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: February 1, 2024 |
Third quarter ended | Three quarters ended | |||||||||||||||||||
Notes | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
||||||||||||||||
Reclassified | Reclassified | |||||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||
Revenue | 4 | 609.9 | 576.7 | 975.8 | 923.8 | |||||||||||||||
Cost of sales | 7 | 160.2 | 160.3 | 291.4 | 298.9 | |||||||||||||||
Gross profit | 449.7 | 416.4 | 684.4 | 624.9 | ||||||||||||||||
Selling, general & administrative expenses | 250.9 | 225.7 | 583.0 | 494.9 | ||||||||||||||||
Operating income | 198.8 | 190.7 | 101.4 | 130.0 | ||||||||||||||||
Net interest, finance and other costs | 11 | 14.8 | 2.4 | 42.9 | 31.9 | |||||||||||||||
Income before income taxes | 184.0 | 188.3 | 58.5 | 98.1 | ||||||||||||||||
Income tax expense | 52.6 | 50.8 | 8.0 | 19.2 | ||||||||||||||||
Net income | 131.4 | 137.5 | 50.5 | 78.9 | ||||||||||||||||
Attributable to: | ||||||||||||||||||||
Shareholders of the Company | 130.6 | 134.9 | 53.4 | 75.8 | ||||||||||||||||
Non-controlling interest | 0.8 | 2.6 | (2.9) | 3.1 | ||||||||||||||||
Net income | 131.4 | 137.5 | 50.5 | 78.9 | ||||||||||||||||
Earnings per share attributable to shareholders of the Company | ||||||||||||||||||||
Basic | 5 | $ | 1.30 | $ | 1.28 | $ | 0.52 | $ | 0.72 | |||||||||||
Diluted | 5 | $ | 1.29 | $ | 1.28 | $ | 0.52 | $ | 0.72 |
Canada Goose Holdings Inc. | Page 1 of 35 |
Third quarter ended | Three quarters ended | |||||||||||||||||||
Notes | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||
Net income | 131.4 | 137.5 | 50.5 | 78.9 | ||||||||||||||||
Other comprehensive (loss) income | ||||||||||||||||||||
Items that will not be reclassified to earnings, net of tax: | ||||||||||||||||||||
Actuarial (loss) gain on post-employment obligation | (0.1) | — | (0.3) | 1.0 | ||||||||||||||||
Items that may be reclassified to earnings, net of tax: | ||||||||||||||||||||
Cumulative translation adjustment gain | 6.7 | 22.5 | 0.2 | 10.7 | ||||||||||||||||
Net (loss) gain on derivatives designated as cash flow hedges | 16 | (7.5) | (4.6) | (1.5) | 4.5 | |||||||||||||||
Reclassification of net loss (gain) on cash flow hedges to income | 16 | 0.1 | 3.4 | (0.9) | 4.9 | |||||||||||||||
Other comprehensive (loss) income | (0.8) | 21.3 | (2.5) | 21.1 | ||||||||||||||||
Comprehensive income | 130.6 | 158.8 | 48.0 | 100.0 | ||||||||||||||||
Attributable to: | ||||||||||||||||||||
Shareholders of the Company | 129.7 | 156.6 | 51.6 | 96.9 | ||||||||||||||||
Non-controlling interest | 0.9 | 2.2 | (3.6) | 3.1 | ||||||||||||||||
Comprehensive income | 130.6 | 158.8 | 48.0 | 100.0 |
Canada Goose Holdings Inc. | Page 2 of 35 |
Notes | December 31, 2023 |
January 1, 2023 |
April 2, 2023 |
|||||||||||
Assets | $ | $ | $ | |||||||||||
Current assets | ||||||||||||||
Cash | 154.3 | 344.2 | 286.5 | |||||||||||
Trade receivables | 3, 6 | 144.5 | 120.9 | 50.9 | ||||||||||
Inventories | 3, 7 | 478.4 | 482.0 | 472.6 | ||||||||||
Income taxes receivable | 8.1 | 5.7 | 0.9 | |||||||||||
Other current assets | 15 | 61.0 | 58.3 | 52.3 | ||||||||||
Total current assets | 846.3 | 1,011.1 | 863.2 | |||||||||||
Deferred income taxes | 90.3 | 67.7 | 67.5 | |||||||||||
Property, plant and equipment | 3 | 177.2 | 128.5 | 156.0 | ||||||||||
Intangible assets | 132.1 | 132.9 | 135.1 | |||||||||||
Right-of-use assets | 3, 8 | 272.7 | 275.6 | 291.8 | ||||||||||
Goodwill | 3 | 76.5 | 65.0 | 63.9 | ||||||||||
Other long-term assets | 15 | 6.8 | 22.2 | 12.5 | ||||||||||
Total assets | 1,601.9 | 1,703.0 | 1,590.0 | |||||||||||
Liabilities | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable and accrued liabilities | 3, 9, 15 | 268.8 | 262.0 | 195.6 | ||||||||||
Provisions | 10 | 55.0 | 46.6 | 21.6 | ||||||||||
Income taxes payable | 14.5 | 31.8 | 31.5 | |||||||||||
Short-term borrowings | 11 | 38.7 | 52.4 | 27.6 | ||||||||||
Current portion of lease liabilities | 3, 8 | 76.4 | 66.6 | 76.1 | ||||||||||
Total current liabilities | 453.4 | 459.4 | 352.4 | |||||||||||
Provisions | 10 | 37.2 | 36.7 | 36.5 | ||||||||||
Deferred income taxes | 13.6 | 22.2 | 16.4 | |||||||||||
Revolving Facility | 11 | — | — | — | ||||||||||
Term Loan | 11 | 381.0 | 393.4 | 391.6 | ||||||||||
Lease liabilities | 3, 8 | 244.9 | 250.3 | 258.7 | ||||||||||
Other long-term liabilities | 15 | 70.9 | 42.9 | 56.9 | ||||||||||
Total liabilities | 1,201.0 | 1,204.9 | 1,112.5 | |||||||||||
Equity | 12 | |||||||||||||
Equity attributable to shareholders of the Company | 396.5 | 484.1 | 469.5 | |||||||||||
Non-controlling interests | 4.4 | 14.0 | 8.0 | |||||||||||
Total equity | 400.9 | 498.1 | 477.5 | |||||||||||
Total liabilities and equity | 1,601.9 | 1,703.0 | 1,590.0 |
Canada Goose Holdings Inc. | Page 3 of 35 |
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 | 12 | — | (13.6) | (13.6) | — | (96.9) | — | (110.5) | — | (110.5) | ||||||||||||||||||||||
Normal course issuer bid purchase of subordinate voting shares held for cancellation | 12 | — | (0.3) | (0.3) | — | (2.0) | — | (2.3) | — | (2.3) | ||||||||||||||||||||||
Liability to broker under automatic share purchase plan | 12 | — | — | — | (23.1) | — | — | (23.1) | — | (23.1) | ||||||||||||||||||||||
Issuance of shares | 12 | — | 4.0 | 4.0 | (3.9) | — | — | 0.1 | — | 0.1 | ||||||||||||||||||||||
Net income (loss) | — | — | — | — | 53.4 | — | 53.4 | (2.9) | 50.5 | |||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (1.8) | (1.8) | (0.7) | (2.5) | |||||||||||||||||||||||
Share-based payment | 13 | — | — | — | 11.2 | — | — | 11.2 | — | 11.2 | ||||||||||||||||||||||
Balance at December 31, 2023 | 1.4 | 107.4 | 108.8 | 12.7 | 271.0 | 4.0 | 396.5 | 4.4 | 400.9 | |||||||||||||||||||||||
Balance at April 3, 2022 | 1.4 | 117.1 | 118.5 | 36.2 | 290.4 | (17.2) | 427.9 | — | 427.9 | |||||||||||||||||||||||
Non-controlling interest on business combination | — | — | — | — | — | — | — | 10.9 | 10.9 | |||||||||||||||||||||||
Put option for non-controlling interest | — | — | — | — | (21.5) | — | (21.5) | — | (21.5) | |||||||||||||||||||||||
Normal course issuer bid purchase of subordinate voting shares | 12 | — | (1.5) | (1.5) | — | (14.6) | — | (16.1) | — | (16.1) | ||||||||||||||||||||||
Normal course issuer bid purchase of subordinate voting shares held for cancellation | 12 | — | (0.2) | (0.2) | — | (1.6) | — | (1.8) | — | (1.8) | ||||||||||||||||||||||
Liability to broker under automatic share purchase plan | 12 | — | — | — | (12.5) | — | — | (12.5) | — | (12.5) | ||||||||||||||||||||||
Issuance of shares | 12 | — | 2.7 | 2.7 | (2.7) | — | — | — | — | — | ||||||||||||||||||||||
Net income | — | — | — | — | 75.8 | — | 75.8 | 3.1 | 78.9 | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 21.1 | 21.1 | — | 21.1 | |||||||||||||||||||||||
Share-based payment | 13 | — | — | — | 11.2 | — | — | 11.2 | — | 11.2 | ||||||||||||||||||||||
Balance at January 1, 2023 | 1.4 | 118.1 | 119.5 | 32.2 | 328.5 | 3.9 | 484.1 | 14.0 | 498.1 |
Canada Goose Holdings Inc. | Page 4 of 35 |
Third quarter ended | Three quarters ended | |||||||||||||||||||
Notes | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||
Operating activities | ||||||||||||||||||||
Net income | 131.4 | 137.5 | 50.5 | 78.9 | ||||||||||||||||
Items not affecting cash: | ||||||||||||||||||||
Depreciation and amortization | 32.2 | 27.0 | 92.0 | 79.2 | ||||||||||||||||
Income tax expense | 52.6 | 50.8 | 8.0 | 19.2 | ||||||||||||||||
Interest expense | 11 | 11.8 | 8.7 | 32.1 | 24.9 | |||||||||||||||
Foreign exchange (gain) loss | (1.4) | (14.9) | (1.9) | 4.3 | ||||||||||||||||
Loss (gain) on disposal of assets | 0.1 | — | 0.1 | (0.1) | ||||||||||||||||
Share-based payment | 13 | 4.3 | 4.2 | 11.5 | 11.2 | |||||||||||||||
Remeasurement of put option | 15 | 4.9 | (0.5) | 15.7 | 1.2 | |||||||||||||||
Remeasurement of contingent consideration | 15 | (1.9) | (2.2) | (4.9) | (5.9) | |||||||||||||||
234.0 | 210.6 | 203.1 | 212.9 | |||||||||||||||||
Changes in non-cash operating items | 17 | 134.0 | 154.6 | (32.2) | (48.1) | |||||||||||||||
Income taxes paid | (7.6) | (5.6) | (56.6) | (31.9) | ||||||||||||||||
Interest paid | (12.1) | (8.6) | (32.5) | (23.6) | ||||||||||||||||
Net cash from operating activities | 348.3 | 351.0 | 81.8 | 109.3 | ||||||||||||||||
Investing activities | ||||||||||||||||||||
Purchase of property, plant and equipment | (15.1) | (12.6) | (46.3) | (22.9) | ||||||||||||||||
Investment in intangible assets | (0.2) | (0.2) | (0.7) | (0.9) | ||||||||||||||||
Initial direct costs of right-of-use assets | 8 | — | — | (0.4) | (0.4) | |||||||||||||||
Net cash (outlfow) inflow from business combination | 3 | (12.3) | — | (12.3) | 2.8 | |||||||||||||||
Net cash used in investing activities | (27.6) | (12.8) | (59.7) | (21.4) | ||||||||||||||||
Financing activities | ||||||||||||||||||||
Mainland China Facilities (repayments) borrowings | 11 | (38.2) | (8.4) | (0.5) | 15.7 | |||||||||||||||
Japan Facility (repayments) borrowings | 11 | (3.7) | 3.4 | 11.7 | 13.1 | |||||||||||||||
Term Loan repayments | 11 | (1.0) | (1.0) | (3.0) | (3.0) | |||||||||||||||
