Exhibit
No.
|
Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
99.3 | ||||||||
99.4 | ||||||||
99.5 |
By: | /s/ Jonathan Sinclair | ||||||||||||||||
Name: | Jonathan Sinclair | ||||||||||||||||
Title: | Executive Vice President and Chief Financial Officer | ||||||||||||||||
Date: August 3, 2023 |
First quarter ended | |||||||||||
Notes | July 2, 2023 |
July 3, 2022 |
|||||||||
Reclassified | |||||||||||
$ | $ | ||||||||||
Revenue | 3 | 84.8 | 69.9 | ||||||||
Cost of sales | 6 | 29.6 | 27.2 | ||||||||
Gross profit | 55.2 | 42.7 | |||||||||
Selling, general & administrative expenses | 154.9 | 124.9 | |||||||||
Operating loss | (99.7) | (82.2) | |||||||||
Net interest, finance and other costs | 10 | 14.5 | 5.9 | ||||||||
Loss before income taxes | (114.2) | (88.1) | |||||||||
Income tax recovery | (29.2) | (24.5) | |||||||||
Net loss | (85.0) | (63.6) | |||||||||
Attributable to: | |||||||||||
Shareholders of the Company | (81.1) | (62.4) | |||||||||
Non-controlling interest | (3.9) | (1.2) | |||||||||
Net loss | (85.0) | (63.6) | |||||||||
Loss per share attributable to shareholders of the Company | |||||||||||
Basic and diluted | 4 | $ | (0.78) | $ | (0.59) | ||||||
Canada Goose Holdings Inc. | Page 1 of 30 |
First quarter ended | |||||||||||
Notes | July 2, 2023 |
July 3, 2022 |
|||||||||
$ | $ | ||||||||||
Net loss | (85.0) | (63.6) | |||||||||
Other comprehensive income (loss) | |||||||||||
Items that may be reclassified to earnings, net of tax: | |||||||||||
Cumulative translation adjustment loss | (2.4) | (8.1) | |||||||||
Net gain on derivatives designated as cash flow hedges | 15 | 9.8 | 1.3 | ||||||||
Reclassification of net (gain) loss on cash flow hedges to income | 15 | (0.5) | 1.6 | ||||||||
Other comprehensive income (loss) | 6.9 | (5.2) | |||||||||
Comprehensive loss | (78.1) | (68.8) | |||||||||
Attributable to: | |||||||||||
Shareholders of the Company | (73.8) | (67.5) | |||||||||
Non-controlling interest | (4.3) | (1.3) | |||||||||
Comprehensive loss | (78.1) | (68.8) |
Canada Goose Holdings Inc. | Page 2 of 30 |
Notes | July 2, 2023 |
July 3, 2022 |
April 2, 2023 |
|||||||||||
Assets | $ | $ | $ | |||||||||||
Current assets | ||||||||||||||
Cash | 48.0 | 81.8 | 286.5 | |||||||||||
Trade receivables | 5 | 50.9 | 48.2 | 50.9 | ||||||||||
Inventories | 6 | 522.1 | 504.7 | 472.6 | ||||||||||
Income taxes receivable | 6.6 | 4.8 | 0.9 | |||||||||||
Other current assets | 14 | 76.9 | 52.4 | 52.3 | ||||||||||
Total current assets | 704.5 | 691.9 | 863.2 | |||||||||||
Deferred income taxes | 92.5 | 73.9 | 67.5 | |||||||||||
Property, plant and equipment | 172.0 | 110.5 | 156.0 | |||||||||||
Intangible assets | 133.1 | 134.7 | 135.1 | |||||||||||
Right-of-use assets | 7 | 281.3 | 253.2 | 291.8 | ||||||||||
Goodwill | 62.8 | 64.7 | 63.9 | |||||||||||
Other long-term assets | 14 | 12.3 | 17.8 | 12.5 | ||||||||||
Total assets | 1,458.5 | 1,346.7 | 1,590.0 | |||||||||||
Liabilities | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable and accrued liabilities | 8, 14 | 178.6 | 165.6 | 195.6 | ||||||||||
Provisions | 9 | 16.3 | 16.2 | 21.6 | ||||||||||
Income taxes payable | 9.6 | 13.2 | 31.5 | |||||||||||
Short-term borrowings | 10 | 48.4 | 30.8 | 27.6 | ||||||||||
Current portion of lease liabilities | 7 | 75.3 | 59.9 | 76.1 | ||||||||||
Total current liabilities | 328.2 | 285.7 | 352.4 | |||||||||||
Provisions | 9 | 34.2 | 30.2 | 36.5 | ||||||||||
Deferred income taxes | 12.3 | 18.3 | 16.4 | |||||||||||
Term loan | 10 | 383.0 | 377.1 | 391.6 | ||||||||||
Lease liabilities | 7 | 252.6 | 230.6 | 258.7 | ||||||||||
Other long-term liabilities | 14 | 62.6 | 52.9 | 56.9 | ||||||||||
Total liabilities | 1,072.9 | 994.8 | 1,112.5 | |||||||||||
Equity | 11 | |||||||||||||
Equity attributable to shareholders of the Company | 381.9 | 342.4 | 469.5 | |||||||||||
Non-controlling interests | 3.7 | 9.5 | 8.0 | |||||||||||
Total equity | 385.6 | 351.9 | 477.5 | |||||||||||
Total liabilities and equity | 1,458.5 | 1,346.7 | 1,590.0 |
Canada Goose Holdings Inc. | Page 3 of 30 |
Share capital | Contributed surplus | Retained earnings | Accumulated other comprehensive income (loss) | Total attributable to shareholders | Non-controlling interest | Total | ||||||||||||||||||||||||||
Notes | Multiple voting shares | Subordinate voting shares | Total | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Balance at April 2, 2023 | 1.4 | 117.3 | 118.7 | 28.5 | 316.5 | 5.8 | 469.5 | 8.0 | 477.5 | |||||||||||||||||||||||
Normal course issuer bid purchase of subordinate voting shares | 11 | — | (2.6) | (2.6) | — | (23.7) | — | (26.3) | — | (26.3) | ||||||||||||||||||||||
Liability to broker under automatic share purchase plan | 11 | — | — | — | 10.0 | — | — | 10.0 | — | 10.0 | ||||||||||||||||||||||
Issuance of shares | 11 | — | 3.8 | 3.8 | (3.8) | — | — | — | — | — | ||||||||||||||||||||||
Net loss | — | — | — | — | (81.1) | — | (81.1) | (3.9) | (85.0) | |||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | 7.3 | 7.3 | (0.4) | 6.9 | |||||||||||||||||||||||
Share-based payment | 12 | — | — | — | 2.5 | — | — | 2.5 | — | 2.5 | ||||||||||||||||||||||
Balance at July 2, 2023 | 1.4 | 118.5 | 119.9 | 37.2 | 211.7 | 13.1 | 381.9 | 3.7 | 385.6 | |||||||||||||||||||||||
Balance at April 3, 2022 | 1.4 | 117.1 | 118.5 | 36.2 | 290.4 | (17.2) | 427.9 | — | 427.9 | |||||||||||||||||||||||
Initial recognition of non-controlling interest on business combination | — | — | — | — | — | — | — | 10.8 | 10.8 | |||||||||||||||||||||||
Put option for non-controlling interest | — | — | — | — | (20.7) | — | (20.7) | — | (20.7) | |||||||||||||||||||||||
Issuance of shares | 11 | — | 2.6 | 2.6 | (2.6) | — | — | — | — | — | ||||||||||||||||||||||
Net loss | — | — | — | — | (62.4) | — | (62.4) | (1.2) | (63.6) | |||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (5.1) | (5.1) | (0.1) | (5.2) | |||||||||||||||||||||||
Share-based payment | 12 | — | — | — | 2.7 | — | — | 2.7 | — | 2.7 | ||||||||||||||||||||||
Balance at July 3, 2022 | 1.4 | 119.7 | 121.1 | 36.3 | 207.3 | (22.3) | 342.4 | 9.5 | 351.9 |
Canada Goose Holdings Inc. | Page 4 of 30 |
First quarter ended | |||||||||||
Notes | July 2, 2023 |
July 3, 2022 |
|||||||||
$ | $ | ||||||||||
Operating activities | |||||||||||
Net loss | (85.0) | (63.6) | |||||||||
Items not affecting cash: | |||||||||||
Depreciation and amortization | 29.2 | 25.8 | |||||||||
Income tax recovery | (29.2) | (24.5) | |||||||||
Interest expense | 10 | 7.4 | 7.0 | ||||||||
Foreign exchange (gain) loss | (4.7) | 2.1 | |||||||||
Gain on disposal of assets | (0.1) | — | |||||||||
Share-based payment | 12 | 2.5 | 2.7 | ||||||||
Remeasurement of put option | 14 | 8.1 | — | ||||||||
Remeasurement of contingent consideration | 14 | (1.0) | — | ||||||||
(72.8) | (50.5) | ||||||||||
Changes in non-cash operating items | 16 | (98.9) | (123.5) | ||||||||
