The chart below shows how GOOS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GOOS sees a +3.50% change in stock price 10 days leading up to the earnings, and a +2.35% change 10 days following the report. On the earnings day itself, the stock moves by -4.31%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Per Share Beat: Reported EPS of $1.51 exceeded expectations of $1.08, reflecting strong financial performance.
DTC Revenue Resilience: DTC revenue increased to $518 million from $514 million year-over-year, demonstrating resilience in direct sales despite overall revenue slight decline.
North America DTC Sales Growth: Comparable DTC sales in North America grew 3% year-over-year, driven by strong performance in the U.S. market during the third quarter.
Gross Margin Expansion: Gross margin expanded by 70 basis points to 74.4%, driven by favorable pricing and reduced inventory provisions, indicating improved profitability.
Inventory Reduction Trend: Inventory decreased 15% year-over-year, marking the fifth consecutive quarter of reduction, which supports strong cash generation and operational efficiency.
Negative
Quarterly Revenue Decline: Third quarter revenue was $608 million, slightly below last year’s $610 million, primarily due to a decline in Wholesale revenue.
DTC Sales Decline: DTC comparable sales declined 6%, indicating weaker performance than expected despite a 3% increase in North America.
Wholesale Revenue Decline: Wholesale revenue declined 8% on a reported basis, aligning with the strategy to reduce wholesale order volume, with a year-to-date decline of 17%.
SG&A Percentage Increase: SG&A as a percentage of revenue remains higher year-over-year, with a deleverage of 110 bps primarily driven by higher direct costs associated with expanding the store base.
Adjusted EBIT Margin Outlook: Adjusted EBIT margin is expected to range between flat to down 100 basis points compared to the prior year, a revision from an expected increase of 60 basis points to a decline of 60 basis points.
Canada Goose Holdings Inc. (NYSE:GOOS) Q3 2025 Earnings Call Transcript
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