Revolving Facility repayments | 11 | (86.3) | (55.9) | — | (0.5) | |||||||||||||||
Transaction costs on financing activities | 11 | 0.1 | — | (0.2) | — | |||||||||||||||
Normal course issuer bid purchase of subordinate voting shares | 12 | (54.3) | (16.1) | (111.7) | (16.1) | |||||||||||||||
Principal payments on lease liabilities | 8 | (21.0) | (17.2) | (49.7) | (44.5) | |||||||||||||||
Issuance of shares | 13 | — | — | 0.1 | — | |||||||||||||||
Net cash used in financing activities | (204.4) | (95.2) | (153.3) | (35.3) | ||||||||||||||||
Effects of foreign currency exchange rate changes on cash | 0.5 | 4.1 | (1.0) | 3.9 | ||||||||||||||||
Increase (decrease) in cash | 116.8 | 247.1 | (132.2) | 56.5 | ||||||||||||||||
Cash, beginning of period | 37.5 | 97.1 | 286.5 | 287.7 | ||||||||||||||||
Cash, end of period | 154.3 | 344.2 | 154.3 | 344.2 |
Canada Goose Holdings Inc. | Page 5 of 35 |
Canada Goose Holdings Inc. | Page 6 of 35 |
Canada Goose Holdings Inc. | Page 7 of 35 |
Canada Goose Holdings Inc. | Page 8 of 35 |
$ | |||||
Assets acquired | |||||
Trade receivables | 7.1 | ||||
Inventories | 1.6 | ||||
Property, plant and equipment | 2.6 | ||||
Right-of-use assets | 1.2 | ||||
Goodwill | 13.5 | ||||
Accounts payable and accrued liabilities | (8.4) | ||||
Lease liability | (1.2) | ||||
Total assets acquired, net of liabilities assumed | 16.4 |
Canada Goose Holdings Inc. | Page 9 of 35 |
Third quarter ended December 31, 2023 | ||||||||||||||
(in millions of Canadian dollars) | DTC | Wholesale | Other | Total | ||||||||||
$ | $ | $ | $ | |||||||||||
Revenue | 514.0 | 81.8 | 14.1 | 609.9 | ||||||||||
Cost of sales | 110.4 | 38.1 | 11.7 | 160.2 | ||||||||||
Gross profit | 403.6 | 43.7 | 2.4 | 449.7 | ||||||||||
SG&A expenses | 116.5 | 17.8 | 116.6 | 250.9 | ||||||||||
Operating income (loss) | 287.1 | 25.9 | (114.2) | 198.8 | ||||||||||
Net interest, finance and other costs | 14.8 | |||||||||||||
Income before income taxes | 184.0 | |||||||||||||
Third quarter ended January 1, 2023 | ||||||||||||||
(in millions of Canadian dollars) | DTC | Wholesale | Other | Total | ||||||||||
$ | $ | $ | $ | |||||||||||
Revenue | 450.2 | 114.4 | 12.1 | 576.7 | ||||||||||
Cost of sales | 99.1 | 53.8 | 7.4 | 160.3 | ||||||||||
Gross profit | 351.1 | 60.6 | 4.7 | 416.4 | ||||||||||
SG&A expenses (reclassified)1 |
92.3 | 21.8 | 111.6 | 225.7 | ||||||||||
Operating income (loss) (reclassified) | 258.8 | 38.8 | (106.9) | 190.7 | ||||||||||
Net interest, finance and other costs (reclassified) | 2.4 | |||||||||||||
Income before income taxes | 188.3 |
Canada Goose Holdings Inc. | Page 10 of 35 |
Three quarters ended December 31, 2023 | ||||||||||||||
(in millions of Canadian dollars) | DTC | Wholesale | Other | Total | ||||||||||
$ | $ | $ | $ | |||||||||||
Revenue | 679.2 | 270.9 | 25.7 | 975.8 | ||||||||||
Cost of sales | 151.2 | 120.7 | 19.5 | 291.4 | ||||||||||
Gross profit | 528.0 | 150.2 | 6.2 | 684.4 | ||||||||||
SG&A expenses | 234.6 | 51.2 | 297.2 | 583.0 | ||||||||||
Operating income (loss) | 293.4 | 99.0 | (291.0) | 101.4 | ||||||||||
Net interest, finance and other costs | 42.9 | |||||||||||||
Income before income taxes | 58.5 | |||||||||||||
Three quarters ended January 1, 2023 | ||||||||||||||
(in millions of Canadian dollars) | DTC | Wholesale | Other | Total | ||||||||||
$ | $ | $ | $ | |||||||||||
Revenue | 579.8 | 328.3 | 15.7 | 923.8 | ||||||||||
Cost of sales | 130.4 | 158.8 | 9.7 | 298.9 | ||||||||||
Gross profit | 449.4 | 169.5 | 6.0 | 624.9 | ||||||||||
SG&A expenses (reclassified)1 |
184.0 | 51.0 | 259.9 | 494.9 | ||||||||||
Operating income (loss) (reclassified) | 265.4 | 118.5 | (253.9) | 130.0 | ||||||||||
Net interest, finance and other costs (reclassified) | 31.9 | |||||||||||||
Income before income taxes | 98.1 |
Third quarter ended | Three quarters ended | ||||||||||||||||
(in millions of Canadian dollars) | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
|||||||||||||
$ | $ | $ | $ | ||||||||||||||
Canada | 94.9 | 109.2 | 176.3 | 185.8 | |||||||||||||
United States | 157.5 | 182.8 | 241.8 | 272.7 | |||||||||||||
North America | 252.4 | 292.0 | 418.1 | 458.5 | |||||||||||||
Asia Pacific | 270.7 | 167.6 | 359.0 | 240.1 | |||||||||||||
EMEA1 |
86.8 | 117.1 | 198.7 | 225.2 | |||||||||||||
Revenue | 609.9 | 576.7 | 975.8 | 923.8 |
Canada Goose Holdings Inc. | Page 11 of 35 |
Third quarter ended | Three quarters ended | ||||||||||||||||
(in millions of Canadian dollars, except share and per share amounts) | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
|||||||||||||
Net income attributable to shareholders of the Company | $ | 130.6 | $ | 134.9 | $ | 53.4 | $ | 75.8 | |||||||||
Weighted average number of multiple and subordinate voting shares outstanding | 100,253,473 | 105,146,788 | 102,144,232 | 105,238,509 | |||||||||||||
Weighted average number of shares on exercise of stock options, RSUs and PSUs1 |
1,055,363 | 521,820 | 981,133 | 539,842 | |||||||||||||
Diluted weighted average number of multiple and subordinate voting shares outstanding | 101,308,836 | 105,668,608 | 103,125,365 | 105,778,351 | |||||||||||||
Earnings per share attributable to shareholders of the Company | |||||||||||||||||
Basic | $ | 1.30 | $ | 1.28 | $ | 0.52 | $ | 0.72 | |||||||||
Diluted | $ | 1.29 | $ | 1.28 | $ | 0.52 | $ | 0.72 |
(in millions of Canadian dollars) | December 31, 2023 |
January 1, 2023 |
April 2, 2023 |
||||||||
$ | $ | $ | |||||||||
Trade accounts receivable | 129.4 | 103.3 | 30.4 | ||||||||
Credit card receivables | 7.5 | 5.8 | 2.5 | ||||||||
Other receivables | 9.3 | 13.5 | 19.5 | ||||||||
146.2 | 122.6 | 52.4 | |||||||||
Less: expected credit loss and sales allowances | (1.7) | (1.7) | (1.5) | ||||||||
Trade receivables | 144.5 | 120.9 | 50.9 |
Canada Goose Holdings Inc. | Page 12 of 35 |
(in millions of Canadian dollars) | December 31, 2023 |
January 1, 2023 |
April 2, 2023 |
||||||||
$ | $ | $ | |||||||||
Raw materials | 48.9 | 71.3 | 60.3 | ||||||||
Work in progress | 23.0 | 15.4 | 17.5 | ||||||||
Finished goods | 406.5 | 395.3 | 394.8 | ||||||||
Total inventories at the lower of cost and net realizable value | 478.4 | 482.0 | 472.6 |
(in millions of Canadian dollars) | December 31, 2023 |
January 1, 2023 |
April 2, 2023 |
||||||||
$ | $ | $ | |||||||||
Raw material shrink reserves | 0.2 | — | 0.2 | ||||||||
Finished goods shrink reserves | 0.9 | 0.8 | 0.4 | ||||||||
Raw material obsolete inventory reserves | 21.4 | 12.9 | 20.5 | ||||||||
Finished goods obsolete inventory reserves | 28.5 | 19.0 | 22.1 | ||||||||
Provision for obsolescence | 51.0 | 32.7 | 43.2 |
Third quarter ended | Three quarters ended | ||||||||||||||||
(in millions of Canadian dollars) | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
|||||||||||||
$ | $ | $ | $ | ||||||||||||||
Cost of goods manufactured | 157.2 | 157.9 | 282.9 | 291.8 | |||||||||||||
Depreciation and amortization | 3.0 | 2.4 | 8.5 | 7.1 | |||||||||||||
160.2 | 160.3 | 291.4 | 298.9 |
Canada Goose Holdings Inc. | Page 13 of 35 |
(in millions of Canadian dollars) | Retail stores | Manufacturing facilities | Other | Total | ||||||||||
Cost | $ | $ | $ | $ | ||||||||||
April 2, 2023 | 396.7 | 44.9 | 58.4 | 500.0 | ||||||||||
Additions | 25.6 | — | 2.6 | 28.2 | ||||||||||
Additions from business combinations (note 3) | — | 1.2 | — | 1.2 | ||||||||||
Lease modifications | 9.8 | 0.1 | 1.5 | 11.4 | ||||||||||
Derecognition on termination | (4.0) | — | (1.8) | (5.8) | ||||||||||
Impact of foreign currency translation | (6.4) | — | (0.4) | (6.8) | ||||||||||
December 31, 2023 | 421.7 | 46.2 | 60.3 | 528.2 | ||||||||||
April 3, 2022 | 296.3 | 36.7 | 17.4 | 350.4 | ||||||||||
Additions | 46.5 | 6.2 | 42.3 | 95.0 | ||||||||||
Additions from business combinations | 1.5 | — | 1.8 | 3.3 | ||||||||||
Lease modifications | 2.4 | — | — | 2.4 | ||||||||||
Derecognition on termination | (1.8) | — | — | (1.8) | ||||||||||
Impact of foreign currency translation | 14.6 | — | 0.7 | 15.3 | ||||||||||
January 1, 2023 | 359.5 | 42.9 | 62.2 | 464.6 |
Canada Goose Holdings Inc. | Page 14 of 35 |
(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 | 46.7 | 4.2 | 5.2 | 56.1 | ||||||||||
Derecognition on termination | (4.0) | — | (1.8) | (5.8) | ||||||||||
Impact of foreign currency translation | (2.8) | — | (0.2) | (3.0) | ||||||||||
December 31, 2023 | 211.0 | 24.8 | 19.7 | 255.5 | ||||||||||
April 3, 2022 | 110.1 | 15.2 | 9.9 | 135.2 | ||||||||||
Depreciation | 40.3 | 3.7 | 5.2 | 49.2 | ||||||||||
Derecognition on termination | (1.2) | — | — | (1.2) | ||||||||||
Impact of foreign currency translation | 5.4 | — | 0.4 | 5.8 | ||||||||||
January 1, 2023 | 154.6 | 18.9 | 15.5 | 189.0 | ||||||||||
Net book value | ||||||||||||||
December 31, 2023 | 210.7 | 21.4 | 40.6 | 272.7 | ||||||||||
January 1, 2023 | 204.9 | 24.0 | 46.7 | 275.6 | ||||||||||
April 2, 2023 | 225.6 | 24.3 | 41.9 | 291.8 |
Canada Goose Holdings Inc. | Page 15 of 35 |
(in millions of Canadian dollars) | Retail stores | Manufacturing facilities | Other | Total | ||||||||||
$ | $ | $ | $ | |||||||||||