Income taxes paid | (30.1) | (16.2) | |||||||||
Interest paid | (7.5) | (6.7) | |||||||||
Net cash used in operating activities | (209.3) | (196.9) | |||||||||
Investing activities | |||||||||||
Purchase of property, plant and equipment | (5.2) | (2.5) | |||||||||
Investment in intangible assets | (0.2) | (1.1) | |||||||||
Initial direct costs of right-of-use assets | 7 | (0.3) | (0.1) | ||||||||
Net cash inflow from business combination | — | 2.8 | |||||||||
Net cash used in investing activities | (5.7) | (0.9) | |||||||||
Financing activities | |||||||||||
Mainland China Facilities borrowings | 10 | 12.6 | 4.6 | ||||||||
Japan Facility borrowings | 10 | 8.3 | 3.9 | ||||||||
Term loan repayments | 10 | (1.0) | (1.0) | ||||||||
Subordinate voting shares purchased and cancelled under NCIB | 11 | (27.5) | — | ||||||||
Principal payments on lease liabilities | 7 | (13.4) | (13.8) | ||||||||
Net cash used in financing activities | (21.0) | (6.3) | |||||||||
Effects of foreign currency exchange rate changes on cash | (2.5) | (1.8) | |||||||||
Decrease in cash | (238.5) | (205.9) | |||||||||
Cash, beginning of period | 286.5 | 287.7 | |||||||||
Cash, end of period | 48.0 | 81.8 |
Canada Goose Holdings Inc. | Page 5 of 30 |
Canada Goose Holdings Inc. | Page 6 of 30 |
Canada Goose Holdings Inc. | Page 7 of 30 |
Canada Goose Holdings Inc. | Page 8 of 30 |
First quarter ended July 2, 2023 | ||||||||||||||
(in millions of Canadian dollars) | DTC | Wholesale | Other | Total | ||||||||||
$ | $ | $ | $ | |||||||||||
Revenue | 55.8 | 27.1 | 1.9 | 84.8 | ||||||||||
Cost of sales | 15.0 | 13.3 | 1.3 | 29.6 | ||||||||||
Gross profit | 40.8 | 13.8 | 0.6 | 55.2 | ||||||||||
SG&A expenses | 54.8 | 14.1 | 86.0 | 154.9 | ||||||||||
Operating loss | (14.0) | (0.3) | (85.4) | (99.7) | ||||||||||
Net interest, finance and other costs | 14.5 | |||||||||||||
Loss before income taxes | (114.2) | |||||||||||||
First quarter ended July 3, 2022 | ||||||||||||||
(in millions of Canadian dollars) | DTC | Wholesale | Other | Total | ||||||||||
$ | $ | $ | $ | |||||||||||
Revenue | 34.8 | 33.2 | 1.9 | 69.9 | ||||||||||
Cost of sales | 9.5 | 16.4 | 1.3 | 27.2 | ||||||||||
Gross profit | 25.3 | 16.8 | 0.6 | 42.7 | ||||||||||
SG&A expenses (reclassified) | 42.0 | 11.2 | 71.7 | 124.9 | ||||||||||
Operating (loss) income (reclassified) | (16.7) | 5.6 | (71.1) | (82.2) | ||||||||||
Net interest, finance and other costs (reclassified) | 5.9 | |||||||||||||
Loss before income taxes | (88.1) |
Canada Goose Holdings Inc. | Page 9 of 30 |
First quarter ended | ||||||||
(in millions of Canadian dollars) | July 2, 2023 |
July 3, 2022 |
||||||
$ | $ | |||||||
Canada | 23.5 | 17.9 | ||||||
United States | 18.1 | 15.7 | ||||||
North America | 41.6 | 33.6 | ||||||
Asia Pacific | 24.5 | 16.1 | ||||||
EMEA1 |
18.7 | 20.2 | ||||||
Revenue | 84.8 | 69.9 |
First quarter ended | ||||||||
(in millions of Canadian dollars, except share and per share amounts) | July 2, 2023 |
July 3, 2022 |
||||||
Net loss attributable to shareholders of the Company | $ | (81.1) | $ | (62.4) | ||||
Weighted average number of multiple and subordinate voting shares outstanding1 |
103,710,762 | 105,234,474 | ||||||
Loss per share attributable to shareholders of the Company | ||||||||
Basic and diluted | $ | (0.78) | $ | (0.59) | ||||
(in millions of Canadian dollars) | July 2, 2023 |
July 3, 2022 |
April 2, 2023 |
||||||||
$ | $ | $ | |||||||||
Trade accounts receivable | 38.0 | 25.3 | 30.4 | ||||||||
Credit card receivables | 2.1 | 2.0 | 2.5 | ||||||||
Other receivables | 11.8 | 21.7 | 19.5 | ||||||||
51.9 | 49.0 | 52.4 | |||||||||
Less: expected credit loss and sales allowances | (1.0) | (0.8) | (1.5) | ||||||||
Trade receivables | 50.9 | 48.2 | 50.9 |
Canada Goose Holdings Inc. | Page 10 of 30 |
(in millions of Canadian dollars) | July 2, 2023 |
July 3, 2022 |
April 2, 2023 |
||||||||
$ | $ | $ | |||||||||
Raw materials | 52.5 | 75.7 | 60.3 | ||||||||
Work in progress | 19.2 | 15.9 | 17.5 | ||||||||
Finished goods | 450.4 | 413.1 | 394.8 | ||||||||
Total inventories at the lower of cost and net realizable value | 522.1 | 504.7 | 472.6 |
(in millions of Canadian dollars) | July 2, 2023 |
July 3, 2022 |
April 2, 2023 |
||||||||
$ | $ | $ | |||||||||
Raw material shrink reserves | 0.2 | — | 0.2 | ||||||||
Finished goods shrink reserves | 0.9 | 0.7 | 0.4 | ||||||||
Raw material obsolete inventory reserves | 19.0 | 7.3 | 20.5 | ||||||||
Finished goods obsolete inventory reserves | 22.4 | 18.9 | 22.1 | ||||||||
Provision for obsolescence | 42.5 | 26.9 | 43.2 |
First quarter ended | ||||||||
(in millions of Canadian dollars) | July 2, 2023 |
July 3, 2022 |
||||||
$ | $ | |||||||
Cost of goods manufactured | 27.0 | 24.8 | ||||||
Depreciation and amortization | 2.6 | 2.4 | ||||||
29.6 | 27.2 |
Canada Goose Holdings Inc. | Page 11 of 30 |
(in millions of Canadian dollars) | Retail stores | Manufacturing facilities | Other | Total | ||||||||||
Cost | $ | $ | $ | $ | ||||||||||
April 2, 2023 | 396.7 | 44.9 | 58.4 | 500.0 | ||||||||||
Additions | 8.1 | — | 0.5 | 8.6 | ||||||||||
Lease modifications | 4.5 | — | — | 4.5 | ||||||||||
Derecognition on termination | (4.0) | — | — | (4.0) | ||||||||||
Impact of foreign currency translation | (9.4) | — | (0.8) | (10.2) | ||||||||||
July 2, 2023 | 395.9 | 44.9 | 58.1 | 498.9 | ||||||||||
April 3, 2022 | 296.3 | 36.7 | 17.4 | 350.4 | ||||||||||
Additions | 15.9 | — | 34.6 | 50.5 | ||||||||||
Additions from business combinations | 1.5 | — | 1.8 | 3.3 | ||||||||||
Lease modifications | 0.2 | — | — | 0.2 | ||||||||||
Impact of foreign currency translation | (1.1) | — | 0.1 | (1.0) | ||||||||||
July 3, 2022 | 312.8 | 36.7 | 53.9 | 403.4 |
(in millions of Canadian dollars) | Retail stores | Manufacturing facilities | Other | Total | ||||||||||
Accumulated depreciation | $ | $ | $ | $ | ||||||||||
April 2, 2023 | 171.1 | 20.6 | 16.5 | 208.2 | ||||||||||
Depreciation | 15.1 | 1.5 | 1.4 | 18.0 | ||||||||||
Derecognition on termination | (4.0) | — | — | (4.0) | ||||||||||
Impact of foreign currency translation | (4.3) | — | (0.3) | (4.6) | ||||||||||
July 2, 2023 | 177.9 | 22.1 | 17.6 | 217.6 | ||||||||||
April 3, 2022 | 110.1 | 15.2 | 9.9 | 135.2 | ||||||||||
Depreciation | 12.6 | 1.3 | 1.8 | 15.7 | ||||||||||
Impact of foreign currency translation | (0.6) | — | (0.1) | (0.7) | ||||||||||
July 3, 2022 | 122.1 | 16.5 | 11.6 | 150.2 | ||||||||||
Net book value | ||||||||||||||
July 2, 2023 | 218.0 | 22.8 | 40.5 | 281.3 | ||||||||||
July 3, 2022 | 190.7 | 20.2 | 42.3 | 253.2 | ||||||||||
April 2, 2023 | 225.6 | 24.3 | 41.9 | 291.8 |
Canada Goose Holdings Inc. | Page 12 of 30 |
(in millions of Canadian dollars) | Retail stores | Manufacturing facilities | Other | Total | ||||||||||
$ | $ | $ | $ | |||||||||||
April 2, 2023 | 259.2 | 27.7 | 47.9 | 334.8 | ||||||||||
Additions | 8.1 | — | 0.2 | 8.3 | ||||||||||
Lease modifications | 4.5 | — | — | 4.5 | ||||||||||
