-=Canada Goose (GOOS) reported earnings on Thur 8 Feb 2018 (b/o)

Canada Goose beats by CAD 0.10, beats on revs

• Reports Q3 (Dec) earnings of CC$0.58 per share, excluding non-recurring items, CC$0.10 better than the Capital IQ Consensus of CC$0.48; revenues rose 27.1% year/year to CC$265.8 mln vs the CC$240.68 mln Capital IQ Consensus. Wholesale revenue was $134.2 million as compared to $137.0 million in the third quarter of fiscal 2017. In the first half of fiscal 2018, we shipped approximately $18 million of customer orders that were originally planned for the third quarter based on the order book, which was enabled by efficiency in manufacturing and sales planning to allow us to accelerate our shipment timing in response to requests from retail partners approaching their peak selling season. This was partially offset by strong demand in the wholesale channel. Direct-to-consumer revenue was $131.6 million as compared to $72.0 million in the third quarter of fiscal 2017. The increase was primarily driven by incremental revenue from four new company operated retail stores and additional seven new e-commerce sites which opened in fiscal 2018. We experienced continued strong performances of our existing e-commerce sites and retail stores.
• Gross profit increased to $169.0 million from $120.3 million in the third quarter of fiscal 2017. As a percentage of total revenue, gross profit was 63.6% compared to 57.5% in the third quarter of fiscal 2017. 
• "In our peak selling season, we delivered strong performance across geographies, channels and categories this quarter, reflecting the continued demand for the Canada Goose brand around the world. Year to date, we added e-commerce sites in seven new markets, opened five new stores across three continents, including our partner operated store in Tokyo, and we successfully added more than 700 employees."

Canada Goose: Earnings Conference Call Notes

Highlights: 

• Continue to seeing growing demand for lightweight down product, for more temperate climates 
• Introduced 30 new styles for winter lineup 
• Positive traction on leather and lightweight products, introduced for the winter season 
• Youth, Kids, and Baby business doubled this season 
• Focus on expanding internationally:
  • Drive growth by expanding access 
  • "Tremendous" demand in Chinese market