April 2, 2023 | 259.2 | 27.7 | 47.9 | 334.8 | ||||||||||
Additions | 25.5 | — | 2.3 | 27.8 | ||||||||||
Additions from business combinations (note 3) | — | 1.2 | — | 1.2 | ||||||||||
Lease modifications | 9.8 | 0.1 | 1.5 | 11.4 | ||||||||||
Principal payments | (46.0) | (4.0) | 0.3 | (49.7) | ||||||||||
Impact of foreign currency translation | (4.1) | — | (0.1) | (4.2) | ||||||||||
December 31, 2023 | 244.4 | 25.0 | 51.9 | 321.3 | ||||||||||
April 3, 2022 | 217.2 | 24.8 | 8.7 | 250.7 | ||||||||||
Additions | 46.1 | 6.2 | 42.3 | 94.6 | ||||||||||
Additions from business combinations | 1.5 | — | 1.7 | 3.2 | ||||||||||
Lease modifications | 2.4 | — | — | 2.4 | ||||||||||
Derecognition on termination | (0.7) | — | — | (0.7) | ||||||||||
Principal payments | (38.8) | (3.9) | (1.8) | (44.5) | ||||||||||
Impact of foreign currency translation | 10.8 | — | 0.4 | 11.2 | ||||||||||
January 1, 2023 | 238.5 | 27.1 | 51.3 | 316.9 |
(in millions of Canadian dollars) | Retail stores | Manufacturing facilities | Other | Total | ||||||||||
$ | $ | $ | $ | |||||||||||
Current lease liabilities | 62.8 | 6.3 | 7.3 | 76.4 | ||||||||||
Non-current lease liabilities | 181.6 | 18.7 | 44.6 | 244.9 | ||||||||||
December 31, 2023 | 244.4 | 25.0 | 51.9 | 321.3 | ||||||||||
Current lease liabilities | 56.1 | 5.7 | 4.8 | 66.6 | ||||||||||
Non-current lease liabilities | 182.4 | 21.4 | 46.5 | 250.3 | ||||||||||
January 1, 2023 | 238.5 | 27.1 | 51.3 | 316.9 | ||||||||||
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 16 of 35 |
(in millions of Canadian dollars) | December 31, 2023 |
January 1, 2023 |
April 2, 2023 |
||||||||
$ | $ | $ | |||||||||
Trade payables | 60.0 | 72.7 | 60.1 | ||||||||
Accrued liabilities | 107.9 | 119.0 | 82.4 | ||||||||
Employee benefits | 34.4 | 24.1 | 21.9 | ||||||||
Derivative financial instruments | 3.8 | 7.4 | 3.3 | ||||||||
ASPP liability (note 12) | 43.1 | — | 20.0 | ||||||||
Other payables | 19.6 | 38.8 | 7.9 | ||||||||
Accounts payable and accrued liabilities | 268.8 | 262.0 | 195.6 |
(in millions of Canadian dollars) | Warranty | Sales returns | Asset retirement obligations | Total | ||||||||||
$ | $ | $ | $ | |||||||||||
Current provisions | 7.3 | 47.7 | — | 55.0 | ||||||||||
Non-current provisions | 23.3 | — | 13.9 | 37.2 | ||||||||||
December 31, 2023 | 30.6 | 47.7 | 13.9 | 92.2 | ||||||||||
Current provisions | 6.0 | 40.6 | — | 46.6 | ||||||||||
Non-current provisions | 27.0 | — | 9.7 | 36.7 | ||||||||||
January 1, 2023 | 33.0 | 40.6 | 9.7 | 83.3 | ||||||||||
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 17 of 35 |
Canada Goose Holdings Inc. | Page 18 of 35 |
(in millions of Canadian dollars) | December 31, 2023 |
January 1, 2023 |
April 2, 2023 |
||||||||
$ | $ | $ | |||||||||
Term Loan | 385.7 | 398.2 | 396.3 | ||||||||
Unamortized portion of deferred transaction costs | (0.7) | (0.7) | (0.6) | ||||||||
Term Loan, net of unamortized deferred transaction costs | 385.0 | 397.5 | 395.7 |
Canada Goose Holdings Inc. | Page 19 of 35 |
Third quarter ended | Three quarters ended | ||||||||||||||||
(in millions of Canadian dollars) | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
|||||||||||||
Reclassified | Reclassified | ||||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Interest expense | |||||||||||||||||
Mainland China Facilities | 0.4 | 0.3 | 0.8 | 0.5 | |||||||||||||
Japan Facility | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||
Revolving Facility | 1.3 | 0.1 | 2.8 | 0.9 | |||||||||||||
Term Loan | 4.8 | 4.9 | 14.8 | 13.8 | |||||||||||||
Lease liabilities | 4.2 | 2.8 | 12.8 | 8.2 | |||||||||||||
Standby fees | 0.3 | 0.5 | 0.9 | 1.4 | |||||||||||||
Foreign exchange losses (gains) on Term Loan net of hedges | 0.5 | (3.6) | — | 11.7 | |||||||||||||
Fair value remeasurement on the put option liability (note 15) | 4.9 | (0.5) | 15.7 | 1.2 | |||||||||||||
Fair value remeasurement on the contingent consideration (note 15) | (1.9) | (2.2) | (4.9) | (5.9) | |||||||||||||
Interest income | (0.1) | (0.2) | (0.9) | (0.4) | |||||||||||||
Other costs | 0.3 | 0.2 | 0.8 | 0.4 | |||||||||||||
Net interest, finance and other costs | 14.8 | 2.4 | 42.9 | 31.9 |
Canada Goose Holdings Inc. | Page 20 of 35 |
Canada Goose Holdings Inc. | Page 21 of 35 |
(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 | — | — | (5,987,741) | (13.6) | (5,987,741) | (13.6) | ||||||||||||||||||||
Purchase of subordinate voting shares held for cancellation | — | — | (143,692) | (0.3) | (143,692) | (0.3) | ||||||||||||||||||||
Total share purchases | — | — | (6,131,433) | (13.9) | (6,131,433) | (13.9) | ||||||||||||||||||||
Exercise of stock options | — | — | 36,350 | 0.2 | 36,350 | 0.2 | ||||||||||||||||||||
Settlement of RSUs | — | — | 134,475 | 3.8 | 134,475 | 3.8 | ||||||||||||||||||||
Total share issuances | — | — | 170,825 | 4.0 | 170,825 | 4.0 | ||||||||||||||||||||
December 31, 2023 | 51,004,076 | 1.4 | 47,224,304 | 107.4 | 98,228,380 | 108.8 |
(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 | ||||||||||||||||||||
Purchase of subordinate voting shares | — | — | (670,080) | (1.5) | (670,080) | (1.5) | ||||||||||||||||||||
Purchase of subordinate voting shares held for cancellation | — | — | (75,301) | (0.2) | (75,301) | (0.2) | ||||||||||||||||||||
Total share purchases | — | — | (745,381) | (1.7) | (745,381) | (1.7) | ||||||||||||||||||||
Exercise of stock options | — | — | 60,248 | — | 60,248 | — | ||||||||||||||||||||
Settlement of RSUs | — | — | 87,034 | 2.7 | 87,034 | 2.7 | ||||||||||||||||||||
Total share issuances | — | — | 147,282 | 2.7 | 147,282 | 2.7 | ||||||||||||||||||||
January 1, 2023 | 51,004,076 | 1.4 | 53,592,333 | 118.1 | 104,596,409 | 119.5 |
Canada Goose Holdings Inc. | Page 22 of 35 |
Three quarters ended | |||||||||||||||||
December 31, 2023 |
January 1, 2023 |
||||||||||||||||
(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 | $ | 22.21 | 758,327 | $ | 24.63 | 1,580,506 | |||||||||||
Exercised | $ | 2.83 | (36,350) | $ | 0.23 | (60,248) | |||||||||||
Cancelled | $ | 29.54 | (303,217) | $ | 41.29 | (146,079) | |||||||||||
Options outstanding, end of period | $ | 34.89 | 4,473,959 | $ | 36.60 | 4,096,869 |
Three quarters ended | |||||||||||
December 31, 2023 |
January 1, 2023 |
||||||||||
Number of shares | Number of shares | ||||||||||
RSUs outstanding, beginning of period | 318,082 | 215,590 | |||||||||
Granted | 376,543 | 209,187 | |||||||||
Settled | (134,475) | (87,034) | |||||||||
Cancelled | (38,599) | (14,039) | |||||||||
RSUs outstanding, end of period | 521,551 | 323,704 |
Canada Goose Holdings Inc. | Page 23 of 35 |
Three quarters ended | |||||||||||
December 31, 2023 |
January 1, 2023 |
||||||||||
Number of shares | Number of shares | ||||||||||
PSUs outstanding, beginning of period | — | — | |||||||||
Granted | 399,349 | — | |||||||||
Cancelled | (9,491) | — | |||||||||
PSUs outstanding, end of period | 389,858 | — |
Three quarters ended | |||||||||||
(in millions of Canadian dollars, except share and per share amounts) | December 31, 2023 |
January 1, 2023 |
|||||||||
Weighted average stock price valuation | $ | 22.21 | $ | 24.63 | |||||||
Weighted average exercise price | $ | 22.21 | $ | 24.63 | |||||||
Risk-free interest rate | 4.12 | % | 2.52 | % | |||||||
Expected life in years | 5 | 5 | |||||||||
Expected dividend yield | — | % | — | % | |||||||
Volatility | 40 | % | 40 | % | |||||||
Weighted average fair value of options issued | $ | 7.50 | $ | 7.86 |
Canada Goose Holdings Inc. | Page 24 of 35 |
Canada Goose Holdings Inc. | Page 25 of 35 |
December 31, 2023 |
|||||||||||||||||
(in millions of Canadian dollars) | Level 1 | Level 2 | Level 3 | Carrying value | Fair value | ||||||||||||
$ | $ | $ | $ | $ | |||||||||||||
Financial assets | |||||||||||||||||
Derivatives included in other current assets | — | 18.2 | — | 18.2 | 18.2 | ||||||||||||
Derivatives included in other long-term assets | — | 6.7 | — | 6.7 | 6.7 | ||||||||||||
Financial liabilities | |||||||||||||||||
Derivatives included in accounts payable and accrued liabilities | — | 3.8 | — | 3.8 | 3.8 | ||||||||||||
Mainland China Facilities | — | 9.3 | — | 9.3 | 9.3 | ||||||||||||
Japan Facility | — | 25.4 | — | 25.4 | 25.4 | ||||||||||||
Term Loan | — | 385.0 | — | 385.0 | 421.7 | ||||||||||||
Derivatives included in other long-term liabilities | — | 12.2 | — | 12.2 | 12.2 | ||||||||||||
Put option liability included in other long-term liabilities | — | — | 45.7 | 45.7 | 45.7 | ||||||||||||
Contingent consideration included in other long-term liabilities | — | — | 10.6 | 10.6 | 10.6 | ||||||||||||
Earn-Out included in other long-term liabilities (note 3) | — | — | 0.5 | 0.5 | 0.5 |
Canada Goose Holdings Inc. | Page 26 of 35 |
January 1, 2023 |
|||||||||||||||||
(in millions of Canadian dollars) | Level 1 | Level 2 | Level 3 | Carrying value | Fair value | ||||||||||||
$ | $ | $ | $ | $ | |||||||||||||
Financial assets | |||||||||||||||||
Derivatives included in other current assets | — | 18.9 | — | 18.9 | 18.9 | ||||||||||||
Derivatives included in other long-term assets | — | 22.1 | — | 22.1 | 22.1 | ||||||||||||