Principal payments | (13.5) | (1.3) | 1.4 | (13.4) | ||||||||||
Impact of foreign currency translation | (5.8) | — | (0.5) | (6.3) | ||||||||||
July 2, 2023 | 252.5 | 26.4 | 49.0 | 327.9 | ||||||||||
April 3, 2022 | 217.2 | 24.8 | 8.7 | 250.7 | ||||||||||
Additions | 15.9 | — | 34.6 | 50.5 | ||||||||||
Additions from business combinations | 1.5 | — | 1.7 | 3.2 | ||||||||||
Lease modifications | 0.2 | — | — | 0.2 | ||||||||||
Principal payments | (11.8) | (1.3) | (0.7) | (13.8) | ||||||||||
Impact of foreign currency translation | (0.4) | — | 0.1 | (0.3) | ||||||||||
July 3, 2022 | 222.6 | 23.5 | 44.4 | 290.5 |
(in millions of Canadian dollars) | Retail stores | Manufacturing facilities | Other | Total | ||||||||||
$ | $ | $ | $ | |||||||||||
Current lease liabilities | 63.5 | 6.0 | 5.8 | 75.3 | ||||||||||
Non-current lease liabilities | 189.0 | 20.4 | 43.2 | 252.6 | ||||||||||
July 2, 2023 | 252.5 | 26.4 | 49.0 | 327.9 | ||||||||||
Current lease liabilities | 50.8 | 5.8 | 3.3 | 59.9 | ||||||||||
Non-current lease liabilities | 171.8 | 17.7 | 41.1 | 230.6 | ||||||||||
July 3, 2022 | 222.6 | 23.5 | 44.4 | 290.5 | ||||||||||
Current lease liabilities | 64.7 | 6.1 | 5.3 | 76.1 | ||||||||||
Non-current lease liabilities | 194.5 | 21.6 | 42.6 | 258.7 | ||||||||||
April 2, 2023 | 259.2 | 27.7 | 47.9 | 334.8 |
Canada Goose Holdings Inc. | Page 13 of 30 |
(in millions of Canadian dollars) | July 2, 2023 |
July 3, 2022 |
April 2, 2023 |
||||||||
$ | $ | $ | |||||||||
Trade payables | 44.5 | 47.4 | 60.1 | ||||||||
Accrued liabilities | 86.2 | 73.9 | 82.4 | ||||||||
Employee benefits | 26.8 | 26.8 | 21.9 | ||||||||
Derivative financial instruments | 9.0 | 13.7 | 3.3 | ||||||||
ASPP liability (note 11) | 10.0 | — | 20.0 | ||||||||
Other payables | 2.1 | 3.8 | 7.9 | ||||||||
Accounts payable and accrued liabilities | 178.6 | 165.6 | 195.6 |
(in millions of Canadian dollars) | Warranty | Sales returns | Asset retirement obligations | Total | ||||||||||
$ | $ | $ | $ | |||||||||||
Current provisions | 7.4 | 8.9 | — | 16.3 | ||||||||||
Non-current provisions | 21.4 | — | 12.8 | 34.2 | ||||||||||
July 2, 2023 | 28.8 | 8.9 | 12.8 | 50.5 | ||||||||||
Current provisions | 5.9 | 10.3 | — | 16.2 | ||||||||||
Non-current provisions | 22.1 | — | 8.1 | 30.2 | ||||||||||
July 3, 2022 | 28.0 | 10.3 | 8.1 | 46.4 | ||||||||||
Current provisions | 6.0 | 15.6 | — | 21.6 | ||||||||||
Non-current provisions | 24.4 | — | 12.1 | 36.5 | ||||||||||
April 2, 2023 | 30.4 | 15.6 | 12.1 | 58.1 |
Canada Goose Holdings Inc. | Page 14 of 30 |
Canada Goose Holdings Inc. | Page 15 of 30 |
(in millions of Canadian dollars) | July 2, 2023 |
July 3, 2022 |
April 2, 2023 |
||||||||
$ | $ | $ | |||||||||
Term loan | 387.6 | 380.7 | 396.3 | ||||||||
Unamortized portion of deferred transaction costs | (0.6) | (0.7) | (0.6) | ||||||||
387.0 | 380.0 | 395.7 |
Canada Goose Holdings Inc. | Page 16 of 30 |
First quarter ended | ||||||||
(in millions of Canadian dollars) | July 2, 2023 |
July 3, 2022 |
||||||
Reclassified | ||||||||
$ | $ | |||||||
Interest expense | ||||||||
Mainland China Facilities | 0.1 | — | ||||||
Japan Facility1 |
— | — | ||||||
Revolving credit facility | 0.1 | 0.1 | ||||||
Term loan | 5.0 | 4.3 | ||||||
Lease liabilities | 4.6 | 2.6 | ||||||
Standby fees | 0.3 | 0.4 | ||||||
Foreign exchange gains on term loan net of hedges | (2.2) | (1.5) | ||||||
Fair value remeasurement on the put option liability (note 14) | 8.1 | — | ||||||
Fair value remeasurement on the contingent consideration (note 14) | (1.0) | — | ||||||
Interest income | (0.7) | (0.1) | ||||||
Other costs | 0.2 | 0.1 | ||||||
Net interest, finance and other costs | 14.5 | 5.9 |
Canada Goose Holdings Inc. | Page 17 of 30 |
(in millions of Canadian dollars, except share amounts) | Multiple voting shares | Subordinate voting shares | Total | |||||||||||||||||||||||
Number | $ | Number | $ | Number | $ | |||||||||||||||||||||
April 2, 2023 | 51,004,076 | 1.4 | 53,184,912 | 117.3 | 104,188,988 | 118.7 | ||||||||||||||||||||
Purchase of subordinate voting shares | — | — | (1,156,959) | (2.6) | (1,156,959) | (2.6) | ||||||||||||||||||||
Total share purchases | — | — | (1,156,959) | (2.6) | (1,156,959) | (2.6) | ||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | ||||||||||||||||||||
Settlement of RSUs | — | — | 133,659 | 3.8 | 133,659 | 3.8 | ||||||||||||||||||||
Total share issuances | — | — | 133,659 | 3.8 | 133,659 | 3.8 | ||||||||||||||||||||
July 2, 2023 | 51,004,076 | 1.4 | 52,161,612 | 118.5 | 103,165,688 | 119.9 |
(in millions of Canadian dollars, except share amounts) | Multiple voting shares | Subordinate voting shares | Total | |||||||||||||||||||||||
Number | $ | Number | $ | Number | $ | |||||||||||||||||||||
April 3, 2022 | 51,004,076 | 1.4 | 54,190,432 | 117.1 | 105,194,508 | 118.5 | ||||||||||||||||||||
Exercise of stock options | — | — | 55,248 | — | 55,248 | — | ||||||||||||||||||||
Settlement of RSUs | — | — | 84,219 | 2.6 | 84,219 | 2.6 | ||||||||||||||||||||
Total share issuances | — | — | 139,467 | 2.6 | 139,467 | 2.6 | ||||||||||||||||||||
July 3, 2022 | 51,004,076 | 1.4 | 54,329,899 | 119.7 | 105,333,975 | 121.1 |
Canada Goose Holdings Inc. | Page 18 of 30 |
First quarter ended | |||||||||||||||||
July 2, 2023 |
July 3, 2022 |
||||||||||||||||
(in millions of Canadian dollars, except share and per share amounts) | Weighted average exercise price | Number of shares | Weighted average exercise price | Number of shares | |||||||||||||
Options outstanding, beginning of period | $ | 36.58 | 4,055,199 | $ | 42.99 | 2,722,690 | |||||||||||
Granted to purchase shares | $ | 22.24 | 752,811 | $ | 24.64 | 1,568,221 | |||||||||||
Exercised | $ | — | — | $ | 0.25 | (55,248) | |||||||||||
Cancelled | $ | 26.97 | (91,884) | $ | 40.01 | (26,572) | |||||||||||
Options outstanding, end of period | $ | 34.48 | 4,716,126 | $ | 36.73 | 4,209,091 |
First quarter ended | |||||||||||
July 2, 2023 |
July 3, 2022 |
||||||||||
Number | Number | ||||||||||
RSUs outstanding, beginning of period | 318,082 | 215,590 | |||||||||
Granted | 374,656 | 207,820 | |||||||||
Settled | (133,659) | (84,219) | |||||||||
Cancelled | (2,959) | (3,282) | |||||||||
RSUs outstanding, end of period | 556,120 | 335,909 |
Canada Goose Holdings Inc. | Page 19 of 30 |
First quarter ended | |||||||||||
July 2, 2023 |
July 3, 2022 |
||||||||||
Number | Number | ||||||||||
PSUs outstanding, beginning of period | — | — | |||||||||
Granted | 395,577 | — | |||||||||
PSUs outstanding, end of period | 395,577 | — |
First quarter ended | |||||||||||
(in millions of Canadian dollars, except share and per share amounts) | July 2, 2023 |
July 3, 2022 |
|||||||||
Weighted average stock price valuation | $ | 22.24 | $ | 24.64 | |||||||
Weighted average exercise price | $ | 22.24 | $ | 24.64 | |||||||
Risk-free interest rate | 4.11 | % | 2.51 | % | |||||||
