=Canada Goose (GOOS) reported earnings on Thu 9 Nov 2017 (b/o)

Canada Goose beats by CAD$0.12, beats on revs; raises FY18 guidance 

• Reports Q2 (Sep) earnings of CC$0.33 per share, CC$0.12 better than the Capital IQ Consensus of CC$0.21; revenues rose 34.6% year/year to CC$172.3 mln vs the CC$150 mln Capital IQ Consensus. 
  • Wholesale revenue was $152.1 million as compared to $122.4 million in the second quarter of fiscal 2017, driven by growth across all regions. In the quarter, revenue of ~$13 million, which was originally expected to be earned in the third quarter, was pulled forward . Enabled by increased efficiency in manufacturing and sales planning, shipment timing was accelerated in response to requests from retail partners approaching their peak selling season. Direct-to-consumer revenue was $20.3 million as compared to $5.5 million in the second quarter of fiscal 2017, driven by strong growth in our North American e-commerce business and incremental revenue from new retail stores and e-commerce sites which were not operating in the same period last year.
  • Gross profit increased to $87.1 million from $59.3 million in the second quarter of fiscal 2017. As a percentage of total revenue, gross profit was 50.5% compared to 46.4% in the second quarter of fiscal 2017.
• Co issues upside guidance for FY18, sees EPS of at least (+35% to) CADC$0.55 vs. C$0.55 Capital IQ Consensus Estimate; sees FY18 revs of at least (+25% to) CADC$505 mln vs. C$501.56 mln Capital IQ Consensus. Based on stronger than expected growth across our business, with a particular contribution from our direct-to-consumer segment, the Company expects fiscal 2018 results to exceed the long-term and fiscal year outlook which was originally provided with the release of fourth quarter and fiscal year 2017 results on June 2, 2017. For fiscal 2018, the Company currently expects: Annual revenue growth on a percentage basis of at least 25% versus the previous expectation of mid-to-high teens; Adjusted EBITDA margin expansion of at least 50 basis points versus the previous expectation of flat to modestly expanding.