Financial liabilities | |||||||||||||||||
Derivatives included in accounts payable and accrued liabilities | — | 7.4 | — | 7.4 | 7.4 | ||||||||||||
Mainland China Facilities | — | — | 15.7 | 15.7 | 15.7 | ||||||||||||
Japan Facility | — | 32.6 | — | 32.6 | 32.6 | ||||||||||||
Term Loan | — | 397.5 | — | 397.5 | 432.3 | ||||||||||||
Derivatives included in other long-term liabilities | — | 4.0 | — | 4.0 | 4.0 | ||||||||||||
Put option liability included in other long-term liabilities | — | — | 22.8 | 22.8 | 22.8 | ||||||||||||
Contingent consideration included in other long-term liabilities | — | — | 14.0 | 14.0 | 14.0 |
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 27 of 35 |
Canada Goose Holdings Inc. | Page 28 of 35 |
Contractual obligations by fiscal year | Q4 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | ||||||||||||||||||
(in millions of Canadian dollars) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Accounts payable and accrued liabilities | 268.8 | — | — | — | — | — | — | 268.8 | ||||||||||||||||||
Mainland China Facilities | 9.3 | — | — | — | — | — | — | 9.3 | ||||||||||||||||||
Japan Facility | 25.4 | — | — | — | — | — | — | 25.4 | ||||||||||||||||||
Term Loan | 1.0 | 4.0 | 4.0 | 4.0 | 372.7 | — | — | 385.7 | ||||||||||||||||||
Interest commitments relating to borrowings1 |
8.7 | 34.9 | 34.6 | 34.6 | 17.3 | — | — | 130.1 | ||||||||||||||||||
Derivative contracts | — | — | 5.5 | — | — | — | — | 5.5 | ||||||||||||||||||
Lease obligations | 21.6 | 88.6 | 66.7 | 55.9 | 41.2 | 31.3 | 76.3 | 381.6 | ||||||||||||||||||
Pension obligation | — | — | — | — | — | — | 2.0 | 2.0 | ||||||||||||||||||
Total contractual obligations | 334.8 | 127.5 | 110.8 | 94.5 | 431.2 | 31.3 | 78.3 | 1,208.4 |
Canada Goose Holdings Inc. | Page 29 of 35 |
Canada Goose Holdings Inc. | Page 30 of 35 |
Third quarter ended | Three quarters ended | ||||||||||||||||||||||||||||||||||
December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
||||||||||||||||||||||||||||||||
(in millions of Canadian dollars) | Net loss | Tax recovery | Net loss | Tax recovery | Net gain | Tax recovery | Net loss | Tax recovery | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Forward foreign exchange contracts designated as cash flow hedges | (1.5) | 0.8 | (2.8) | 0.7 | 1.5 | 0.1 | (3.0) | 0.8 |
Third quarter ended | Three quarters ended | ||||||||||||||||
(in millions of Canadian dollars) | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
|||||||||||||
Loss (gain) from other comprehensive income | Reclassified |
Reclassified |
|||||||||||||||
Forward foreign exchange contracts designated as cash flow hedges | $ | $ | $ | $ | |||||||||||||
Revenue | 1.1 | 3.7 | 1.3 | 4.0 | |||||||||||||
SG&A expenses | (0.1) | (0.4) | (0.6) | 0.3 | |||||||||||||
Inventory | 0.4 | 0.1 | 0.4 | — |
Canada Goose Holdings Inc. | Page 31 of 35 |
(in millions) | Aggregate Amounts | Currency | ||||||
Forward contract to purchase Canadian dollars | USD | 95.1 | U.S. dollars | |||||
€ | 133.2 | euros | ||||||
¥ | 2,164.7 | Japanese yen | ||||||
Forward contract to sell Canadian dollars | USD | 35.8 | U.S. dollars | |||||
€ | 56.1 | euros | ||||||
Forward contract to purchase euros | CHF | 0.8 | Swiss francs | |||||
CNY | 774.6 | Chinese yuan | ||||||
£ | 29.0 | British pounds sterling | ||||||
HKD | 37.8 | Hong Kong dollars | ||||||
Forward contract to sell euros | CHF | 2.7 | Swiss francs | |||||
CNY | 43.2 | Chinese yuan | ||||||
£ | 6.5 | British pounds sterling | ||||||
HKD | 20.1 | Hong Kong dollars |
Third quarter ended | Three quarters ended | ||||||||||||||||||||||||||||||||||
December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
||||||||||||||||||||||||||||||||
(in millions of Canadian dollars) | Net loss | Tax recovery | Net loss | Tax recovery | Net loss | Tax recovery | Net gain | Tax expense | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Swaps designated as cash flow hedges | (6.0) | 1.9 | (1.8) | 0.6 | (3.0) | 0.6 | 7.5 | (2.6) |
Canada Goose Holdings Inc. | Page 32 of 35 |
Third quarter ended | Three quarters ended | ||||||||||||||||
(in millions of Canadian dollars) | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
|||||||||||||
(Gain) loss from other comprehensive income | $ | $ | $ | $ | |||||||||||||
Swaps designated as cash flow hedges | (0.7) | 0.2 | (1.6) | 0.6 |
Canada Goose Holdings Inc. | Page 33 of 35 |
Third quarter ended | Three quarters ended | ||||||||||||||||
(in millions of Canadian dollars) | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
|||||||||||||
$ | $ | $ | $ | ||||||||||||||
Trade receivables | 11.1 | 36.0 | (86.7) | (75.0) | |||||||||||||
Inventories | 45.7 | 35.3 | (5.5) | (60.0) | |||||||||||||
Other current assets | 13.6 | 3.8 | (3.0) | (8.9) | |||||||||||||
Accounts payable and accrued liabilities | 25.0 | 42.6 | 27.6 | 66.9 | |||||||||||||
Provisions | 35.8 | 30.5 | 33.9 | 33.9 | |||||||||||||
Other | 2.8 | 6.4 | 1.5 | (5.0) | |||||||||||||
Change in non-cash operating items | 134.0 | 154.6 | (32.2) | (48.1) |
Mainland China Facilities | Japan Facility | Revolving 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 | (0.5) | — | — | — | — | — | ||||||||||||||
Japan Facility borrowings | — | 11.7 | — | — | — | — | ||||||||||||||
Revolving Facility borrowings | — | — | — | — | — | — | ||||||||||||||
Term Loan repayments | — | — | — | (3.0) | — | — | ||||||||||||||
Transactions costs on financing activities | — | — | (0.1) | (0.1) | — | — | ||||||||||||||
Normal course issuer bid purchase of subordinate voting shares | — | — | — | — | — | (110.5) | ||||||||||||||
Principal payments on lease liabilities | — | — | — | — | (49.7) | — | ||||||||||||||
Additions from business combination | — | — | — | — | 1.2 | — | ||||||||||||||
Issuance of shares | — | — | — | — | — | 0.1 | ||||||||||||||
Non-cash items: | ||||||||||||||||||||
Accrued transaction costs | — | — | (0.7) | — | — | — | ||||||||||||||
Amortization of deferred transaction costs | — | — | 0.3 | 0.1 | — | — | ||||||||||||||
Unrealized foreign exchange gains | — | — | — | (7.7) | (4.2) | — | ||||||||||||||
Additions and amendments to lease liabilities (note 8) | — | — | — | — | 39.2 | — | ||||||||||||||
Share purchase charge to retained earnings (note 12) | — | — | — | — | — | 96.9 | ||||||||||||||
Normal course issuer bid purchase of subordinate voting shares held for cancellation | — | — | — | — | — | (0.3) | ||||||||||||||
Contributed surplus on share issuances (note 12) | — | — | — | — | — | 3.9 | ||||||||||||||
December 31, 2023 | 9.3 | 25.4 | (1.0) | 385.0 | 321.3 | 108.8 |
Canada Goose Holdings Inc. | Page 34 of 35 |
Mainland China Facilities |
Japan Facility | Revolving Facility |
Term Loan |
Lease liabilities | Share capital | |||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||
April 3, 2022 | — | — | (0.4) | 370.0 | 250.7 | 118.5 | ||||||||||||||
Cash flows: | ||||||||||||||||||||
Cash inflow from business combination | — | 19.5 | — | — | 3.2 | — | ||||||||||||||
Mainland China Facilities borrowings | 15.7 | — | — | — | — | — | ||||||||||||||
Japan Facility borrowings | — | 13.1 | — | — | — | — | ||||||||||||||
Revolving Facility borrowings | — | — | (0.5) | — | — | — | ||||||||||||||
Term Loan repayments | — | — | — | (3.0) | — | — | ||||||||||||||
Normal course issuer bid purchase of subordinate voting shares | — | — | — | — | — | (16.1) | ||||||||||||||
Principal payments on lease liabilities | — | — | — | — | (44.5) | — | ||||||||||||||
Non-cash items: | ||||||||||||||||||||
Amortization of deferred transaction costs | — | — | 0.3 | 0.1 | — | — | ||||||||||||||
Unrealized foreign exchange loss | — | — | — | 30.4 | 11.2 | — | ||||||||||||||
Additions and amendments to lease liabilities (note 8) | — | — | — | — | 96.3 | — | ||||||||||||||
Share purchase charge to retained earnings (note 12) | — | — | — | — | — | 14.6 | ||||||||||||||
Normal course issuer bid purchase of subordinate voting shares held for cancellation | — | — | — | — | — | (0.2) | ||||||||||||||
Contributed surplus on share issuances (note 12) | — | — | — | — | — | 2.7 | ||||||||||||||
January 1, 2023 | 15.7 | 32.6 | (0.6) | 397.5 | 316.9 | 119.5 |
Canada Goose Holdings Inc. | Page 35 of 35 |
Canada Goose Holdings Inc. | Page 1 of 43 |
Canada Goose Holdings Inc. | Page 2 of 43 |
Canada Goose Holdings Inc. | Page 3 of 43 |
Canada Goose Holdings Inc. | Page 4 of 43 |
CAD $ millions (except per share data) |
Three quarters ended | Third quarter ended | |||||||||||||||||||||
December 31, 2023 |
January 1, 2023 |
% Change |
December 31, 2023 |
January 1, 2023 |
% Change |
||||||||||||||||||
Reclassified | Reclassified | ||||||||||||||||||||||
Revenue | 975.8 | 923.8 | 5.6 | % | 609.9 | 576.7 | 5.8 | % | |||||||||||||||
Gross profit | 684.4 | 624.9 | 9.5 | % | 449.7 | 416.4 | 8.0 | % | |||||||||||||||
Gross margin | 70.1 | % | 67.6 | % | 250 | bps | 73.7 | % | 72.2 | % | 150 | bps | |||||||||||
Operating income | 101.4 | 130.0 | (22.0) | % | 198.8 | 190.7 | 4.2 | % | |||||||||||||||
Net income | 50.5 | 78.9 | (36.0) | % | 131.4 | 137.5 | (4.4) | % | |||||||||||||||