Expected life in years | 5 | 5 | |||||||||
Expected dividend yield | — | % | — | % | |||||||
Volatility | 40 | % | 40 | % | |||||||
Weighted average fair value of options issued | $ | 7.51 | $ | 7.86 |
Canada Goose Holdings Inc. | Page 20 of 30 |
Canada Goose Holdings Inc. | Page 21 of 30 |
July 2, 2023 |
|||||||||||||||||
(in millions of Canadian dollars) | Level 1 | Level 2 | Level 3 | Carrying value | Fair value | ||||||||||||
$ | $ | $ | $ | $ | |||||||||||||
Financial assets | |||||||||||||||||
Derivatives included in other current assets | — | 32.4 | — | 32.4 | 32.4 | ||||||||||||
Derivatives included in other long-term assets | — | 12.2 | — | 12.2 | 12.2 | ||||||||||||
Financial liabilities | |||||||||||||||||
Derivatives included in accounts payable and accrued liabilities | — | 9.0 | — | 9.0 | 9.0 | ||||||||||||
Mainland China Facilities | — | 22.4 | — | 22.4 | 22.4 | ||||||||||||
Japan Facility | — | 22.0 | — | 22.0 | 22.0 | ||||||||||||
Term loan | — | 387.0 | — | 387.0 | 424.0 | ||||||||||||
Derivatives included in other long-term liabilities | — | 10.2 | — | 10.2 | 10.2 | ||||||||||||
Put option liability included in other long-term liabilities | — | — | 37.1 | 37.1 | 37.1 | ||||||||||||
Contingent consideration included in other long-term liabilities | — | — | 14.2 | 14.2 | 14.2 |
July 3, 2022 |
|||||||||||||||||
(in millions of Canadian dollars) | Level 1 | Level 2 | Level 3 | Carrying value | Fair value | ||||||||||||
$ | $ | $ | $ | $ | |||||||||||||
Financial assets | |||||||||||||||||
Derivatives included in other current assets | — | 17.1 | — | 17.1 | 17.1 | ||||||||||||
Derivatives included in other long-term assets | — | 17.7 | — | 17.7 | 17.7 | ||||||||||||
Financial liabilities | |||||||||||||||||
Derivatives included in accounts payable and accrued liabilities | — | 13.7 | — | 13.7 | 13.7 | ||||||||||||
Mainland China Facilities | — | — | 4.6 | 4.6 | 4.6 | ||||||||||||
Japan Facility | — | 23.3 | — | 23.3 | 23.3 | ||||||||||||
Term loan | — | 380.0 | — | 380.0 | 404.9 | ||||||||||||
Derivatives included in other long-term liabilities | — | 10.5 | — | 10.5 | 10.5 | ||||||||||||
Put option liability included in other long-term liabilities | — | — | 20.7 | 20.7 | 20.7 | ||||||||||||
Contingent consideration included in other long-term liabilities | — | — | 19.5 | 19.5 | 19.5 |
Canada Goose Holdings Inc. | Page 22 of 30 |
April 2, 2023 |
|||||||||||||||||
(in millions of Canadian dollars) | Level 1 | Level 2 | Level 3 | Carrying value | Fair value | ||||||||||||
$ | $ | $ | $ | $ | |||||||||||||
Financial assets | |||||||||||||||||
Derivatives included in other current assets | — | 12.4 | — | 12.4 | 12.4 | ||||||||||||
Derivatives included in other long-term assets | — | 12.4 | — | 12.4 | 12.4 | ||||||||||||
Financial liabilities | |||||||||||||||||
Derivatives included in accounts payable and accrued liabilities | — | 3.3 | — | 3.3 | 3.3 | ||||||||||||
Mainland China Facilities | — | — | 9.8 | 9.8 | 9.8 | ||||||||||||
Japan Facility | — | 13.7 | — | 13.7 | 13.7 | ||||||||||||
Term loan | — | 395.7 | — | 395.7 | 433.1 | ||||||||||||
Derivatives included in other long-term liabilities | — | 6.0 | — | 6.0 | 6.0 | ||||||||||||
Put option liability included in other long-term liabilities | — | — | 32.1 | 32.1 | 32.1 | ||||||||||||
Contingent consideration included in other long-term liabilities | — | — | 16.8 | 16.8 | 16.8 |
Canada Goose Holdings Inc. | Page 23 of 30 |
Contractual obligations by fiscal year | Q2 to Q4 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | ||||||||||||||||||
(in millions of Canadian dollars) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Accounts payable and accrued liabilities | 178.6 | — | — | — | — | — | — | 178.6 | ||||||||||||||||||
Mainland China Facilities | 22.4 | — | — | — | — | — | — | 22.4 | ||||||||||||||||||
Japan Facility | 22.0 | — | — | — | — | — | — | 22.0 | ||||||||||||||||||
Term loan | 3.0 | 4.0 | 4.0 | 4.0 | 372.6 | — | — | 387.6 | ||||||||||||||||||
Interest commitments relating to borrowings1 |
25.9 | 34.0 | 33.8 | 33.8 | 16.9 | — | — | 144.4 | ||||||||||||||||||
Lease obligations | 65.2 | 80.8 | 62.2 | 52.4 | 38.3 | 29.0 | 72.4 | 400.3 | ||||||||||||||||||
Pension obligation | — | — | — | — | — | — | 1.5 | 1.5 | ||||||||||||||||||
Total contractual obligations | 317.1 | 118.8 | 100.0 | 90.2 | 427.8 | 29.0 | 73.9 | 1,156.8 |
Canada Goose Holdings Inc. | Page 24 of 30 |
Canada Goose Holdings Inc. | Page 25 of 30 |
First quarter ended | |||||||||||||||||
July 2, 2023 |
July 3, 2022 |
||||||||||||||||
(in millions of Canadian dollars) | Net gain | Tax expense | Net gain | Tax expense | |||||||||||||
$ | $ | $ | $ | ||||||||||||||
Forward foreign exchange contracts designated as cash flow hedges | 7.2 | (1.8) | 0.7 | (0.4) |
Canada Goose Holdings Inc. | Page 26 of 30 |
First quarter ended | ||||||||
(in millions of Canadian dollars) | July 2, 2023 |
July 3, 2022 |
||||||
Loss (gain) from other comprehensive income | $ | $ | ||||||
Forward foreign exchange contracts designated as cash flow hedges | ||||||||
Revenue | 0.1 | 0.7 | ||||||
SG&A expenses | (0.1) | 1.0 | ||||||
Inventory | (0.1) | (0.1) |
(in millions) | Aggregate Amounts | Currency | ||||||
Forward contract to purchase Canadian dollars | USD | 162.7 | U.S. dollars | |||||
€ | 212.1 | euros | ||||||
¥ | 1,875.0 | Japanese yen | ||||||
Forward contract to sell Canadian dollars | USD | 69.2 | U.S. dollars | |||||
€ | 118.1 | euros | ||||||
Forward contract to purchase euros | CHF | 1.5 | Swiss francs | |||||
CNY | 1,181.1 | Chinese yuan | ||||||
£ | 62.6 | British pounds sterling | ||||||
HKD | 78.5 | Hong Kong dollars | ||||||
Forward contract to sell euros | CHF | 7.9 | Swiss francs | |||||
CNY | 184.0 | Chinese yuan | ||||||
£ | 10.0 | British pounds sterling | ||||||
HKD | 78.0 | Hong Kong dollars |
Canada Goose Holdings Inc. | Page 27 of 30 |
First quarter ended | |||||||||||||||||
July 2, 2023 |
July 3, 2022 |
||||||||||||||||
(in millions of Canadian dollars) | Net gain | Tax expense | Net gain | Tax expense | |||||||||||||
$ | $ | $ | $ | ||||||||||||||
Swaps designated as cash flow hedges | 2.6 | (1.2) | 0.6 | (0.2) | |||||||||||||
First quarter ended | ||||||||
(in millions of Canadian dollars) | July 2, 2023 |
July 3, 2022 |
||||||
(Gain) loss from other comprehensive income | $ | $ | ||||||
Swaps designated as cash flow hedges | (0.5) | 0.2 |
Canada Goose Holdings Inc. | Page 28 of 30 |
First quarter ended | ||||||||
(in millions of Canadian dollars) | July 2, 2023 |
July 3, 2022 |
||||||
$ | $ | |||||||
Trade receivables | (0.5) | (4.5) | ||||||
Inventories | (52.3) | (85.9) | ||||||
Other current assets | (5.0) | (4.8) | ||||||
Accounts payable and accrued liabilities | (35.3) | (14.3) | ||||||
Provisions | (7.6) | (3.2) | ||||||
Other | 1.8 | (10.8) | ||||||
Change in non-cash operating items | (98.9) | (123.5) |
