to assumes of of period $X.XX This slightly relative watermark this

We The temporary faced reductions a expect year and be larger line last our XXXX. fiscal a playing operational our change fleet, much with we e-commerce fully have in not to growth. role largely in do retail optimism with for normalize DTC

We end year will share at in views our detail.

see we full even margin can’t we expansion today, reason have no why and it globally. recovery retail growth is strong As a without there

Our DTC journey continues.

is robust. momentum brand Our

is expanding. relevance lifestyle Our

I in chain on operator begin call. plans our over and environment. updating that, one-of-the-kind pass our a next us Our and flexibility And power disrupted forward to Q&A. you retail will I our supply gives stability on the with look pricing to to

Operator

Our [Operator Cowen. Thank comes Oliver from Instructions] question first Chen you. from

open. is line Your

Oliver Chen

Difficulty] a sales Would of spend it’s then thoughts the how you. traffic [Technical spend your in longer-term? Thank finally, as have marketing are also on regionally love view some you and on And that the what Hi. there? encouraging. you’re and evaluating your QX, And of store assumptions opportunity? marketing percentage

seen sellout in You’ve the higher wholesale channel.

means planning? what Just Thank would inventory the it there and your you. drivers forward for of some love

Jonathan Sinclair

EMEA. in we’re in and of reduction XX% we’ve much in maintained, we’re what And momentum Asia and in continued Difficulty] is what seeing around [Technical North very America there. is XX% expecting got

to I deliberate think marketing. always when are investment marketing, it about we comes very our in

sort percentage in revenue, change as it a at that’s with no end higher see what a keep we continued level people time. typically over We have the a of invest. of that constant We and of

base. demand performance of growth So very we’ve retail it strong seen client and wholesale, wholesale came circumstances. a set end. when the at value obviously, the The is had the of to consumer channel positive healthy. strong enjoyed We’ve We’ve unit in very demand growth very

Dani Reiss

to more add is of it QX and year just that and be in I’ll important very our revenue our very us. to our typical wholesale a Yes. year, came more business to continues was strong. This sell-through

this continue So we’re encouraged to for and by enrollment sell-through. encouraged to us this very revenue strong future. and very the grow We in see were very drive category to

Operator

Thank you.

Our next from Baird. question Komp comes from Jonathan

open. Your line is

Jonathan Komp

broadly, you. Is Thank then just going want or more I else with margin going that If maybe to your the operating could of could think I XXXX, clarify fiscal deleverage anything Hi. expansion margin XX% year. to as on maybe just Yes. drivers margin you anything ask on? of decrease to back above clarify maybe margin. this if that for the sales And pathway changed And some outlook main you there? forward? beyond outlook the all first

Jonathan Sinclair

Sure. Thanks.

here, of recent the our typically weighted year. that’s when the then to profit margin most a was unfortunate, fourth we delivery – and we often it’s major we expansion. margin the disruptions. the year and of investments I’ve we was very see I impact, then season, think And first make be supposed get And as front before, therefore, quarter growth said into our the SG&A this Timing the in peak magnified as expansion. driver do, as

to can clear, With the side. And sales store current this much that very more sales thing for the mid result, disruptions, there we to story is do a that’s year And relative teens To revenues have we that traffic the a mid-teens traffic the and, been margin. lost absolutely limited be in cost throughout – the retail on leverage. a the year. is range about the therefore, high we’ve impaired depressed as talking we’re

pricing reason fiscal can’t XXXX, Now current of expand as got to inflation. see why we year, power environment. we no We’ve this look terms significantly in manage cost in even margins the more we than

already U.S. Our DTC us the has of productivity upside critically a shown is fulsome recovery. improving, more and the retail

Dani Reiss

as going back. beyond to traffic and story we levels. retail – said, we Jonathan traffic what we traffic term, normalize Jonathan’s it’s come longer a add I’ll and eventually that point, completely will recover completely to just globally, ourselves restrictions and intend pre-pandemic see To

Operator

Thank you.

