Canada Goose, a high-end functional apparel brand, has released its financial report for the second quarter of fiscal year 2025, ending on September 29, 2024.
Despite the increasingly severe macroeconomic environment we are facing and the impact on consumer sentiment, the second quarter performance still reflects the steady progress we have made in various operational priorities, "said Dani Reiss, Chairman and CEO of Canada Goose. We remain focused on providing excellent customer experience through our direct sales (DTC) channels and enhancing the attractiveness of our diverse product range through targeted marketing and optimized distribution methods. We believe that the company is well prepared for the upcoming holiday season and are pleased to launch Creative Director Haider Ackermann's first capsule collection to the market by the end of November. We firmly believe that our plan will boost the overall performance of the company and lay a solid foundation for sustainable, long-term profitable growth
In the second quarter of fiscal year 2025, Canada Goose's global sales exceeded expectations. Driven by the Greater China market and tourism retail, the brand maintained a steady growth momentum in the Asia Pacific region, with sales increasing by 3.6% year-on-year. The performance of Greater China region is impressive, with sales increasing by 5.7% year-on-year. During the National Day Golden Week, Canada Goose performed exceptionally well, achieving a year-on-year increase in sales, fully demonstrating the brand's strength. In terms of e-commerce business, the brand has recently opened a Tiktok studio, which has achieved remarkable results and formed effective support for e-commerce business.
Canada Goose is steadily advancing its key operational tasks for the fiscal year 2025, focusing on brand and product development, high-end retail execution, and internal operations.
In terms of brand and product development, Canada Goose made a cautious decision in the second quarter to focus marketing expenses on the third and fourth quarters, thereby driving the realization of the brand's long-term strategy. The brand focuses on strength and fully supports the release of the first capsule series designed by creative director Haider Ackermann before the holiday season. In the second quarter, the brand optimized the pace of new product launches and focused more on enhancing customer appeal through clear brand stories, leaving space and focus for the upcoming Haider Ackermann's first capsule collection in the direct sales (DTC) channel. Canada Goose's autumn and winter collection has received widespread praise, with a significant increase in sales in October compared to the second quarter. The brand actively invests in influential partnerships and is expected to launch eyewear products in collaboration with Marchon Eyewear in the spring of 2025. Driven by brand communication activities, the brand has expanded its audience on social media and communities, achieving strong growth in the number of global omnichannel fans, with a year-on-year increase of up to 30%, effectively promoting brand popularity.
In terms of retail execution, the brand is committed to providing top tier stores and online experiences through its direct sales (DTC) network, shifting its focus to improving retail operations and processes, in order to create world-class high-end retail execution. In the second quarter, the brand added two new specialty stores globally, located in Montreal, Canada and Wuhan, China, and converted two limited time stores into specialty stores, including the Shanghai Xingye Taikoo Hui store. Currently, the number of specialty stores worldwide has reached 72. In terms of retail operations, the brand is committed to ensuring sufficient staffing and well-trained staff in its global direct sales (DTC) network, optimizing shelf displays, fully meeting consumer needs, and providing a warm brand experience. The relevant measures have effectively promoted the improvement of conversion rates in the Europe, Middle East, and Africa (EMEA) region, and will soon be extended to North America and the Asia Pacific region (APAC).
In terms of internal operations, the brand focuses on investing in technology and design talent, and building a Paris design studio team. The brand is committed to enhancing operational excellence, with a 13% year-on-year increase in inventory turnover.