Canada Goose Holdings Inc. (NYSE:GOOS) Q2 2024 Earnings Call Transcript

Carrie Baker: On the first question, so PFAS. So this is a topic we’ve been talking about for many, many years. We obviously have a robust program in our sustainability. And you’ve seen our goals and objectives on that trajectory. So we’re well underway. I would say we’re feeling strong, ahead of schedule. So it’s something that we look at region by region. I would not say that’s the only factor that we look at. Our sustainability under our human nature platform is quite robust. And so, that’s one of our key factors and focuses as we come up to some of these deadlines that we see ahead.

Dani Reiss: I think that our vertically integrated supply chain and manufacturing infrastructure is one of our strengths and one of our core competencies, and it’s an area that we excel. And we feel that we’re very much ahead of the curve when it comes to these sorts of matters.

Jonathan Sinclair: When it comes to the growth in the performance in the second quarter, obviously, it was flat year-over-year. I think you have to remember is that quarter two is all about our wholesale business, really. And that DTC only starts to get going in earnest toward the end of the quarter, as you go through September. And so, as a result, any growth you see there doesn’t really show up in the weighting. And it’s, therefore, something that’s very much more about the wholesale business, which as we’ve said all along is going to be down year-over-year. Even though we were able to meet consumer request to ship somewhat sooner, the reality is that we still end up down year-over-year in wholesale and that produces an overall flat picture. The key numbers in that, though, is our DTC business is growing at double digits despite the dropping in comps. We’re still making headway in the growth in that business.

Ike Boruchow: But I’m asking about the other line. I just think of the friends and family event that happened a couple quarters ago, I was curious, like, what is going on that’s driving the higher revenue in other and then what should we expect the rest of the year?

Jonathan Sinclair: Again, as I’ve said before, friends and family for us is a relatively insignificant part of the total business. It was up CAD 8 million year-over-year in terms of sales for employees and friends family, generally speaking. It’s a level of business that is likely to, in our view, mirror last year as we go through the rest of the. And we see it as a normal business activity.

Operator: Our next question comes from Oliver Chen from TD Cowen.

Oliver Chen: [indiscernible] on certain macros and buying closer to needs in cold weather, just in your guidance range, it’d be helpful to understand what’s assumed on the higher end of guidance as well as the lower end. And as you thought about this consumer that’s prioritizing certain things, which parts of your assortment were most impacted. And second, you may have made a lot of progress and innovation and a lot of great call-outs about what’s happening forward with innovation and cultural relevance as well as product, what percentage mix is non-heavyweight down and how should we forecast that going forward, given all your initiatives?

Jonathan Sinclair: If I can comment, obviously, we expect a continuation of the macro. We’re not expecting that suddenly to pivot. I think what we would say is that, particularly in the US, remember that, really, we saw that bite quite suddenly and quite sharply as the holiday season began last year. So we’ve sort of become a bit more comfortable with that at the back part of Q3. I think when it comes to weather, obviously, we’re coming out of a very unseasonably warm September, which by popular account is record breaking across most geographies. We had not assumed an especially mild winter or especially cold winter in the range of guidance we’ve assumed normal weather conditions. Weather impacts this business in the sense that it prompts – the first cold snap prompts business.