question comes from Ike Fargo. Boruchow Wells next from Our

is Your open. line

Ike Boruchow

I on there. is on is which bit for there better $XX apologize think question dispersion, it clearly, Jonathan, I pretty about you’re everyone. EMEA. more I cutting some morning, little quarter it’s on us is were wanted just sounds around of expecting a little Good sounds the smaller maybe region? you pressure Could productivity so give talking Oliver’s guidance XQ, you’re understand a or a regional regional healthy, around little and America which levels performance. back a in reduction DTC just lot in APAC detail in by North million, to you maybe just what but like bit a XQ

tell Just it us kind that of parsing might out, – globally. understand

Jonathan Sinclair

pre-pandemic To so. happy distance meaningful spot, very of that’s international absolutely. and traffic. within levels start bright now do striking with actually close to underscore is without U.S. Very Yes, the I

last a right Canada much and direction. they’re Our bit improved but in highly from moving behind, definitely they’re the year, are stores productive in

steps it’s a Pacific recovery been for Asia the with that standout EMEA outbreaks furthest with dealing a last was but back retail this and taken year. year, is general, restrictions In new last are did we’ve retail convinced that than in it’s temporary. much note these traffic globally, important seen that stronger currently. year we this fall/winter behind are to we we’ve normalization overall, But disruptions few and

Operator

you. Thank

next from Suisse. Michael Our Credit comes from question Binetti

Your line is open.

Michael Binetti

XQ to about on try we profitability. next XQ, here. you on how for far just the to and as happening – is as year you total see think to you able much this just the compares be be as what much reclaim should to how we you about in or about the should And what the then think wanted revenue as framework think now? how XXXX. Maybe about because transitory transitory of year questions think easy the think that for in pressures right about some for Thanks are ask help early I to see

margin to those XX% EBIT rate EBIT the margin, point? the of of think of headwind on gross we the should just to as XXXX non-parka Is assume next go year quarter. categories the for it you appropriate the evolving the margins even run not gross then of than that, that we I I the non-parka the gross to margin some at impact just follow Maybe how certainly. – earlier, you’ve other and spoken term as categories higher an were the On this Jonathan’s bit about into keeps forward. of this XX% boots a the think mix to for plus that question think the And push would it is margin know long I over is much as business.

Jonathan Sinclair

Mike. think thanks, I lot mean in – a that. I there’s So quite

in take So which let’s it in sequence the you asked.

for through of any for technology business The organic framework so accounts assuming growth us had base development of of stores. the this And that, softer that the normalization traffic and clearly existing and retail omni. doubt in There for year quite continued traffic, should gives the from our that that impaired gives still so – next a network on in as as apart And see stores XXXX. the we’ve and event, therefore, and is first an terms growth is in us our well can no of network both that continued opportunity we year. online wholesale the its the generate

that year we we a growth. platform – next for springboard think should as feel the would we and act So about for very that good

inevitably particularly And those as margins are somewhat margins part in more so we though, develop our level. our the right margin algorithm, are higher to category. balance, turning is fundamental create gross secondly The initially we headwinds that of margins our parka we business Now low. a and tailwinds channel therefore, gross keep that you’re at margin, non-parka that – our in

we see margin believe over it in able what believe time. that mid keep we’re high that for to what that. we’ve XXs demonstrating to to not And therefore, to So expect and we wholesale, changed. is job on mid-XXs for we’re balance, that which gross is said do the our has Management’s DTC is historically, channel, view that should we

about more shouldn’t environment. why significantly me be it there’s comes to the margins to for year, view our I and that think this give early retail affected I’ve even no this when this EBIT forward, got the in It’s XX% earnings specific before, distractions EBIT year, going temporary has a fact too heard traffic. margins we here. And that above we whilst is it’s that expect We’ve XX% said not you’ve we move over changed. underlying time, year next very strong expanding to towards did to by just model reason numbers and talk than

Dani Reiss

add year are Yes. And said to to optimistic for we high what very and at level, very a Jonathan beyond. next

demonstrated that in continue grown personally, to – as We’ve see be and business returns, and over growth the it we meaningful will the future. consistently growing We years, a operate why into have environment. that past – nice a impaired no such that demonstrated few greater And when reason and even time profitable accelerator to growth. see when we an and – continue traffic not a we can an we

Operator

you. Thank

Evercore. from comes next Omar question from Our Saad

is open. Your line

Omar Saad

little detail outlook. Good effects And and effects Any other the kind and last point two last that seeing issue on even had love on Asia pickup have further morning. watchdog on Would business weeks, the the think Do soft COVID-related? you I market, correlation picked of think my then in what’s lingering seeing there? that wanted of and ask on guys there. your there the you Do Thanks. deceleration traffic is taking for maybe view what’s China some in the little Winter there? the two Thanks in your PR restrictions? mentioned consumer What COVID it’s a weeks, with detail market? – open will in things China a you to from that your of further Are bit finer you up. up post going a Are more just that Olympics? put on you’re easing I and you question. affecting happening a