Mainland China Facilities | Japan Facility | Revolving credit facility | Term loan | Lease liabilities | Share capital | |||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||
April 2, 2023 | 9.8 | 13.7 | (0.5) | 395.7 | 334.8 | 118.7 | ||||||||||||||
Cash flows: | ||||||||||||||||||||
Mainland China Facilities borrowings | 12.6 | — | — | — | — | — | ||||||||||||||
Japan Facility borrowings | — | 8.3 | — | — | — | — | ||||||||||||||
Term loan repayments | — | — | — | (1.0) | — | — | ||||||||||||||
Subordinate voting shares purchased and cancelled under NCIB | — | — | — | — | — | (26.3) | ||||||||||||||
Principal payments on lease liabilities | — | — | — | — | (13.4) | — | ||||||||||||||
Non-cash items: | ||||||||||||||||||||
Accrued transaction costs | — | — | (0.7) | — | — | — | ||||||||||||||
Amortization of deferred transaction costs | — | — | 0.1 | — | — | — | ||||||||||||||
Unrealized foreign exchange gain | — | — | — | (7.7) | (6.3) | — | ||||||||||||||
Additions and amendments to lease liabilities (note 7) | — | — | — | — | 12.8 | — | ||||||||||||||
Share purchase charge to retained earnings (note 11) | — | — | — | — | — | 23.7 | ||||||||||||||
Contributed surplus on share issuances (note 11) | — | — | — | — | — | 3.8 | ||||||||||||||
July 2, 2023 | 22.4 | 22.0 | (1.1) | 387.0 | 327.9 | 119.9 |
Canada Goose Holdings Inc. | Page 29 of 30 |
Mainland China Facilities | Japan Facility | Revolving credit facility | Term loan | Lease liabilities | Share capital | |||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||
April 3, 2022 | — | — | (0.9) | 370.0 | 250.7 | 118.5 | ||||||||||||||
Cash flows: | ||||||||||||||||||||
Cash inflow from business combination | — | 19.4 | — | — | 3.2 | — | ||||||||||||||
Mainland China Facilities borrowings | 4.6 | — | — | — | — | — | ||||||||||||||
Japan Facility borrowings | — | 3.9 | — | — | — | — | ||||||||||||||
Term loan repayments | — | — | — | (1.0) | — | — | ||||||||||||||
Principal payments on lease liabilities | — | — | — | — | (13.8) | — | ||||||||||||||
Non-cash items: | ||||||||||||||||||||
Amortization of deferred transaction costs | — | — | 0.1 | — | — | — | ||||||||||||||
Unrealized foreign exchange loss (gain) | — | — | — | 11.0 | (0.3) | — | ||||||||||||||
Additions and amendments to lease liabilities (note 7) | — | — | — | — | 50.7 | — | ||||||||||||||
Contributed surplus on share issuances (note 11) | — | — | — | — | — | 2.6 | ||||||||||||||
July 3, 2022 | 4.6 | 23.3 | (0.8) | 380.0 | 290.5 | 121.1 |
Canada Goose Holdings Inc. | Page 30 of 30 |
Canada Goose Holdings Inc. | Page 1 of 30 |
Canada Goose Holdings Inc. | Page 2 of 30 |
Canada Goose Holdings Inc. | Page 3 of 30 |
Canada Goose Holdings Inc. | Page 4 of 30 |
CAD $ millions (except per share data) |
First quarter ended | ||||||||||||||||
July 2, 2023 |
July 3, 2022 |
% Change |
|||||||||||||||
Reclassified | |||||||||||||||||
Revenue | 84.8 | 69.9 | 21.3 | % | |||||||||||||
Gross profit | 55.2 | 42.7 | 29.3 | % | |||||||||||||
Gross margin | 65.1 | % | 61.1 | % | 400 | bps | |||||||||||
Operating loss | (99.7) | (82.2) | (21.3) | % | |||||||||||||
Net loss | (85.0) | (63.6) | (33.6) | % | |||||||||||||
Net loss attributable to shareholders of the Company | (81.1) | (62.4) | (30.0) | % | |||||||||||||
Loss per share attributable to shareholders of the Company | |||||||||||||||||
Basic and diluted | $ | (0.78) | $ | (0.59) | (32.2) | % | |||||||||||
CAD $ millions | July 2, 2023 |
July 3, 2022 |
April 2, 2023 |
||||||||||||||
Financial Position: | |||||||||||||||||
Cash | 48.0 | 81.8 | 286.5 | ||||||||||||||
Net working capital1 |
452.0 | 415.1 | 328.0 | ||||||||||||||
Total assets | 1,458.5 | 1,346.7 | 1,590.0 | ||||||||||||||
Total non-current liabilities | 744.7 | 709.1 | 760.1 | ||||||||||||||
Equity | 385.6 | 351.9 | 477.5 |
Canada Goose Holdings Inc. | Page 5 of 30 |
Canada Goose Holdings Inc. | Page 6 of 30 |
Canada Goose Holdings Inc. | Page 7 of 30 |
July 2, 2023 |
July 3, 2022 |
Change | April 2, 2023 |
Q1 Fiscal 2024 Additions | |||||||||||||||||||||||||
Canada | 9 | 9 | — | 9 | — | ||||||||||||||||||||||||
United States | 10 | 6 | 4 | 8 | 2 | ||||||||||||||||||||||||
North America | 19 | 15 | 4 | 17 | 2 | ||||||||||||||||||||||||
Asia Pacific | 26 | 21 | 5 | 26 | — | ||||||||||||||||||||||||
EMEA1 |
9 | 7 | 2 | 8 | 1 | ||||||||||||||||||||||||
Total permanent stores | 54 | 43 | 11 | 51 | 3 |
CAD $ millions (except share and per share data) |
First quarter ended | $ Change |
% Change |
||||||||||||||||||||
July 2, 2023 |
July 3, 2022 |
||||||||||||||||||||||
Reclassified | |||||||||||||||||||||||
Revenue | 84.8 | 69.9 | 14.9 | 21.3 | % | ||||||||||||||||||
Cost of sales | 29.6 | 27.2 | (2.4) | (8.8) | % | ||||||||||||||||||
Gross profit | 55.2 | 42.7 | 12.5 | 29.3 | % | ||||||||||||||||||
Gross margin | 65.1 | % | 61.1 | % | 400 | bps | |||||||||||||||||
SG&A expenses | 154.9 | 124.9 | (30.0) | (24.0) | % | ||||||||||||||||||
SG&A expenses as % of revenue | 182.7 | % | 178.7 | % | (400) | bps | |||||||||||||||||
Operating loss | (99.7) | (82.2) | (17.5) | (21.3) | % | ||||||||||||||||||
Operating margin | (117.6) | % | (117.6) | % | — | bps | |||||||||||||||||
Net interest, finance and other costs | 14.5 | 5.9 | (8.6) | (145.8) | % | ||||||||||||||||||
Loss before income taxes | (114.2) | (88.1) | (26.1) | (29.6) | % | ||||||||||||||||||
Income tax recovery | (29.2) | (24.5) | 4.7 | 19.2 | % | ||||||||||||||||||
Effective tax rate | 25.6 | % | 27.8 | % | (220) | bps | |||||||||||||||||
Net loss | (85.0) | (63.6) | (21.4) | (33.6) | % | ||||||||||||||||||
Net loss attributable to non-controlling interest | (3.9) | (1.2) | (2.7) | (225.0) | % | ||||||||||||||||||
Net loss attributable to shareholders of the Company | (81.1) | (62.4) | (18.7) | (30.0) | % | ||||||||||||||||||
Weighted average number of shares outstanding | |||||||||||||||||||||||
Basic and diluted | 103,710,762 | 105,234,474 | |||||||||||||||||||||
Loss per share attributable to shareholders of the Company | |||||||||||||||||||||||
Basic and diluted | $ | (0.78) | $ | (0.59) | (0.19) | (32.2) | % | ||||||||||||||||
Canada Goose Holdings Inc. | Page 8 of 30 |
First quarter ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
CAD $ millions | July 2, 2023 |
July 3, 2022 |
As reported | Foreign exchange impact | In constant currency1 |
As reported | In constant currency1 |
||||||||||||||||||||||||||||||||||
DTC | 55.8 | 34.8 | 21.0 | (2.2) | 18.8 | 60.3 | % | 54.0 | % | ||||||||||||||||||||||||||||||||
Wholesale | 27.1 | 33.2 | (6.1) | (0.2) | (6.3) | (18.4) | % | (19.0) | % | ||||||||||||||||||||||||||||||||
Other | 1.9 | 1.9 | — | — | — | — | % | — | % | ||||||||||||||||||||||||||||||||
Total revenue | 84.8 | 69.9 | 14.9 | (2.4) | 12.5 | 21.3 | % | 17.9 | % |
First quarter ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
CAD $ millions | July 2, 2023 |
July 3, 2022 |