Net income attributable to shareholders of the Company |
53.4 | 75.8 | (29.6) | % | 130.6 | 134.9 | (3.2) | % | |||||||||||||||
Earnings per share attributable to shareholders of the Company | |||||||||||||||||||||||
Basic | $ | 0.52 | $ | 0.72 | (27.8) | % | $ | 1.30 | $ | 1.28 | 1.6 | % | |||||||||||
Diluted | $ | 0.52 | $ | 0.72 | (27.8) | % | $ | 1.29 | $ | 1.28 | 0.8 | % |
CAD $ millions | December 31, 2023 |
January 1, 2023 |
April 2, 2023 |
||||||||||||||
Financial Position: | |||||||||||||||||
Cash | 154.3 | 344.2 | 286.5 | ||||||||||||||
Net working capital1 |
353.7 | 326.5 | 328.0 | ||||||||||||||
Total assets | 1,601.9 | 1,703.0 | 1,590.0 | ||||||||||||||
Total non-current liabilities | 747.6 | 745.5 | 760.1 | ||||||||||||||
Equity | 400.9 | 498.1 | 477.5 |
Canada Goose Holdings Inc. | Page 5 of 43 |
Canada Goose Holdings Inc. | Page 6 of 43 |
Canada Goose Holdings Inc. | Page 7 of 43 |
Canada Goose Holdings Inc. | Page 8 of 43 |
Fiscal 2024 | |||||||||||||||||
April 2, 2023 |
Q1 Additions | Q2 Additions | Q3 Additions | December 31, 2023 |
|||||||||||||
Canada | 9 | — | — | — | 9 | ||||||||||||
United States | 8 | 2 | 3 | 2 | 15 | ||||||||||||
North America | 17 | 2 | 3 | 2 | 24 | ||||||||||||
Asia Pacific | 26 | — | 5 | 1 | 32 | ||||||||||||
EMEA1 |
8 | 1 | — | — | 9 | ||||||||||||
Total permanent stores | 51 | 3 | 8 | 3 | 65 |
Fiscal 2023 |
||||||||||||||||||||
April 3, 2022 |
Q1 Additions | Q2 Additions | Q3 Additions | Q4 Additions | April 2, 2023 |
|||||||||||||||
Canada | 9 | — | — | — | — | 9 | ||||||||||||||
United States | 6 | — | — | 2 | — | 8 | ||||||||||||||
North America | 15 | — | — | 2 | — | 17 | ||||||||||||||
Asia Pacific | 19 | 2 | 2 | 3 | — | 26 | ||||||||||||||
EMEA1 |
7 | — | — | 1 | — | 8 | ||||||||||||||
Total permanent stores | 41 | 2 | 2 | 6 | — | 51 |
Canada Goose Holdings Inc. | Page 9 of 43 |
CAD $ millions (except share and per share data) |
Three quarters ended | $ Change |
% Change |
||||||||||||||||||||
December 31, 2023 |
January 1, 2023 |
||||||||||||||||||||||
Reclassified | |||||||||||||||||||||||
Revenue | 975.8 | 923.8 | 52.0 | 5.6 | % | ||||||||||||||||||
Cost of sales | 291.4 | 298.9 | 7.5 | 2.5 | % | ||||||||||||||||||
Gross profit | 684.4 | 624.9 | 59.5 | 9.5 | % | ||||||||||||||||||
Gross margin | 70.1 | % | 67.6 | % | 250 | bps | |||||||||||||||||
SG&A expenses | 583.0 | 494.9 | (88.1) | (17.8) | % | ||||||||||||||||||
SG&A expenses as % of revenue | 59.7 | % | 53.6 | % | (610) | bps | |||||||||||||||||
Operating income | 101.4 | 130.0 | (28.6) | (22.0) | % | ||||||||||||||||||
Operating margin | 10.4 | % | 14.1 | % | (370) | bps | |||||||||||||||||
Net interest, finance and other costs | 42.9 | 31.9 | (11.0) | (34.5) | % | ||||||||||||||||||
Income before income taxes | 58.5 | 98.1 | (39.6) | (40.4) | % | ||||||||||||||||||
Income tax expense | 8.0 | 19.2 | 11.2 | 58.3 | % | ||||||||||||||||||
Effective tax rate | 13.7 | % | 19.6 | % | 590 | bps | |||||||||||||||||
Net income | 50.5 | 78.9 | (28.4) | (36.0) | % | ||||||||||||||||||
Net income attributable to non-controlling interest | (2.9) | 3.1 | (6.0) | (193.5) | % | ||||||||||||||||||
Net income attributable to shareholders of the Company | 53.4 | 75.8 | (22.4) | (29.6) | % | ||||||||||||||||||
Weighted average number of shares outstanding | |||||||||||||||||||||||
Basic | 102,144,232 | 105,238,509 | |||||||||||||||||||||
Diluted | 103,125,365 | 105,778,351 | |||||||||||||||||||||
Earnings per share attributable to shareholders of the Company | |||||||||||||||||||||||
Basic | $ | 0.52 | $ | 0.72 | (0.20) | (27.8) | % | ||||||||||||||||
Diluted | $ | 0.52 | $ | 0.72 | (0.20) | (27.8) | % |
Canada Goose Holdings Inc. | Page 10 of 43 |
Three quarters ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
CAD $ millions | December 31, 2023 |
January 1, 2023 |
As reported | Foreign exchange impact | In constant currency1 |
As reported | In constant currency1 |
||||||||||||||||||||||||||||||||||
DTC | 679.2 | 579.8 | 99.4 | (6.7) | 92.7 | 17.1 | % | 16.0 | % | ||||||||||||||||||||||||||||||||
Wholesale | 270.9 | 328.3 | (57.4) | (9.8) | (67.2) | (17.5) | % | (20.5) | % | ||||||||||||||||||||||||||||||||
Other | 25.7 | 15.7 | 10.0 | — | 10.0 | 63.7 | % | 63.7 | % | ||||||||||||||||||||||||||||||||
Total revenue | 975.8 | 923.8 | 52.0 | (16.5) | 35.5 | 5.6 | % | 3.8 | % |
Three quarters ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
CAD $ millions | December 31, 2023 |
January 1, 2023 |
As reported | Foreign exchange impact | In constant currency2 |
As reported | In constant currency2 |
||||||||||||||||||||||||||||||||||
Canada | 176.3 | 185.8 | (9.5) | — | (9.5) | (5.1) | % | (5.1) | % | ||||||||||||||||||||||||||||||||
United States | 241.8 | 272.7 | (30.9) | (6.4) | (37.3) | (11.3) | % | (13.7) | % | ||||||||||||||||||||||||||||||||
North America | 418.1 | 458.5 | (40.4) | (6.4) | (46.8) | (8.8) | % | (10.2) | % | ||||||||||||||||||||||||||||||||
Asia Pacific | 359.0 | 240.1 | 118.9 | (0.3) | 118.6 | 49.5 | % | 49.4 | % | ||||||||||||||||||||||||||||||||
EMEA1 |
198.7 | 225.2 | (26.5) | (9.8) | (36.3) | (11.8) | % | (16.1) | % | ||||||||||||||||||||||||||||||||
Total revenue | 975.8 | 923.8 | 52.0 | (16.5) | 35.5 | 5.6 | % | 3.8 | % |
Canada Goose Holdings Inc. | Page 11 of 43 |
Canada Goose Holdings Inc. | Page 12 of 43 |
Three quarters ended | |||||||||||||||||||||||||||||||||||
December 31, 2023 |
January 1, 2023 |
||||||||||||||||||||||||||||||||||
CAD $ millions | Gross profit | Gross margin | Gross profit | Gross margin | $ Change |
Change in bps |
|||||||||||||||||||||||||||||
DTC | 528.0 | 77.7 | % | 449.4 | 77.5 | % | 78.6 | 20 | bps | ||||||||||||||||||||||||||
Wholesale | 150.2 | 55.4 | % | 169.5 | 51.6 | % | (19.3) | 380 | bps | ||||||||||||||||||||||||||
Other | 6.2 | 24.1 | % | 6.0 | 38.2 | % | 0.2 | (1,410) | bps | ||||||||||||||||||||||||||
Total gross profit | 684.4 | 70.1 | % | 624.9 | 67.6 | % | 59.5 | 250 | bps |
Canada Goose Holdings Inc. | Page 13 of 43 |
Three quarters ended | |||||||||||||||||||||||||||||||||||
December 31, 2023 |
January 1, 2023 |
||||||||||||||||||||||||||||||||||
CAD $ millions | Reported | % of segment revenue | Reported | % of segment revenue | $ Change |
% Change |
|||||||||||||||||||||||||||||
Reclassified | Reclassified | ||||||||||||||||||||||||||||||||||
DTC | 234.6 | 34.5 | % | 184.0 | 31.7 | % | (50.6) | (27.5) | % | ||||||||||||||||||||||||||
Wholesale | 51.2 | 18.9 | % | 51.0 | 15.5 | % | (0.2) | (0.4) | % | ||||||||||||||||||||||||||
Other | 297.2 | 259.9 | (37.3) | (14.4) | % | ||||||||||||||||||||||||||||||
Total SG&A expenses | 583.0 | 59.7 | % | 494.9 | 53.6 | % | (88.1) | (17.8) | % |
Canada Goose Holdings Inc. | Page 14 of 43 |
Three quarters ended | |||||||||||||||||||||||||||||||||||
December 31, 2023 |
January 1, 2023 |
||||||||||||||||||||||||||||||||||
CAD $ millions | Operating income (loss) | Operating margin | Operating income (loss) | Operating margin | $ Change |
Change in bps |
|||||||||||||||||||||||||||||
Reclassified | Reclassified | ||||||||||||||||||||||||||||||||||
DTC | 293.4 | 43.2 | % | 265.4 | 45.8 | % | 28.0 | (260) | bps | ||||||||||||||||||||||||||
Wholesale | 99.0 | 36.5 | % | 118.5 | 36.1 | % | (19.5) | 40 | bps | ||||||||||||||||||||||||||
Other | (291.0) | (253.9) | (37.1) | ||||||||||||||||||||||||||||||||
Total operating income | 101.4 | 10.4 | % | 130.0 | 14.1 | % | (28.6) | (370) | bps |
Canada Goose Holdings Inc. | Page 15 of 43 |
Canada Goose Holdings Inc. | Page 16 of 43 |
CAD $ millions (except share and per share data) |
Third quarter ended | $ Change |
% Change |
||||||||||||||||||||
December 31, 2023 |
January 1, 2023 |
||||||||||||||||||||||
Reclassified | |||||||||||||||||||||||
Revenue | 609.9 | 576.7 | 33.2 | 5.8 | % | ||||||||||||||||||
Cost of sales | 160.2 | 160.3 | 0.1 | 0.1 | % | ||||||||||||||||||
Gross profit | 449.7 | 416.4 | 33.3 | 8.0 | % | ||||||||||||||||||
Gross margin | 73.7 | % | 72.2 | % | 150 | bps | |||||||||||||||||
SG&A expenses | 250.9 | 225.7 | (25.2) | (11.2) | % | ||||||||||||||||||
SG&A expenses as % of revenue | 41.1 | % | 39.1 | % | (200) | bps | |||||||||||||||||
Operating income | 198.8 | 190.7 | 8.1 | 4.2 | % | ||||||||||||||||||
Operating margin | 32.6 | % | 33.1 | % | (50) | bps | |||||||||||||||||
Net interest, finance and other costs | 14.8 | 2.4 | (12.4) | (516.7) | % | ||||||||||||||||||
Income before income taxes | 184.0 | 188.3 | (4.3) | (2.3) | % | ||||||||||||||||||
Income tax expense | 52.6 | 50.8 | (1.8) | (3.5) | % | ||||||||||||||||||
Effective tax rate | 28.6 | % | 27.0 | % | (160) | bps | |||||||||||||||||
Net income | 131.4 | 137.5 | (6.1) | (4.4) | % | ||||||||||||||||||
Net income attributable to non-controlling interest |
0.8 | 2.6 | (1.8) | (69.2) | % | ||||||||||||||||||
Net income attributable to shareholders of the Company |
130.6 | 134.9 | (4.3) | (3.2) | % | ||||||||||||||||||
Weighted average number of shares outstanding | |||||||||||||||||||||||
Basic | 100,253,473 | 105,146,788 | |||||||||||||||||||||
Diluted | 101,308,836 | 105,668,608 | |||||||||||||||||||||