Dani Reiss

your question. Sure. Thank for you

over moment to We about primary very The are China story And confident in impaired point quarter, and XX% moment. China. at in and story that’s traffic in of COVID-related online for sign our business restrictions-related, is last the I’ll out products which in the good note really is consumer business is that China China. our our in which demand stores. the biggest in a at was up the very to important China

bullish are about prospects China. We optimistic and our in very future

meaningfully of years changes and continue in to lot pre-pandemic have traffic climate We come. and the to global And intend a runway we soon for left hopefully, returns there levels. to to China grow

Jonathan Sinclair

we’re I seeing in As said traffic build week that encouraging. my moment. It’s remarks, prepared the at very been over week

right there on number COVID, at Olympics in the obviously, Beijing. also are of are factors it’s a moment, underway think going whether moment, in the at I but China around the

have it. trend seeing, remainder confident assumed that’s normalized about feel year of embedded we we’ve a we’re and in been here. fairly the more based And for saying what Asia the in what on We

less therefore, swing about becomes way February is factor more the the traffic evolves, to significant. think than remainder year bigger becomes in the And how that’s January I thing typically, business in of than than volatile our is embedded which March. other is February, think bigger the the

Operator

you. Thank

comes question from from next Yih Barclays. Our Adrienne

Your line open. is

Adrienne Yih

like relative margin, are specifically Jonathan, about a puts the to the is And net the of Great. is into So here. from couple to I to think dig of raising about regions, talked look you or other because stores. percent coming want China does guess, positive. I’m very the you how EBIT East? margins, have we coming look current cost through China – to takes. you I much. what e-commerce then, margins? specifically, And cost rate offset very you what going versus the don’t is the what inflation? What segment going regions? the say you And other Thank margin How product merchandise the what Obviously, Far the much curious, to container much. you just on Thank be A inflation? questions shipping is and prices topic. should the inflation do AIR cost I’m

Jonathan Sinclair

you. Thank great. That’s

are So around the at pricing typically reflects And the for that’s certainly well-established we global pattern and China fact gross level. robust, margins that that the world, metrics the a follow us.

more generally of we think, I an stores And EBIT of therefore, the strong productivity. online times therefore, than fall first margin a good of are The alongside the all, itself costs and enjoy and stores levels it normal from contribution margin speaking, regions in profitable e-commerce. operating China has in SG&A. because and are a And good very the bit our with partnership about of it other our EBIT the standpoint, little from embedded is in the which the ImagineX, same. depressed in

raw pricing years. been inflation what we're is online that's one. it we're of underlying them strong in We cost margins, been – a a types supplementary power there to in out. those moving in there product much if the pretty in getting facing And as our since seeing. input because variances. single-digits or We are for buying materials been we're But those inflation. margins, And robust we freight brand. means it's our When We've we’re and when shipping Low typically do bringing the you're to inflation. the very as DTC costs very because grows, And we do impact that get that's surgical. the cost either prices, it's understanding not huge cost volumes, day cost we understand input therefore, do on unique world sophisticated there weren't we although, a of do were product, that have network which comes there's region you move elasticity some high. means our it so not that and and And able And very price have that. have is product in

raise single-digits. generally been our prices, we've context, to speaking, that in mid So in able

brand. You goes been make year pricing tune of to different. in that has is This it up the been the along. year we've as obstacle sort And no able an sure

Operator

Thank you.

Our next TD question comes Securities. from from Annett Meaghen

open. line is Your

Meaghen Annett

Good morning. you. Thank

brand Looking you regions? of about shifted each positioning equity can Are all? geographic And talk seeing increased the key has seeing at customers, in that the could region you on you're particular make from what your the any by any in competitive be relative worth throughout if pandemic that you new at in brand existing helpful? region, you. maybe be might comments that would And to intensity noting? Thank