As reported | Foreign exchange impact | In constant currency2 |
As reported | In constant currency2 |
||||||||||||||||||||||||||||||||||
Canada | 23.5 | 17.9 | 5.6 | — | 5.6 | 31.3 | % | 31.3 | % | ||||||||||||||||||||||||||||||||
United States | 18.1 | 15.7 | 2.4 | (1.2) | 1.2 | 15.3 | % | 7.6 | % | ||||||||||||||||||||||||||||||||
North America | 41.6 | 33.6 | 8.0 | (1.2) | 6.8 | 23.8 | % | 20.2 | % | ||||||||||||||||||||||||||||||||
Asia Pacific | 24.5 | 16.1 | 8.4 | (1.5) | 6.9 | 52.2 | % | 42.9 | % | ||||||||||||||||||||||||||||||||
EMEA1 |
18.7 | 20.2 | (1.5) | 0.3 | (1.2) | (7.4) | % | (5.9) | % | ||||||||||||||||||||||||||||||||
Total revenue | 84.8 | 69.9 | 14.9 | (2.4) | 12.5 | 21.3 | % | 17.9 | % |
Canada Goose Holdings Inc. | Page 9 of 30 |
Canada Goose Holdings Inc. | Page 10 of 30 |
First quarter ended | |||||||||||||||||||||||||||||||||||
July 2, 2023 |
July 3, 2022 |
||||||||||||||||||||||||||||||||||
CAD $ millions | Gross profit | Gross margin | Gross profit | Gross margin | $ Change |
Change in bps |
|||||||||||||||||||||||||||||
DTC | 40.8 | 73.1 | % | 25.3 | 72.7 | % | 15.5 | 40 | bps | ||||||||||||||||||||||||||
Wholesale | 13.8 | 50.9 | % | 16.8 | 50.6 | % | (3.0) | 30 | bps | ||||||||||||||||||||||||||
Other | 0.6 | 31.6 | % | 0.6 | 31.6 | % | — | — | bps | ||||||||||||||||||||||||||
Total gross profit | 55.2 | 65.1 | % | 42.7 | 61.1 | % | 12.5 | 400 | bps |
Canada Goose Holdings Inc. | Page 11 of 30 |
First quarter ended | |||||||||||||||||||||||||||||||||||
July 2, 2023 |
July 3, 2022 |
||||||||||||||||||||||||||||||||||
CAD $ millions | Reported | % of segment revenue | Reported | % of segment revenue | $ Change |
% Change |
|||||||||||||||||||||||||||||
Reclassified | Reclassified | ||||||||||||||||||||||||||||||||||
DTC | 54.8 | 98.2 | % | 42.0 | 120.7 | % | (12.8) | (30.5) | % | ||||||||||||||||||||||||||
Wholesale | 14.1 | 52.0 | % | 11.2 | 33.7 | % | (2.9) | (25.9) | % | ||||||||||||||||||||||||||
Other | 86.0 | 71.7 | (14.3) | (19.9) | % | ||||||||||||||||||||||||||||||
Total SG&A expenses | 154.9 | 182.7 | % | 124.9 | 178.7 | % | (30.0) | (24.0) | % |
Canada Goose Holdings Inc. | Page 12 of 30 |
First quarter ended | |||||||||||||||||||||||||||||||||||
July 2, 2023 |
July 3, 2022 |
||||||||||||||||||||||||||||||||||
CAD $ millions | Operating loss | Operating margin | Operating (loss) income | Operating margin | $ Change |
Change in bps |
|||||||||||||||||||||||||||||
Reclassified | Reclassified | ||||||||||||||||||||||||||||||||||
DTC | (14.0) | (25.1) | % | (16.7) | (48.0) | % | 2.7 | 2,290 | bps | ||||||||||||||||||||||||||
Wholesale | (0.3) | (1.1) | % | 5.6 | 16.9 | % | (5.9) | (1,800) | bps | ||||||||||||||||||||||||||
Other | (85.4) | (71.1) | (14.3) | ||||||||||||||||||||||||||||||||
Total operating loss | (99.7) | (117.6) | % | (82.2) | (117.6) | % | (17.5) | — | bps |
Canada Goose Holdings Inc. | Page 13 of 30 |
CAD $ millions (except per share data) | Revenue | % of fiscal year revenue | Net (loss) income attributable to shareholders of the Company | (Loss) earnings per share attributable to shareholders of the Company | Operating (loss) income (reclassified) | Adjusted EBIT1 |
Adjusted net (loss) income per diluted share attributable to shareholders of the Company1 |
||||||||||||||||||||||||||||
DTC | Wholesale | Other | Total | Basic | Diluted | ||||||||||||||||||||||||||||||
Fiscal 2024 | |||||||||||||||||||||||||||||||||||
First Quarter | 55.8 | 27.1 | 1.9 | 84.8 | — | % | (81.1) | $ | (0.78) | $ | (0.78) | (99.7) | (91.1) | $ | (0.70) | ||||||||||||||||||||
Fiscal 2023 | |||||||||||||||||||||||||||||||||||
Fourth Quarter | 227.5 | 45.5 | 20.2 | 293.2 | 24.1 | % | (3.1) | $ | (0.03) | $ | (0.03) | 17.6 | 27.6 | $ | 0.14 | ||||||||||||||||||||
Third Quarter | 450.2 | 114.4 | 12.1 | 576.7 | 47.4 | % | 134.9 | $ | 1.28 | $ | 1.28 | 190.7 | 197.1 | $ | 1.27 | ||||||||||||||||||||
Second Quarter | 94.8 | 180.7 | 1.7 | 277.2 | 22.8 | % | 3.3 | $ | 0.03 | $ | 0.03 | 21.5 | 26.3 | $ | 0.19 | ||||||||||||||||||||
First Quarter | 34.8 | 33.2 | 1.9 | 69.9 | 5.7 | % | (62.4) | $ | (0.59) | $ | (0.59) | (82.2) | (75.9) | $ | (0.56) | ||||||||||||||||||||
Fiscal 2022 | |||||||||||||||||||||||||||||||||||
Fourth Quarter | 185.6 | 34.9 | 2.6 | 223.1 | 20.3 | % | (9.1) | $ | (0.09) | $ | (0.09) | 2.1 | 12.4 | $ | 0.04 | ||||||||||||||||||||
Third Quarter | 443.7 | 138.4 | 4.0 | 586.1 | 53.4 | % | 151.3 | $ | 1.42 | $ | 1.40 | 204.5 | 205.0 | $ | 1.40 | ||||||||||||||||||||
Second Quarter | 82.0 | 149.1 | 1.8 | 232.9 | 21.2 | % | 9.9 | $ | 0.09 | $ | 0.09 | 15.6 | 16.2 | $ | 0.12 |
Canada Goose Holdings Inc. | Page 14 of 30 |
Canada Goose Holdings Inc. | Page 15 of 30 |
First quarter ended | |||||||||||
CAD $ millions (except per share data) | July 2, 2023 |
July 3, 2022 |
|||||||||
Reclassified | |||||||||||
Adjusted EBIT | (91.1) | (75.9) | |||||||||
Adjusted EBIT margin | (107.4) | % | (108.6) | % | |||||||
Adjusted EBITDA | (62.6) | (53.3) | |||||||||
Adjusted net loss attributable to shareholders of the Company | (73.1) | (58.8) | |||||||||
Adjusted net loss per basic and diluted share attributable to shareholders of the Company | $ | (0.70) | $ | (0.56) | |||||||
Free operating cash flow | (228.4) | (211.6) |
CAD $ millions | July 2, 2023 |
July 3, 2022 |
April 2, 2023 |
||||||||||||||
Net debt | (711.9) | (617.3) | (468.1) | ||||||||||||||
Net working capital | 452.0 | 415.1 | 328.0 |
Canada Goose Holdings Inc. | Page 16 of 30 |
Canada Goose Holdings Inc. | Page 17 of 30 |
First quarter ended | |||||||||||
CAD $ millions | July 2, 2023 |
July 3, 2022 |
|||||||||
Net loss | (85.0) | (63.6) | |||||||||
Add (deduct) the impact of: | |||||||||||
Income tax recovery | (29.2) | (24.5) | |||||||||
Net interest, finance and other costs | 14.5 | 5.9 | |||||||||
Operating loss | (99.7) | (82.2) | |||||||||
Net temporary store closure costs (a) | — | 2.2 | |||||||||
Head office transition costs (c) | 0.8 | 1.7 | |||||||||
Japan Joint Venture costs (e) | — | 1.4 | |||||||||
Strategic initiatives (g) | 7.8 | — | |||||||||
Legal proceeding costs (h) | — | 1.0 | |||||||||
Total adjustments | 8.6 | 6.3 | |||||||||
Adjusted EBIT | (91.1) | (75.9) | |||||||||
Adjusted EBIT margin | (107.4) | % | (108.6) | % | |||||||
Canada Goose Holdings Inc. | Page 18 of 30 |
First quarter ended | |||||||||||
CAD $ millions | July 2, 2023 |
July 3, 2022 |
|||||||||
Net loss | (85.0) | (63.6) | |||||||||
Add (deduct) the impact of: | |||||||||||
Income tax recovery | (29.2) | (24.5) | |||||||||
Net interest, finance and other costs | 14.5 | 5.9 | |||||||||
Operating loss | (99.7) | (82.2) | |||||||||
Net temporary store closure costs (a) | — | 2.2 | |||||||||
Head office transition costs (c) | 0.8 | 1.7 | |||||||||
Japan Joint Venture costs (e) | — | 1.4 | |||||||||
Strategic initiatives (g) | 7.8 | — | |||||||||
Legal proceeding costs (h) | — | 1.0 | |||||||||