Earnings per share attributable to shareholders of the Company | |||||||||||||||||||||||
Basic | $ | 1.30 | $ | 1.28 | 0.02 | 1.6 | % | ||||||||||||||||
Diluted | $ | 1.29 | $ | 1.28 | 0.01 | 0.8 | % |
Canada Goose Holdings Inc. | Page 17 of 43 |
Third quarter ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
CAD $ millions | December 31, 2023 |
January 1, 2023 |
As reported | Foreign exchange impact | In constant currency1 |
As reported | In constant currency1 |
||||||||||||||||||||||||||||||||||
DTC | 514.0 | 450.2 | 63.8 | (1.1) | 62.7 | 14.2 | % | 13.9 | % | ||||||||||||||||||||||||||||||||
Wholesale | 81.8 | 114.4 | (32.6) | (1.3) | (33.9) | (28.5) | % | (29.6) | % | ||||||||||||||||||||||||||||||||
Other | 14.1 | 12.1 | 2.0 | — | 2.0 | 16.5 | % | 16.5 | % | ||||||||||||||||||||||||||||||||
Total revenue | 609.9 | 576.7 | 33.2 | (2.4) | 30.8 | 5.8 | % | 5.3 | % |
Third quarter ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
CAD $ millions | December 31, 2023 |
January 1, 2023 |
As reported | Foreign exchange impact | In constant currency2 |
As reported | In constant currency2 |
||||||||||||||||||||||||||||||||||
Canada | 94.9 | 109.2 | (14.3) | — | (14.3) | (13.1) | % | (13.1) | % | ||||||||||||||||||||||||||||||||
United States | 157.5 | 182.8 | (25.3) | (3.3) | (28.6) | (13.8) | % | (15.6) | % | ||||||||||||||||||||||||||||||||
North America | 252.4 | 292.0 | (39.6) | (3.3) | (42.9) | (13.6) | % | (14.7) | % | ||||||||||||||||||||||||||||||||
Asia Pacific | 270.7 | 167.6 | 103.1 | 2.3 | 105.4 | 61.5 | % | 62.9 | % | ||||||||||||||||||||||||||||||||
EMEA1 |
86.8 | 117.1 | (30.3) | (1.4) | (31.7) | (25.9) | % | (27.1) | % | ||||||||||||||||||||||||||||||||
Total revenue | 609.9 | 576.7 | 33.2 | (2.4) | 30.8 | 5.8 | % | 5.3 | % |
Canada Goose Holdings Inc. | Page 18 of 43 |
Canada Goose Holdings Inc. | Page 19 of 43 |
Third quarter ended | |||||||||||||||||||||||||||||||||||
December 31, 2023 |
January 1, 2023 |
||||||||||||||||||||||||||||||||||
CAD $ millions | Gross profit | Gross margin | Gross profit | Gross margin | $ Change |
Change in bps |
|||||||||||||||||||||||||||||
DTC | 403.6 | 78.5 | % | 351.1 | 78.0 | % | 52.5 | 50 | bps | ||||||||||||||||||||||||||
Wholesale | 43.7 | 53.4 | % | 60.6 | 53.0 | % | (16.9) | 40 | bps | ||||||||||||||||||||||||||
Other | 2.4 | 17.0 | % | 4.7 | 38.8 | % | (2.3) | (2,180) | bps | ||||||||||||||||||||||||||
Total gross profit | 449.7 | 73.7 | % | 416.4 | 72.2 | % | 33.3 | 150 | bps |
Canada Goose Holdings Inc. | Page 20 of 43 |
Third quarter ended | |||||||||||||||||||||||||||||||||||
December 31, 2023 |
January 1, 2023 |
||||||||||||||||||||||||||||||||||
CAD $ millions | Reported | % of segment revenue | Reported | % of segment revenue | $ Change |
% Change |
|||||||||||||||||||||||||||||
Reclassified | Reclassified | ||||||||||||||||||||||||||||||||||
DTC | 116.5 | 22.7 | % | 92.3 | 20.5 | % | (24.2) | (26.2) | % | ||||||||||||||||||||||||||
Wholesale | 17.8 | 21.8 | % | 21.8 | 19.1 | % | 4.0 | 18.3 | % | ||||||||||||||||||||||||||
Other | 116.6 | 111.6 | (5.0) | (4.5) | % | ||||||||||||||||||||||||||||||
Total SG&A expenses | 250.9 | 41.1 | % | 225.7 | 39.1 | % | (25.2) | (11.2) | % |
Canada Goose Holdings Inc. | Page 21 of 43 |
Third quarter ended | |||||||||||||||||||||||||||||||||||
December 31, 2023 |
January 1, 2023 |
||||||||||||||||||||||||||||||||||
CAD $ millions | Operating income (loss) | Operating margin | Operating income (loss) | Operating margin | $ Change |
Change in bps |
|||||||||||||||||||||||||||||
Reclassified | Reclassified | ||||||||||||||||||||||||||||||||||
DTC | 287.1 | 55.9 | % | 258.8 | 57.5 | % | 28.3 | (160) | bps | ||||||||||||||||||||||||||
Wholesale | 25.9 | 31.7 | % | 38.8 | 33.9 | % | (12.9) | (220) | bps | ||||||||||||||||||||||||||
Other | (114.2) | (106.9) | (7.3) | ||||||||||||||||||||||||||||||||
Total operating income | 198.8 | 32.6 | % | 190.7 | 33.1 | % | 8.1 | (50) | bps |
Canada Goose Holdings Inc. | Page 22 of 43 |
Canada Goose Holdings Inc. | Page 23 of 43 |
CAD $ millions (except per share data) | Revenue | % of fiscal year revenue | Net income (loss) attributable to shareholders of the Company | Earnings (loss) per share attributable to shareholders of the Company |
Operating income (loss) (reclassified) |
Adjusted EBIT1 |
Adjusted net income (loss) per diluted share attributable to shareholders of the Company1 |
||||||||||||||||||||||||||||
DTC | Wholesale | Other | Total | Basic | Diluted | ||||||||||||||||||||||||||||||
Fiscal 2024 | |||||||||||||||||||||||||||||||||||
Third Quarter | 514.0 | 81.8 | 14.1 | 609.9 | — | % | 130.6 | $ | 1.30 | $ | 1.29 | 198.8 | 207.2 | $ | 1.37 | ||||||||||||||||||||
Second Quarter | 109.4 | 162.0 | 9.7 | 281.1 | — | % | 3.9 | $ | 0.04 | $ | 0.04 | 2.3 | 15.6 | $ | 0.16 | ||||||||||||||||||||
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 |
Canada Goose Holdings Inc. | Page 24 of 43 |
Canada Goose Holdings Inc. | Page 25 of 43 |
Three quarters ended | Third quarter ended | ||||||||||||||||||||||
CAD $ millions (except per share data) | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
|||||||||||||||||||
Reclassified | Reclassified | ||||||||||||||||||||||
Adjusted EBIT | 131.7 | 147.5 | 207.2 | 197.1 | |||||||||||||||||||
Adjusted EBIT margin | 13.5 | % | 16.0 | % | 34.0 | % | 34.2 | % | |||||||||||||||
Adjusted EBITDA | 222.9 | 220.7 | 239.4 | 222.5 | |||||||||||||||||||
Adjusted net income attributable to shareholders of the Company | 81.7 | 96.0 | 138.6 | 134.5 | |||||||||||||||||||
Adjusted net income per basic share attributable to shareholders of the Company | $ | 0.80 | $ | 0.91 | $ | 1.38 | $ | 1.28 | |||||||||||||||
Adjusted net income per diluted share attributable to shareholders of the Company | $ | 0.79 | $ | 0.91 | $ | 1.37 | $ | 1.27 | |||||||||||||||
Free operating cash flow | (27.6) | 43.4 | 299.7 | 321.0 |
CAD $ millions | December 31, 2023 |
January 1, 2023 |
April 2, 2023 |
||||||||||||||
Net debt | (587.4) | (419.2) | (468.1) | ||||||||||||||
Net working capital | 353.7 | 326.5 | 328.0 |
Canada Goose Holdings Inc. | Page 26 of 43 |
Canada Goose Holdings Inc. | Page 27 of 43 |
Three quarters ended | Third quarter ended | ||||||||||||||||||||||
CAD $ millions | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
|||||||||||||||||||
Net income | 50.5 | 78.9 | 131.4 | 137.5 | |||||||||||||||||||
Add (deduct) the impact of: | |||||||||||||||||||||||
Income tax expense | 8.0 | 19.2 | 52.6 | 50.8 | |||||||||||||||||||
Net interest, finance and other costs | 42.9 | 31.9 | 14.8 | 2.4 | |||||||||||||||||||
Operating income | 101.4 | 130.0 | 198.8 | 190.7 | |||||||||||||||||||
Net temporary store closure costs (a) | — | 3.2 | — | 0.8 | |||||||||||||||||||
Head office transition costs (c) | 0.8 | 4.7 | — | 1.5 | |||||||||||||||||||
Japan Joint Venture costs (e) | 2.4 | 8.3 | 2.3 | 4.1 | |||||||||||||||||||
Strategic initiatives (g) | 21.1 | — | 5.6 | — | |||||||||||||||||||
Net corporate restructuring costs (h) | 5.5 | — | — | — | |||||||||||||||||||
Legal proceeding costs (i) | — | 2.2 | — | — | |||||||||||||||||||
Paola Confectii Earn-Out costs (k) | 0.5 | — | 0.5 | — | |||||||||||||||||||
Other (l) | — | (0.9) | — | — | |||||||||||||||||||
Total adjustments | 30.3 | 17.5 | 8.4 | 6.4 | |||||||||||||||||||
Adjusted EBIT | 131.7 | 147.5 | 207.2 | 197.1 | |||||||||||||||||||
Adjusted EBIT margin | 13.5 | % | 16.0 | % | 34.0 | % | 34.2 | % |
Canada Goose Holdings Inc. | Page 28 of 43 |
Three quarters ended | Third quarter ended | ||||||||||||||||||||||
CAD $ millions | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
|||||||||||||||||||
Net income | 50.5 | 78.9 | 131.4 | 137.5 | |||||||||||||||||||
Add (deduct) the impact of: | |||||||||||||||||||||||
Income tax expense | 8.0 | 19.2 | 52.6 | 50.8 | |||||||||||||||||||
Net interest, finance and other costs | 42.9 | 31.9 | 14.8 | 2.4 | |||||||||||||||||||
Operating income | 101.4 | 130.0 | 198.8 | 190.7 | |||||||||||||||||||
Net temporary store closure costs (a) | — | 3.2 | — | 0.8 | |||||||||||||||||||
Head office transition costs (c) | 0.8 | 4.7 | — | 1.5 | |||||||||||||||||||
Japan Joint Venture costs (e) | 2.4 | 8.3 | 2.3 | 4.1 | |||||||||||||||||||
Strategic initiatives (g) | 21.1 | — | 5.6 | — | |||||||||||||||||||
Net corporate restructuring costs (h) | 5.5 | — | — | — | |||||||||||||||||||
Legal proceeding costs (i) | — | 2.2 | — | — | |||||||||||||||||||
Paola Confectii Earn-Out costs (k) | 0.5 | — | 0.5 | — | |||||||||||||||||||
Net depreciation and amortization (o) | 91.2 | 73.2 | 32.2 | 25.4 | |||||||||||||||||||
Other (l) | — | (0.9) | — | — | |||||||||||||||||||
Total adjustments | 121.5 | 90.7 | 40.6 | 31.8 | |||||||||||||||||||
Adjusted EBITDA | 222.9 | 220.7 | 239.4 | 222.5 |
Canada Goose Holdings Inc. | Page 29 of 43 |
Three quarters ended | Third quarter ended | ||||||||||||||||||||||
CAD $ millions | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
|||||||||||||||||||
Net income | 50.5 | 78.9 | 131.4 | 137.5 | |||||||||||||||||||
Add (deduct) the impact of: | |||||||||||||||||||||||