Dani Reiss

your Yes. question. Thanks for

as heat collaboration relative that encouraged three all both doing. for from I the camp lot brand Front already strong. of Coming share up soon say, we brand this all equity and that our awareness very markets and when brand among think collaborations of mine our the growing, equity, our by is is by we're we're geographic in young brand – our example, with the is that set. the of of desirability seeing especially markets out very across sold early. that a to perspective awareness, some we're being collaborated of capture is all markets, to and driven Salehe so of I'd consumers, our community some what And yes, see base we objectively with NBA, our our in Bembury competitive we a brand our of

Operator

Thank you.

from CIBC. from question Our Petrie next Mark comes

open. is line Your

Mark Petrie

and a growth XXXX sort store And morning. in of sales expectation your are good XXXX then any I how to XXXX to ask fiscal comments stores? just with specifically the in there's store then curious, what's I longer a I comments fiscal some guess, there? But productivity. reasonable older know just to versus can wanted potential? And cohorts network China, with performing Hey, regards just term any if lot share noise. of fiscal of you regards about and store

Jonathan Sinclair

Yes. Thanks.

of we've really to looking honest, very market, able a the we've Southwest one property, been opened our bring interesting are China. stores, store pleased We're of or with up in not been in taken of that We've XX-odd stores we've stores therefore, we're good there been that years. zone plenty we've that's talking the with the To in in about because three to talking huge some with of whether and it be when and we've new the a to still comes at last network the U.S. early store quite Our buyer in Germany seller's where digits. we're productivity, to of in how stores off. in into the very stores sector the opened or they've development very in a cohorts couple Plaza able it's be whether been online well pick people we're pleased

see mark have years. the opportunity stores of with couple of that Difficulty] We've said we in a the stores. But reason us a opening I high network. take to that we And [Technical stand will single-digits of you XX% around for approaching No So why always going up for be triple-digits. also shouldn't in doing we're brand the continue. see are and never been think to by a can towards growth We that that that that. plenty hundreds number

Operator

you. Thank

comes question Goldman Roach Sachs. Brooke from from next Our

Your line is open.

Brooke Roach

broadly have to you. and increase up marketplace. follow about moat that much my about competitive China you in you improve to Good the region the Meaghen's more a customer your on environment positioning. so around the initiatives brand questions. and competitive love the to morning your hear perhaps connection you Thank actions brand little and see and I taking in Chinese marketing in and for bit I'd how wanted prior equity question thank

Dani Reiss

question. for thank Yes, you your

for of and lots asking domestic. brand our is very is China we being And there's and for we large research all about in for – is there in really brands demand our brands, quite China, our in strong, there high. room do market, equity the amongst there, brands of the Our what international that is high, both demand and brand see you're lots those we It's a and specifically, as that China. see are of products market

important that it's that, market very In I China. China also addition brand as for that to to we think specifically international an

– Chinese to marketing on our with market the the for our do in our we with along team, that the our keep high. marketing, designers consumers continue collaborations So team on we China. ground in including to ground a local and have And from marketing there, China in very team fans brand in our way, is that we entire demand

Operator

Thank you.

comes Our McNamara Brian Berenberg Capital. from next question from

open. is line Your

Brian McNamara

stock wanted taking on is thank your these morning, in the I thoughts driving given authorization, specifically with today view do share question. shares shares on this challenges the for time with, significant Good X results, are think you surprises? a weak And current that you. do aggressively in up to good is buying you volatility price I temporary? Thank on your your million be my your to very get back your quarters. believe What you big recent earnings think,

Dani Reiss

question. for your you Thank

that build will that believe and firmly measured decades is not job quarters, come, I And business think firmly for that's generations. doing last our to generations that that's enduring measured years in to long-term and I a strong, that. in and I believe and in we're

past will the all the it details. we've proud what Jonathan to right accomplish. numbers some at what accomplished technical be I'm many years, all right think And over I to of time, look I been I'll yes, in over to places. we've when hand talk to able And that year-after-year the over so And very

Jonathan Sinclair

Yes, it is left you rightly to in NCIB, the when note that there the capacity comes NCIB.

with there share for is said, cash – use NCIB. consider is believe, we we to know, in with flow ultimately, price times us funds believe free at shareholders. that of investment when because working an also it's return to we the market, you the our an As generate our attractive option the that privilege to the in best business also That

Operator

Thank you.

next Lyon BTIG. question from comes from Our Camilo

Your line open. is

Camilo Lyon

Thanks. morning. Good

in performance. on the China follow-up store's a Just

China remember was correctly, year-over-year. So doubled XX% up stores I your but hearing if

base pretty So a like and of commentary or the And out stores current of meaningfully. stores can were that it down in performance is Jonathan, comp starting stores? existing the looks to the new pickup those Thank or reflective you parse in new stores you're existing entire store your stores. versus productivity you. is the quarter see performance