Net depreciation and amortization (l) | 28.5 | 22.6 | |||||||||
Total adjustments | 37.1 | 28.9 | |||||||||
Adjusted EBITDA | (62.6) | (53.3) |
First quarter ended | |||||||||||
CAD $ millions | July 2, 2023 |
July 3, 2022 |
|||||||||
Net loss | (85.0) | (63.6) | |||||||||
Add (deduct) the impact of: | |||||||||||
Net temporary store closure costs (a) (b) | — | 2.2 | |||||||||
Head office transition costs (c) (d) | 1.2 | 2.1 | |||||||||
Japan Joint Venture costs (e) | — | 1.4 | |||||||||
Japan Joint Venture remeasurement loss on contingent consideration and put option (f) | 7.1 | — | |||||||||
Strategic initiatives (g) | 7.8 | — | |||||||||
Legal proceeding costs (h) | — | 1.0 | |||||||||
Unrealized foreign exchange gain on Term Loan Facility (i) | (2.2) | (1.5) | |||||||||
Deferred tax adjustment (j) | (0.5) | — | |||||||||
Total adjustments | 13.4 | 5.2 | |||||||||
Tax effect of adjustments | (1.8) | (1.3) | |||||||||
Adjusted net loss | (73.4) | (59.7) | |||||||||
Adjusted net loss attributable to non-controlling interest (k) | 0.3 | 0.9 | |||||||||
Adjusted net loss attributable to shareholders of the Company | (73.1) | (58.8) | |||||||||
Weighted average number of basic shares outstanding | 103,710,762 | 105,234,474 | |||||||||
Adjusted net loss per basic share attributable to shareholders of the Company | $ | (0.70) | $ | (0.56) |
Canada Goose Holdings Inc. | Page 19 of 30 |
Canada Goose Holdings Inc. | Page 20 of 30 |
CAD $ millions | July 2, 2023 |
July 3, 2022 |
$ Change |
April 2, 2023 |
$ Change |
||||||||||||||||||||||||
Current assets | 704.5 | 691.9 | 12.6 | 863.2 | (158.7) | ||||||||||||||||||||||||
Deduct: Cash | (48.0) | (81.8) | 33.8 | (286.5) | 238.5 | ||||||||||||||||||||||||
Current assets, net of cash | 656.5 | 610.1 | 46.4 | 576.7 | 79.8 | ||||||||||||||||||||||||
Current liabilities | 328.2 | 285.7 | 42.5 | 352.4 | (24.2) | ||||||||||||||||||||||||
Deduct the impact of: | |||||||||||||||||||||||||||||
Short-term borrowings | (48.4) | (30.8) | (17.6) | (27.6) | (20.8) | ||||||||||||||||||||||||
Current portion of lease liabilities | (75.3) | (59.9) | (15.4) | (76.1) | 0.8 | ||||||||||||||||||||||||
Current liabilities, net of short-term borrowings and current portion of lease liabilities | 204.5 | 195.0 | 9.5 | 248.7 | (44.2) | ||||||||||||||||||||||||
Net working capital1 |
452.0 | 415.1 | 36.9 | 328.0 | 124.0 |
Canada Goose Holdings Inc. | Page 21 of 30 |
First quarter ended | |||||||||||||||||
CAD $ millions | July 2, 2023 |
July 3, 2022 |
$ Change |
||||||||||||||
Total cash used in: | |||||||||||||||||
Operating activities | (209.3) | (196.9) | (12.4) | ||||||||||||||
Investing activities | (5.7) | (0.9) | (4.8) | ||||||||||||||
Financing activities | (21.0) | (6.3) | (14.7) | ||||||||||||||
Effects of foreign currency exchange rate changes on cash | (2.5) | (1.8) | (0.7) | ||||||||||||||
Decrease in cash | (238.5) | (205.9) | (32.6) | ||||||||||||||
Cash, beginning of period | 286.5 | 287.7 | (1.2) | ||||||||||||||
Cash, end of period | 48.0 | 81.8 | (33.8) | ||||||||||||||
Free operating cash flow1 |
(228.4) | (211.6) | (16.8) |
Canada Goose Holdings Inc. | Page 22 of 30 |
First quarter ended | |||||||||||||||||
CAD $ millions | July 2, 2023 |
July 3, 2022 |
$ Change |
||||||||||||||
Total cash used in: | |||||||||||||||||
Operating activities | (209.3) | (196.9) | (12.4) | ||||||||||||||
Investing activities | (5.7) | (0.9) | (4.8) | ||||||||||||||
Deduct the impact of: | |||||||||||||||||
Principal payments on lease liabilities | (13.4) | (13.8) | 0.4 | ||||||||||||||
Free operating cash flow1 |
(228.4) | (211.6) | (16.8) |
CAD $ millions | July 2, 2023 |
July 3, 2022 |
$ Change |
April 2, 2023 |
$ Change |
||||||||||||||||||||||||
Cash | 48.0 | 81.8 | (33.8) | 286.5 | (238.5) | ||||||||||||||||||||||||
Mainland China Credit Facilities | (22.4) | (4.6) | (17.8) | (9.8) | (12.6) | ||||||||||||||||||||||||
Japan Credit Facility | (22.0) | (23.3) | 1.3 | (13.7) | (8.3) | ||||||||||||||||||||||||
Revolving Credit Facility | — | — | — | — | — | ||||||||||||||||||||||||
Term Loan Facility | (387.6) | (380.7) | (6.9) | (396.3) | 8.7 | ||||||||||||||||||||||||
Lease liabilities | (327.9) | (290.5) | (37.4) | (334.8) | 6.9 | ||||||||||||||||||||||||
Net debt1 |
(711.9) | (617.3) | (94.6) | (468.1) | (243.8) |
Canada Goose Holdings Inc. | Page 23 of 30 |
Canada Goose Holdings Inc. | Page 24 of 30 |
Canada Goose Holdings Inc. | Page 25 of 30 |
Canada Goose Holdings Inc. | Page 26 of 30 |
Canada Goose Holdings Inc. | Page 27 of 30 |
Canada Goose Holdings Inc. | Page 28 of 30 |
Canada Goose Holdings Inc. | Page 29 of 30 |
Canada Goose Holdings Inc. | Page 30 of 30 |
1. | I have reviewed the financial statements and MD&A for the first quarter ended July 2, 2023 of Canada Goose Holdings Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report; |
4. | The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and we have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the company’s most recent fiscal quarter (the company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and |
5. | The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent function): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting. |
By: |
/s/ Dani Reiss | |||||||
Dani Reiss | ||||||||
Chairman and Chief Executive Officer |
1. | I have reviewed the financial statements and MD&A for the first quarter ended July 2, 2023 of Canada Goose Holdings Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report; |
4. | The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and we have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the company’s most recent fiscal quarter (the company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and |
5. | The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent function): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting. |
By: |
/s/ Jonathan Sinclair | |||||||
Jonathan Sinclair | ||||||||
Executive Vice President and Chief Financial Officer |
First quarter ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
CAD $ millions | July 2, 2023 |
July 3, 2022 |
As reported | Foreign exchange impact | In constant currency8 |
As reported | In constant currency8 |
||||||||||||||||||||||||||||||||||
DTC | 55.8 | 34.8 | 21.0 | (2.2) | 18.8 | 60.3 | % | 54.0 | % | ||||||||||||||||||||||||||||||||
Wholesale | 27.1 | 33.2 | (6.1) | (0.2) | (6.3) | (18.4) | % | (19.0) | % | ||||||||||||||||||||||||||||||||
Other | 1.9 | 1.9 | — | — | — | — | % | — | % | ||||||||||||||||||||||||||||||||
Total revenue | 84.8 | 69.9 | 14.9 | (2.4) | 12.5 | 21.3 | % | 17.9 | % |
First quarter ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
CAD $ millions | July 2, 2023 |
July 3, 2022 |
As reported | Foreign exchange impact | In constant currency8 |
As reported | In constant currency8 |
||||||||||||||||||||||||||||||||||
