The company’s revenues increased 59 percent to $44.7 million during the fiscal first quarter, which ended June 30 and is the slowest stretch of the parka-maker’s year.
Losses widened to $19 million from $12 million a year earlier. Gross margins expanded, to 64 percent from 46.8 percent, but selling, general and administrative expenses also rose, increasing to $45.1 million from $25.8 million.
Dani Reiss, president and chief executive officer, said: “Our products and our brand continue to resonate with people around the world, and our direct-to-consumer channel was a standout performer in the quarter. Productivity across our retail store network in this off-peak period was exceptional, reducing the loss impact of our strategic growth investments and giving us a favorable tailwind for the rest of the year.”
Canada Goose’s wholesale business increased by 8 percent to $21.5 million for the quarter, but most of its company’s growth came in its direct to business, which drove sales up 180 percent to $23.2 million.
“The increase was primarily due to the strong performance of all existing and new retail stores, with particularly significant contributions from well-established locations,” the company said in a statement. “E-commerce also had a positive impact on the quarter.”
This year, the company is projecting revenue growth of at least 20 percent with adjusted earnings of growth of at least 25 percent.
Shares of Canada Goose on Thursday fell 3.4 percent to close at $54.00 in New York Stock Exchange trading.