Net temporary store closure costs (a) (b) | — | 3.3 | — | 0.8 | |||||||||||||||||||
Head office transition costs (c) (d) | 1.2 | 5.9 | — | 2.0 | |||||||||||||||||||
Japan Joint Venture costs (e) | 2.4 | 8.3 | 2.3 | 4.1 | |||||||||||||||||||
Japan Joint Venture remeasurement loss (gain) on contingent consideration and put option (f) | 10.8 | (4.7) | 3.0 | (2.7) | |||||||||||||||||||
Strategic initiatives (g) | 21.1 | — | 5.6 | — | |||||||||||||||||||
Net corporate restructuring costs (h) | 5.5 | — | — | — | |||||||||||||||||||
Legal proceeding costs (i) | — | 2.2 | — | — | |||||||||||||||||||
Unrealized foreign exchange loss (gain) on Term Loan Facility (j) | — | 11.7 | 0.5 | (3.6) | |||||||||||||||||||
Paola Confectii Earn-Out costs (k) | 0.5 | — | 0.5 | — | |||||||||||||||||||
Other (l) | — | (0.9) | — | — | |||||||||||||||||||
41.5 | 25.8 | 11.9 | 0.6 | ||||||||||||||||||||
Tax effect of adjustments | (6.2) | (4.3) | (1.3) | (0.3) | |||||||||||||||||||
Deferred tax adjustment (m) | (0.5) | — | — | — | |||||||||||||||||||
Adjusted net income | 85.3 | 100.4 | 142.0 | 137.8 | |||||||||||||||||||
Adjusted net income attributable to non-controlling interest (n) | (3.6) | (4.4) | (3.4) | (3.3) | |||||||||||||||||||
Adjusted net income attributable to shareholders of the Company | 81.7 | 96.0 | 138.6 | 134.5 | |||||||||||||||||||
Weighted average number of shares outstanding | |||||||||||||||||||||||
Basic | 102,144,232 | 105,238,509 | 100,253,473 | 105,146,788 | |||||||||||||||||||
Diluted | 103,125,365 | 105,778,351 | 101,308,836 | 105,668,608 | |||||||||||||||||||
Adjusted net income per basic share attributable to shareholders of the Company |
$ | 0.80 | $ | 0.91 | $ | 1.38 | $ | 1.28 | |||||||||||||||
Adjusted net income per diluted share attributable to shareholders of the Company |
$ | 0.79 | $ | 0.91 | $ | 1.37 | $ | 1.27 |
Canada Goose Holdings Inc. | Page 30 of 43 |
Canada Goose Holdings Inc. | Page 31 of 43 |
CAD $ millions | December 31, 2023 |
January 1, 2023 |
$ Change |
April 2, 2023 |
$ Change |
||||||||||||||||||||||||
Current assets | 846.3 | 1,011.1 | (164.8) | 863.2 | (16.9) | ||||||||||||||||||||||||
Deduct: Cash | (154.3) | (344.2) | 189.9 | (286.5) | 132.2 | ||||||||||||||||||||||||
Current assets, net of cash | 692.0 | 666.9 | 25.1 | 576.7 | 115.3 | ||||||||||||||||||||||||
Current liabilities | 453.4 | 459.4 | (6.0) | 352.4 | 101.0 | ||||||||||||||||||||||||
Deduct the impact of: | |||||||||||||||||||||||||||||
Short-term borrowings | (38.7) | (52.4) | 13.7 | (27.6) | (11.1) | ||||||||||||||||||||||||
Current portion of lease liabilities | (76.4) | (66.6) | (9.8) | (76.1) | (0.3) | ||||||||||||||||||||||||
Current liabilities, net of short-term borrowings and current portion of lease liabilities | 338.3 | 340.4 | (2.1) | 248.7 | 89.6 | ||||||||||||||||||||||||
Net working capital1 |
353.7 | 326.5 | 27.2 | 328.0 | 25.7 |
Canada Goose Holdings Inc. | Page 32 of 43 |
Three quarters ended | Third quarter ended | ||||||||||||||||||||||||||||||||||
CAD $ millions | December 31, 2023 |
January 1, 2023 |
$ Change |
December 31, 2023 |
January 1, 2023 |
$ Change |
|||||||||||||||||||||||||||||
Total cash from (used in): |
|||||||||||||||||||||||||||||||||||
Operating activities | 81.8 | 109.3 | (27.5) | 348.3 | 351.0 | (2.7) | |||||||||||||||||||||||||||||
Investing activities | (59.7) | (21.4) | (38.3) | (27.6) | (12.8) | (14.8) | |||||||||||||||||||||||||||||
Financing activities | (153.3) | (35.3) | (118.0) | (204.4) | (95.2) | (109.2) | |||||||||||||||||||||||||||||
Effects of foreign currency exchange rate changes on cash | (1.0) | 3.9 | (4.9) | 0.5 | 4.1 | (3.6) | |||||||||||||||||||||||||||||
(Decrease) increase cash | (132.2) | 56.5 | (188.7) | 116.8 | 247.1 | (130.3) | |||||||||||||||||||||||||||||
Cash, beginning of period | 286.5 | 287.7 | (1.2) | 37.5 | 97.1 | (59.6) | |||||||||||||||||||||||||||||
Cash, end of period | 154.3 | 344.2 | (189.9) | 154.3 | 344.2 | (189.9) | |||||||||||||||||||||||||||||
Free operating cash flow1 |
(27.6) | 43.4 | (71.0) | 299.7 | 321.0 | (21.3) |
Canada Goose Holdings Inc. | Page 33 of 43 |
Canada Goose Holdings Inc. | Page 34 of 43 |
Three quarters ended | Third quarter ended | ||||||||||||||||||||||||||||||||||
CAD $ millions | December 31, 2023 |
January 1, 2023 |
$ Change |
December 31, 2023 |
January 1, 2023 |
$ Change |
|||||||||||||||||||||||||||||
Total cash from (used in): | |||||||||||||||||||||||||||||||||||
Operating activities | 81.8 | 109.3 | (27.5) | 348.3 | 351.0 | (2.7) | |||||||||||||||||||||||||||||
Investing activities | (59.7) | (21.4) | (38.3) | (27.6) | (12.8) | (14.8) | |||||||||||||||||||||||||||||
Principal payments on lease liabilities | (49.7) | (44.5) | (5.2) | (21.0) | (17.2) | (3.8) | |||||||||||||||||||||||||||||
Free operating cash flow1 |
(27.6) | 43.4 | (71.0) | 299.7 | 321.0 | (21.3) |
CAD $ millions | December 31, 2023 |
January 1, 2023 |
$ Change |
April 2, 2023 |
$ Change |
||||||||||||||||||||||||
Cash | 154.3 | 344.2 | (189.9) | 286.5 | (132.2) | ||||||||||||||||||||||||
Mainland China Credit Facilities | (9.3) | (15.7) | 6.4 | (9.8) | 0.5 | ||||||||||||||||||||||||
Japan Credit Facility | (25.4) | (32.6) | 7.2 | (13.7) | (11.7) | ||||||||||||||||||||||||
Revolving Credit Facility | — | — | — | — | — | ||||||||||||||||||||||||
Term Loan Facility | (385.7) | (398.2) | 12.5 | (396.3) | 10.6 | ||||||||||||||||||||||||
Lease liabilities | (321.3) | (316.9) | (4.4) | (334.8) | 13.5 | ||||||||||||||||||||||||
Net debt1 |
(587.4) | (419.2) | (168.2) | (468.1) | (119.3) |
Canada Goose Holdings Inc. | Page 35 of 43 |
Canada Goose Holdings Inc. | Page 36 of 43 |
Canada Goose Holdings Inc. | Page 37 of 43 |
Canada Goose Holdings Inc. | Page 38 of 43 |
Canada Goose Holdings Inc. | Page 39 of 43 |
Canada Goose Holdings Inc. | Page 40 of 43 |
Canada Goose Holdings Inc. | Page 41 of 43 |
Canada Goose Holdings Inc. | Page 42 of 43 |
Canada Goose Holdings Inc. | Page 43 of 43 |
1. | I have reviewed the financial statements and MD&A for the third quarter ended December 31, 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 third quarter ended December 31, 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 |
Third quarter ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
CAD $ millions | December 31, 2023 |
January 1, 2023 |
As reported | Foreign exchange impact | In constant currency7 |
As reported | In constant currency7 |
||||||||||||||||||||||||||||||||||
DTC | 514.0 | 450.2 | 63.8 | (1.1) | 62.7 | 14.2 | % | 13.9 | % | ||||||||||||||||||||||||||||||||
Wholesale | 81.8 | 114.4 | (32.6) | (1.3) | (33.9) | (28.5) | % | (29.6) | % | ||||||||||||||||||||||||||||||||
Other | 14.1 | 12.1 | 2.0 | — | 2.0 | 16.5 | % | 16.5 | % | ||||||||||||||||||||||||||||||||
Total revenue | 609.9 | 576.7 | 33.2 | (2.4) | 30.8 | 5.8 | % | 5.3 | % |
Third quarter ended |
$ Change | % Change | |||||||||||||||||||||||||||||||||||||||
CAD $ millions | December 31, 2023 |
January 1, 2023 |
As reported | Foreign exchange impact | In constant currency7 |
As reported | In constant currency7 |
||||||||||||||||||||||||||||||||||
Canada | 94.9 | 109.2 | (14.3) | — | (14.3) | (13.1) | % | (13.1) | % | ||||||||||||||||||||||||||||||||
United States | 157.5 | 182.8 | (25.3) | (3.3) | (28.6) | (13.8) | % | (15.6) | % | ||||||||||||||||||||||||||||||||
North America | 252.4 | 292.0 | (39.6) | (3.3) | (42.9) | (13.6) | % | (14.7) | % | ||||||||||||||||||||||||||||||||
Asia Pacific | 270.7 | 167.6 | 103.1 | 2.3 | 105.4 | 61.5 | % | 62.9 | % | ||||||||||||||||||||||||||||||||
EMEA | 86.8 | 117.1 | (30.3) | (1.4) | (31.7) | (25.9) | % | (27.1) | % | ||||||||||||||||||||||||||||||||
Total revenue | 609.9 | 576.7 | 33.2 | (2.4) | 30.8 | 5.8 | % | 5.3 | % |
Third quarter ended | Three quarters ended | ||||||||||||||||
December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
||||||||||||||
Reclassified | Reclassified | ||||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Revenue | 609.9 | 576.7 | 975.8 | 923.8 | |||||||||||||
Cost of sales | 160.2 | 160.3 | 291.4 | 298.9 | |||||||||||||
Gross profit | 449.7 | 416.4 | 684.4 | 624.9 | |||||||||||||
Selling, general & administrative expenses | 250.9 | 225.7 | 583.0 | 494.9 | |||||||||||||
Operating income | 198.8 | 190.7 | 101.4 | 130.0 | |||||||||||||
Net interest, finance and other costs | 14.8 | 2.4 | 42.9 | 31.9 | |||||||||||||
Income before income taxes | 184.0 | 188.3 | 58.5 | 98.1 | |||||||||||||
Income tax expense | 52.6 | 50.8 | 8.0 | 19.2 | |||||||||||||
Net income | 131.4 | 137.5 | 50.5 | 78.9 | |||||||||||||
Attributable to: | |||||||||||||||||
Shareholders of the Company | 130.6 | 134.9 | 53.4 | 75.8 | |||||||||||||
Non-controlling interest | 0.8 | 2.6 | (2.9) | 3.1 | |||||||||||||
Net income | 131.4 | 137.5 | 50.5 | 78.9 | |||||||||||||
Earnings per share attributable to shareholders of the Company | |||||||||||||||||
Basic | $ | 1.30 | $ | 1.28 | $ | 0.52 | $ | 0.72 | |||||||||
Diluted | $ | 1.29 | $ | 1.28 | $ | 0.52 | $ | 0.72 |
Third quarter ended | Three quarters ended | ||||||||||||||||