Canada | 23.5 | 17.9 | 5.6 | — | 5.6 | 31.3 | % | 31.3 | % | ||||||||||||||||||||||||||||||||
United States | 18.1 | 15.7 | 2.4 | (1.2) | 1.2 | 15.3 | % | 7.6 | % | ||||||||||||||||||||||||||||||||
North America | 41.6 | 33.6 | 8.0 | (1.2) | 6.8 | 23.8 | % | 20.2 | % | ||||||||||||||||||||||||||||||||
Asia Pacific | 24.5 | 16.1 | 8.4 | (1.5) | 6.9 | 52.2 | % | 42.9 | % | ||||||||||||||||||||||||||||||||
EMEA | 18.7 | 20.2 | (1.5) | 0.3 | (1.2) | (7.4) | % | (5.9) | % | ||||||||||||||||||||||||||||||||
Total revenue | 84.8 | 69.9 | 14.9 | (2.4) | 12.5 | 21.3 | % | 17.9 | % |
First quarter ended | ||||||||
July 2, 2023 |
July 3, 2022 |
|||||||
Reclassified | ||||||||
$ | $ | |||||||
Revenue | 84.8 | 69.9 | ||||||
Cost of sales | 29.6 | 27.2 | ||||||
Gross profit | 55.2 | 42.7 | ||||||
Selling, general & administrative expenses | 154.9 | 124.9 | ||||||
Operating loss | (99.7) | (82.2) | ||||||
Net interest, finance and other costs | 14.5 | 5.9 | ||||||
Loss before income taxes | (114.2) | (88.1) | ||||||
Income tax recovery | (29.2) | (24.5) | ||||||
Net loss | (85.0) | (63.6) | ||||||
Attributable to: | ||||||||
Shareholders of the Company | (81.1) | (62.4) | ||||||
Non-controlling interest | (3.9) | (1.2) | ||||||
Net loss | (85.0) | (63.6) | ||||||
Loss per share attributable to shareholders of the Company | ||||||||
Basic and diluted | $ | (0.78) | $ | (0.59) | ||||
July 2, 2023 |
July 3, 2022 |
April 2, 2023 |
|||||||||
Assets | $ | $ | $ | ||||||||
Current assets | |||||||||||
Cash | 48.0 | 81.8 | 286.5 | ||||||||
Trade receivables | 50.9 | 48.2 | 50.9 | ||||||||
Inventories | 522.1 | 504.7 | 472.6 | ||||||||
Income taxes receivable | 6.6 | 4.8 | 0.9 | ||||||||
Other current assets | 76.9 | 52.4 | 52.3 | ||||||||
Total current assets | 704.5 | 691.9 | 863.2 | ||||||||
Deferred income taxes | 92.5 | 73.9 | 67.5 | ||||||||
Property, plant and equipment | 172.0 | 110.5 | 156.0 | ||||||||
Intangible assets | 133.1 | 134.7 | 135.1 | ||||||||
Right-of-use assets | 281.3 | 253.2 | 291.8 | ||||||||
Goodwill | 62.8 | 64.7 | 63.9 | ||||||||
Other long-term assets | 12.3 | 17.8 | 12.5 | ||||||||
Total assets | 1,458.5 | 1,346.7 | 1,590.0 | ||||||||
Liabilities | |||||||||||
Current liabilities | |||||||||||
Accounts payable and accrued liabilities | 178.6 | 165.6 | 195.6 | ||||||||
Provisions | 16.3 | 16.2 | 21.6 | ||||||||
Income taxes payable | 9.6 | 13.2 | 31.5 | ||||||||
Short-term borrowings | 48.4 | 30.8 | 27.6 | ||||||||
Current portion of lease liabilities | 75.3 | 59.9 | 76.1 | ||||||||
Total current liabilities | 328.2 | 285.7 | 352.4 | ||||||||
Provisions | 34.2 | 30.2 | 36.5 | ||||||||
Deferred income taxes | 12.3 | 18.3 | 16.4 | ||||||||
Term loan | 383.0 | 377.1 | 391.6 | ||||||||
Lease liabilities | 252.6 | 230.6 | 258.7 | ||||||||
Other long-term liabilities | 62.6 | 52.9 | 56.9 | ||||||||
Total liabilities | 1,072.9 | 994.8 | 1,112.5 | ||||||||
Equity | |||||||||||
Equity attributable to shareholders of the Company | 381.9 | 342.4 | 469.5 | ||||||||
Non-controlling interests | 3.7 | 9.5 | 8.0 | ||||||||
Total equity | 385.6 | 351.9 | 477.5 | ||||||||
Total liabilities and equity | 1,458.5 | 1,346.7 | 1,590.0 |
First quarter ended | ||||||||
July 2, 2023 |
July 3, 2022 |
|||||||
$ | $ | |||||||
Operating activities | ||||||||
Net loss | (85.0) | (63.6) | ||||||
Items not affecting cash: | ||||||||
Depreciation and amortization | 29.2 | 25.8 | ||||||
Income tax recovery | (29.2) | (24.5) | ||||||
Interest expense | 7.4 | 7.0 | ||||||
Foreign exchange (gain) loss | (4.7) | 2.1 | ||||||
Gain on disposal of assets | (0.1) | — | ||||||
Share-based payment | 2.5 | 2.7 | ||||||
Remeasurement of put option | 8.1 | — | ||||||
Remeasurement of contingent consideration | (1.0) | — | ||||||
(72.8) | (50.5) | |||||||
Changes in non-cash operating items | (98.9) | (123.5) | ||||||
Income taxes paid | (30.1) | (16.2) | ||||||
Interest paid | (7.5) | (6.7) | ||||||
Net cash used in operating activities | (209.3) | (196.9) | ||||||
Investing activities | ||||||||
Purchase of property, plant and equipment | (5.2) | (2.5) | ||||||
Investment in intangible assets | (0.2) | (1.1) | ||||||
Initial direct costs of right-of-use assets | (0.3) | (0.1) | ||||||
Net cash inflow from business combination | — | 2.8 | ||||||
Net cash used in investing activities | (5.7) | (0.9) | ||||||
Financing activities | ||||||||
Mainland China Facilities borrowings | 12.6 | 4.6 | ||||||
Japan Facility borrowings | 8.3 | 3.9 | ||||||
Term loan repayments | (1.0) | (1.0) | ||||||
Subordinate voting shares purchased and cancelled under NCIB | (27.5) | — | ||||||
Principal payments on lease liabilities | (13.4) | (13.8) | ||||||
Net cash used in financing activities | (21.0) | (6.3) | ||||||
Effects of foreign currency exchange rate changes on cash | (2.5) | (1.8) | ||||||
Decrease in cash | (238.5) | (205.9) | ||||||
Cash, beginning of period | 286.5 | 287.7 | ||||||
Cash, end of period | 48.0 | 81.8 |
First quarter ended | |||||||||||
CAD $ millions | July 2, 2023 |
July 3, 2022 |
|||||||||
Net loss | (85.0) | (63.6) | |||||||||
Add (deduct) the impact of: | |||||||||||
Income tax recovery | (29.2) | (24.5) | |||||||||
Net interest, finance and other costs | 14.5 | 5.9 | |||||||||
Operating loss | (99.7) | (82.2) | |||||||||
Net temporary store closure costs (a) | — | 2.2 | |||||||||
Head office transition costs (c) | 0.8 | 1.7 | |||||||||
Japan Joint Venture costs (e) | — | 1.4 | |||||||||
Strategic initiatives (g) | 7.8 | — | |||||||||
Legal proceeding costs (h) | — | 1.0 | |||||||||
Total adjustments | 8.6 | 6.3 | |||||||||
Adjusted EBIT | (91.1) | (75.9) | |||||||||
Adjusted EBIT margin | (107.4) | % | (108.6) | % | |||||||
First quarter ended | |||||||||||
CAD $ millions | July 2, 2023 |
July 3, 2022 |
|||||||||
Net loss | (85.0) | (63.6) | |||||||||
Add (deduct) the impact of: | |||||||||||
Net temporary store closure costs (a) (b) | — | 2.2 | |||||||||
Head office transition costs (c) (d) | 1.2 | 2.1 | |||||||||
Japan Joint Venture costs (e) | — | 1.4 | |||||||||
Japan Joint Venture remeasurement loss on contingent consideration and put option (f) | 7.1 | — | |||||||||
Strategic initiatives (g) | 7.8 | — | |||||||||
Legal proceeding costs (h) | — | 1.0 | |||||||||
Unrealized foreign exchange gain on Term Loan Facility (i) | (2.2) | (1.5) | |||||||||
Deferred tax adjustment (j) | (0.5) | — | |||||||||
Total adjustments | 13.4 | 5.2 | |||||||||
Tax effect of adjustments | (1.8) | (1.3) | |||||||||
Adjusted net loss | (73.4) | (59.7) | |||||||||
Adjusted net loss attributable to non-controlling interest (k) | 0.3 | 0.9 | |||||||||
Adjusted net loss attributable to shareholders of the Company | (73.1) | (58.8) | |||||||||
Weighted average number of basic shares outstanding | 103,710,762 | 105,234,474 | |||||||||
Adjusted net loss per basic share attributable to shareholders of the Company | $ | (0.70) | $ | (0.56) |