Canada Goose Holdings Inc. (NYSE:GOOS) Q3 2023 Earnings Call Transcript

Carrie Baker: For sure. Let me talk about the expanded offering. So we did see it across the category — or sorry, across regions. In North America specifically, sales grew 51%, compared to last year, so just now sitting at about 5% of the total sales in the quarter. Heavyweight — non-heavyweight down grew 20%, so that’s up to 42% of revenue year-to-date, up from 36% per year prior. And we’re seeing that in EMEA as well. Obviously, it’s a little bit skewed in terms of APAC region just for the reasons we’ve all been talking about, but we’re very happy to see that new categories are growing faster-than-expected, faster than traditional core parka. Then again, that idea that people are buying into this brand as a lifestyle brand, not just as a parka brand or a cold weather brand. That’s what we’ve been working hard on, and it’s working. It’s resonating.

Jonathan Sinclair: I think when it comes to Japan, what I’d say is that as a reminder, the strategy there obviously is a switch from wholesale into retail. As you know, we’ve opened a couple of stores there, one in Osaka, in Shinsaibashi and one in Ginza in Tokyo. And whilst we’re very happy with the locations, the initial take-up of business was a bit slower than we might have expected. And hence, we’ve seen that business be a bit softer and we’ve revised the ranges accordingly.

Operator: Thank you. Please standby for our next question. Our next question comes from the line of Jay Sole with UBS. Your line is open.

Jay Sole: Great. Thank you so much. I just wondered if you could elaborate a little bit more. I think you touched on this in other parts of the call, but if you elaborate a little bit more on the footwear business and sort of how that played out this season, what you’re expecting for next season to beyond, that would be helpful. Thank you.

Dani Reiss: Thanks, Jay. Absolutely. Footwear has been doing that quite well. I mean, obviously it does well in nascent category for us. It’s grown almost 175% overall and since — on this quarter. And we have big plans for it, as you know. We’re very pleased with the way our consumers have taken to our new products. Some of our first two products launched were very strong. And the follow-up products to that were even stronger than those. And we continue to build momentum and strength behind that category. And super excited about future growth.

Carrie Baker: And just one thing to add on that is the one thing I’m particularly been watching is just the uptake with women. And so our — we have a really standard size with our pull-down topper boots. Women have been, taking those up like they’re very excited about those categories and we’re selling out often and having to replenish quite quickly. So that’s great in terms of both category growth, but also in terms of how we’re reaching women, which is obviously a key focus for us.

Operator: Thank you. Please standby for our next question. Our final question comes from the line of Omar Saad with Evercore. Your like is open, with Evercore, I’m sorry. Your line is open.

Omar Saad: Thanks for squeezing me in. Most of my questions have been asked. I just have a couple of cleanup questions. I want to confirm, it sounds like you don’t think weather, the warm weather, was an impact in North America slowdown, number one. Maybe dive in a little bit. Do you think in Japan, do you think there’s just a brand awareness and recognition issue? Do you have that kind of presence with the consumer mind where it needs to be for the store footprint? And then lastly, in China, what gives you confidence that the strong recent trends are not just the Lunar New Year? Thanks.