December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Net income | 131.4 | 137.5 | 50.5 | 78.9 | |||||||||||||
Other comprehensive (loss) income | |||||||||||||||||
Items that will not be reclassified to earnings, net of tax: | |||||||||||||||||
Actuarial (loss) gain on post-employment obligation | (0.1) | — | (0.3) | 1.0 | |||||||||||||
Items that may be reclassified to earnings, net of tax: | |||||||||||||||||
Cumulative translation adjustment gain | 6.7 | 22.5 | 0.2 | 10.7 | |||||||||||||
Net (loss) gain on derivatives designated as cash flow hedges | (7.5) | (4.6) | (1.5) | 4.5 | |||||||||||||
Reclassification of net loss (gain) on cash flow hedges to income | 0.1 | 3.4 | (0.9) | 4.9 | |||||||||||||
Other comprehensive (loss) income | (0.8) | 21.3 | (2.5) | 21.1 | |||||||||||||
Comprehensive income | 130.6 | 158.8 | 48.0 | 100.0 | |||||||||||||
Attributable to: | |||||||||||||||||
Shareholders of the Company | 129.7 | 156.6 | 51.6 | 96.9 | |||||||||||||
Non-controlling interest | 0.9 | 2.2 | (3.6) | 3.1 | |||||||||||||
Comprehensive income | 130.6 | 158.8 | 48.0 | 100.0 |
December 31, 2023 |
January 1, 2023 |
April 2, 2023 |
|||||||||
Assets | $ | $ | $ | ||||||||
Current assets | |||||||||||
Cash | 154.3 | 344.2 | 286.5 | ||||||||
Trade receivables | 144.5 | 120.9 | 50.9 | ||||||||
Inventories | 478.4 | 482.0 | 472.6 | ||||||||
Income taxes receivable | 8.1 | 5.7 | 0.9 | ||||||||
Other current assets | 61.0 | 58.3 | 52.3 | ||||||||
Total current assets | 846.3 | 1,011.1 | 863.2 | ||||||||
Deferred income taxes | 90.3 | 67.7 | 67.5 | ||||||||
Property, plant and equipment | 177.2 | 128.5 | 156.0 | ||||||||
Intangible assets | 132.1 | 132.9 | 135.1 | ||||||||
Right-of-use assets | 272.7 | 275.6 | 291.8 | ||||||||
Goodwill | 76.5 | 65.0 | 63.9 | ||||||||
Other long-term assets | 6.8 | 22.2 | 12.5 | ||||||||
Total assets | 1,601.9 | 1,703.0 | 1,590.0 | ||||||||
Liabilities | |||||||||||
Current liabilities | |||||||||||
Accounts payable and accrued liabilities | 268.8 | 262.0 | 195.6 | ||||||||
Provisions | 55.0 | 46.6 | 21.6 | ||||||||
Income taxes payable | 14.5 | 31.8 | 31.5 | ||||||||
Short-term borrowings | 38.7 | 52.4 | 27.6 | ||||||||
Current portion of lease liabilities | 76.4 | 66.6 | 76.1 | ||||||||
Total current liabilities | 453.4 | 459.4 | 352.4 | ||||||||
Provisions | 37.2 | 36.7 | 36.5 | ||||||||
Deferred income taxes | 13.6 | 22.2 | 16.4 | ||||||||
Revolving Facility | — | — | — | ||||||||
Term Loan | 381.0 | 393.4 | 391.6 | ||||||||
Lease liabilities | 244.9 | 250.3 | 258.7 | ||||||||
Other long-term liabilities | 70.9 | 42.9 | 56.9 | ||||||||
Total liabilities | 1,201.0 | 1,204.9 | 1,112.5 | ||||||||
Equity | |||||||||||
Equity attributable to shareholders of the Company | 396.5 | 484.1 | 469.5 | ||||||||
Non-controlling interests | 4.4 | 14.0 | 8.0 | ||||||||
Total equity | 400.9 | 498.1 | 477.5 | ||||||||
Total liabilities and equity | 1,601.9 | 1,703.0 | 1,590.0 |
Third quarter ended | Three quarters ended | ||||||||||||||||
December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Operating activities | |||||||||||||||||
Net income | 131.4 | 137.5 | 50.5 | 78.9 | |||||||||||||
Items not affecting cash: | |||||||||||||||||
Depreciation and amortization | 32.2 | 27.0 | 92.0 | 79.2 | |||||||||||||
Income tax expense | 52.6 | 50.8 | 8.0 | 19.2 | |||||||||||||
Interest expense | 11.8 | 8.7 | 32.1 | 24.9 | |||||||||||||
Foreign exchange (gain) loss | (1.4) | (14.9) | (1.9) | 4.3 | |||||||||||||
Loss (gain) on disposal of assets | 0.1 | — | 0.1 | (0.1) | |||||||||||||
Share-based payment | 4.3 | 4.2 | 11.5 | 11.2 | |||||||||||||
Remeasurement of put option | 4.9 | (0.5) | 15.7 | 1.2 | |||||||||||||
Remeasurement of contingent consideration | (1.9) | (2.2) | (4.9) | (5.9) | |||||||||||||
234.0 | 210.6 | 203.1 | 212.9 | ||||||||||||||
Changes in non-cash operating items | 134.0 | 154.6 | (32.2) | (48.1) | |||||||||||||
Income taxes paid | (7.6) | (5.6) | (56.6) | (31.9) | |||||||||||||
Interest paid | (12.1) | (8.6) | (32.5) | (23.6) | |||||||||||||
Net cash from operating activities | 348.3 | 351.0 | 81.8 | 109.3 | |||||||||||||
Investing activities | |||||||||||||||||
Purchase of property, plant and equipment | (15.1) | (12.6) | (46.3) | (22.9) | |||||||||||||
Investment in intangible assets | (0.2) | (0.2) | (0.7) | (0.9) | |||||||||||||
Initial direct costs of right-of-use assets | — | — | (0.4) | (0.4) | |||||||||||||
Net cash (outlfow) inflow from business combination | (12.3) | — | (12.3) | 2.8 | |||||||||||||
Net cash used in investing activities | (27.6) | (12.8) | (59.7) | (21.4) | |||||||||||||
Financing activities | |||||||||||||||||
Mainland China Facilities (repayments) borrowings | (38.2) | (8.4) | (0.5) | 15.7 | |||||||||||||
Japan Facility (repayments) borrowings | (3.7) | 3.4 | 11.7 | 13.1 | |||||||||||||
Term Loan repayments | (1.0) | (1.0) | (3.0) | (3.0) | |||||||||||||
Revolving Facility repayments | (86.3) | (55.9) | — | (0.5) | |||||||||||||
Transaction costs on financing activities | 0.1 | — | (0.2) | — | |||||||||||||
Normal course issuer bid purchase of subordinate voting shares | (54.3) | (16.1) | (111.7) | (16.1) | |||||||||||||
Principal payments on lease liabilities | (21.0) | (17.2) | (49.7) | (44.5) | |||||||||||||
Issuance of shares | — | — | 0.1 | — | |||||||||||||
Net cash used in financing activities | (204.4) | (95.2) | (153.3) | (35.3) | |||||||||||||
Effects of foreign currency exchange rate changes on cash | 0.5 | 4.1 | (1.0) | 3.9 | |||||||||||||
Increase (decrease) in cash | 116.8 | 247.1 | (132.2) | 56.5 | |||||||||||||
Cash, beginning of period | 37.5 | 97.1 | 286.5 | 287.7 | |||||||||||||
Cash, end of period | 154.3 | 344.2 | 154.3 | 344.2 |
Third quarter ended | Three quarters ended | ||||||||||||||||||||||
CAD $ millions | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
|||||||||||||||||||
Net income | 131.4 | 137.5 | 50.5 | 78.9 | |||||||||||||||||||
Add (deduct) the impact of: | |||||||||||||||||||||||
Income tax expense | 52.6 | 50.8 | 8.0 | 19.2 | |||||||||||||||||||
Net interest, finance and other costs | 14.8 | 2.4 | 42.9 | 31.9 | |||||||||||||||||||
Operating income | 198.8 | 190.7 | 101.4 | 130.0 | |||||||||||||||||||
Net temporary store closure costs (a) | — | 0.8 | — | 3.2 | |||||||||||||||||||
Head office transition costs (c) | — | 1.5 | 0.8 | 4.7 | |||||||||||||||||||
Japan Joint Venture costs (e) | 2.3 | 4.1 | 2.4 | 8.3 | |||||||||||||||||||
Strategic initiatives (g) | 5.6 | — | 21.1 | — | |||||||||||||||||||
Net corporate restructuring costs (h) | — | — | 5.5 | — | |||||||||||||||||||
Legal proceeding costs (i) | — | — | — | 2.2 | |||||||||||||||||||
Paola Confectii Earn-Out costs (k) | 0.5 | — | 0.5 | — | |||||||||||||||||||
Other (l) | — | — | — | (0.9) | |||||||||||||||||||
Total adjustments | 8.4 | 6.4 | 30.3 | 17.5 | |||||||||||||||||||
Adjusted EBIT | 207.2 | 197.1 | 131.7 | 147.5 | |||||||||||||||||||
Adjusted EBIT margin | 34.0 | % | 34.2 | % | 13.5 | % | 16.0 | % |
Third quarter ended | Three quarters ended | ||||||||||||||||||||||
CAD $ millions | December 31, 2023 |
January 1, 2023 |
December 31, 2023 |
January 1, 2023 |
|||||||||||||||||||
Net income | 131.4 | 137.5 | 50.5 | 78.9 | |||||||||||||||||||
Add (deduct) the impact of: | |||||||||||||||||||||||
Net temporary store closure costs (a) (b) | — | 0.8 | — | 3.3 | |||||||||||||||||||
Head office transition costs (c) (d) | — | 2.0 | 1.2 | 5.9 | |||||||||||||||||||
Japan Joint Venture costs (e) | 2.3 | 4.1 | 2.4 | 8.3 | |||||||||||||||||||
Japan Joint Venture remeasurement loss (gain) on contingent consideration and put option (f) | 3.0 | (2.7) | 10.8 | (4.7) | |||||||||||||||||||
Strategic initiatives (g) | 5.6 | — | 21.1 | — | |||||||||||||||||||
Net corporate restructuring costs (h) | — | — | 5.5 | — | |||||||||||||||||||
Legal proceeding costs (i) | — | — | — | 2.2 | |||||||||||||||||||
Unrealized foreign exchange loss (gain) on Term Loan Facility (j) | 0.5 | (3.6) | — | 11.7 | |||||||||||||||||||
Paola Confectii Earn-Out costs (k) | 0.5 | — | 0.5 | — | |||||||||||||||||||
Other (l) | — | — | — | (0.9) | |||||||||||||||||||
11.9 | 0.6 | 41.5 | 25.8 | ||||||||||||||||||||
Tax effect of adjustments | (1.3) | (0.3) | (6.2) | (4.3) | |||||||||||||||||||
Deferred tax adjustment (m) | — | — | (0.5) | — | |||||||||||||||||||
Adjusted net income | 142.0 | 137.8 | 85.3 | 100.4 | |||||||||||||||||||
Adjusted net income attributable to non-controlling interest (n) | (3.4) | (3.3) | (3.6) | (4.4) | |||||||||||||||||||
Adjusted net income attributable to shareholders of the Company | 138.6 | 134.5 | 81.7 | 96.0 | |||||||||||||||||||
Weighted average number of shares outstanding | |||||||||||||||||||||||
Basic | 100,253,473 | 105,146,788 | 102,144,232 | 105,238,509 | |||||||||||||||||||
Diluted | 101,308,836 | 105,668,608 | 103,125,365 | 105,778,351 | |||||||||||||||||||
Adjusted net income per basic share attributable to shareholders of the Company |
$ | 1.38 | $ | 1.28 | $ | 0.80 | $ | 0.91 | |||||||||||||||
Adjusted net income per diluted share attributable to shareholders of the Company |
$ | 1.37 | $ | 1.27 | $ | 0.79 | $ | 0.91 |