The following is a summary of the Canada Goose Holdings Inc. (GOOS) Q2 2025 Earnings Call Transcript:

Financial Performance:

• Q2 2025 revenue declined by 5% year-over-year due to a decrease in Direct-to-Consumer (DTC) revenue and a planned decrease in wholesale revenue.

• Gross profit decreased by 9%, with a gross margin decrease of 260 basis points to 61.3%, attributed to a higher proportion of non-heavy weight down revenue in the product mix.

• The company lowered the range for their full year fiscal 2025 guidance due to weaker consumer sentiment and underperformance in the DTC business.

Business Progress:

• Major initiatives include opening a new design studio in Paris, transitioning from the Snow Goose brand, and focusing on innovative and expanded product offerings across different categories.

• Investments in technology and infrastructure to support retail operations are ongoing, with the company operating a smaller number of stores but focusing on maximizing their potential.

• Strategic shift in marketing spend to the second half of the year to support upcoming product launches.

Opportunities:

• Launch of Haider's first capsule collection demonstrates significant brand and product evolution opportunities, leveraging heritage elements to innovate in core and newer product categories.

• Expansion into eyewear in partnership with Marchon Eyewear, aiming to capitalize on the brand's DNA of protection and craftsmanship.

• Focused efforts on improving wholesale channel revenue by better positioning the brand with strategic partners and reducing availability with non-aligned distributors.

Risks:

• The company forecasts a challenging consumer environment which has already impacted DTC sales with a 13% decline in second quarter year-over-year.

• Economic pressures and weaker consumer sentiment, particularly highlighted by underperformance in North American markets, pose risks to expected revenue growth and comp sales.

• Dependence on the holiday season for a significant portion of annual revenue amidst economic uncertainties could impact financial results.

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