Jonathan Sinclair

there we Chinese with this base the China. comp in that's seeing. inevitably, that But seeing the going what to we're of conclude in growth So that are our good store said, expansion, are consumer. at also level space – you're in certainly declines And

the that how and stores encouraging think the you the think trends. we're hitting XX% driven The I developing. you describing. We've because encouraging what’s are is much look do China have of new very very factors been I at seeing been moment at disruptions stores we And terms when are that's up all below are just going very stores the also and pretty don't that So in their online the that. it the by seeing can been have that extraneous obviously seeing pleased we've numbers. Mainland frankly, And online. But we've around on that we’re with environmental been opening –

Operator

you. Thank

comes next Jay Sole from question UBS. from Our

open. is line Your

Jay Sole

question. like just My and activity question. like is about thank Can is? for on just platforms media activity question company's like stop social right you my Weibo the Great, social that there, WeChat. in why And It media December China. maybe talk the in seems taking you decreased that's

Dani Reiss

of We operations is out on in your China for in we directly that in our marketing And Jay. Thanks speak China, Shanghai. office consumer question, base. how our our to the China, who's run ground

think over is China. years past over our and brand strong the presence in that our the drive has social our revenue that few helped year, we've media awareness, I really been

very base As all we’re able we're on JD.com, cultivate platforms, strong Chinese been on to those marketplace. on as know, community of a across Weibo our you we’re on WeChat, in we’re well. And camp Tmall, we've

Operator

Bank our of from next from And you. question America. comes Thank Ohmes Robby

is Your open. line

Robby Ohmes

remind And I more Hey, good remind can for very percent driven. XXXX because if to you a morning I ask to tourist or go was on and fiscal or know, Dani taking don't little was Jonathan, us question. think calendar back you can the us what U.S. thanks you it percent right. XXXX, wanted my high, what I

And – since fiscal sort us give has of would your has been pretty getting and two math sort growth like customer the more two the look I like versus Any can that impressive I'm on does the years I if – it imply U.S. me tell is kind it look numbers core Or lot, customers U.S. grown of U.S. you driving it it and in it's the or versus in that? wrong, XXXX but stores XXXX? ago? so changed? profile think customer does a think of the growth – years But ago.

Dani Reiss

Yes, and absence local there's no tourist question robust traffic, strong, in population. that to been very that's United certainly by has over due of international our States the business driven very an

equity, EMEA all America – pleased international and that our awareness of the tourism, I our growth towards the future of well. with return to world, both parts the can And be used brand think to North obviously, looking So and very and United as popularity our to the we're in States. that of the

that well store for for think extremely all I productivity only growth and across regions. our bodes

Jonathan Sinclair

that in business about I that think alongside We're you're times. and what I'd the case was that a XX/XX we've other the is said add certainly domestic always normal in U.S. between times, to And talking baseline tourism markets. that and normal demand. was

that's you're get doing to I there as at said, breakdown obviously pre-pandemic not now And benchmark. even product we U.S., look and great SoHo Hence, Plaza, opening non-heavy that's been if about the the is weather us too. that’s we have other breakdown. pretty thinking just much enabling U.S., the the the say a think performance important the with – the numbers parts. it I in offer Southwest our cold locations, as offer, developing across also complementary in was business you develop We're are in lifestyle the to that really same

we're performance not and just So price. seeing but great great momentum make

Operator

for that And turn you. to now remarks. the back I'd our Reiss today's Thank call over conference. question-and-answer closing does for any Dani session conclude like to

Dani Reiss

you. Thank

with ability temporary is comment, not to noted Jonathan final has leave that disruptions say to foundation earlier, absolutely we Before goodbye is strong our proven. and and XXXX for And for navigate today, one our optimism as our is you like fiscal I'd changed.

business in you thank confident traffic you, us today. our look all full our recovery again even once for I joining speaking to growth globally. are and everyone, a retail We here quarter, forward again next and potential to without

Operator

day. for a This and concludes today's wonderful conference you. call. your Everyone, you have you Thank Thank disconnect. now may participation

Canada Goose (GOOS) 10 Feb 222022 Q3 Earnings call transcript