// Canada Goose revenue rises by 50.2%
// Revenue up from £156.1m to £234.5m
// The retailer will open a 115,000sq ft factory to produce a full range of Canada Goose’s collection
Canada Goose’s total revenue has climbed by 50.2 per cent for its third quarter ending December 31, which it attributed to the increased sales of its popular parkas.
The Canadian luxury outerwear retailer – which trades in the UK via concessions and online and opened its first London store in 2017 – has beaten analyst predictions with total revenue rising from CAN $265.9 million (£156.1 million) to CAN $399.3 million (£234.5 million).
Canada Goose reported that its net income surged to CAN $103.4 million (£60.7 million), up from CAN $63 million (£36 million), driven by higher operating income and a lower effective tax rate.
Meanwhile adjusted EBITDA came in at CAN $151.1 million (£88.7 million), compared to CAN $94.7 million (£55.5 million) in 2018.
In direct-to-consumer channels, which includes outlets and online channels, revenue increased to CAN $235.3 million (£138.1 million) from CAN $131.7 million (£77.3 million).
“The increase was driven by incremental revenue from five new retail stores and one new ecommerce site (on T-Mall), as well as the strong performance of existing retail stores and ecommerce sites,” Canada Goose said in a statement.
The retailer’s wholesale channel saw a rise in revenue to CAN $164 million (£96 million) from CAN $134.2 million (£78.7 million) in the same period last year, and this was attributed to the company’s higher order values from existing partners and earlier shipment timing.
Canada Goose has also credited the revenue growth to having introduced new designs in “seasonally relevant” colours earlier in the season.
Meanwhile, its gross margin in the wholesale channel rose from 47.5 per cent to 50.4 per cent, due to production efficiencies in manufacturing.
In addition, the company has unveiled plans to follow up on the establishment of a new factory in Montréal, Quebec.
The 115,000sq ft factory will produce a full range of Canada Goose’s collection, and is expected to recruit over 100 staff by the end of next month.