Canada Goose Holdings Inc. (NYSE:GOOS) Q2 2020 Earnings Conference Call - Final Transcript

Nov 13, 2019 • 09:00 am ET

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Canada Goose Holdings Inc. (NYSE:GOOS) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Mariama and I will be your conference operator today. At this time, I would like to welcome everyone to the Canada Goose Second Quarter 2020 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

I would now like to turn the call over to Patrick Bourke, Senior Director, Investor Relations. You may begin your conference.

Executive
Patrick Bourke

Thank you and good morning, everyone. With me are Dani Reiss, President and CEO and Jonathan Sinclair, EVP and CFO. After prepared remarks from Dani and Jonathan, we will take your questions.

This call, including the Q&A portion, includes forward-looking statements. Each forward-looking statement including discussion of our fiscal 2020 outlook is subject to risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Certain material factors and assumptions were considered and applied in making these forward-looking statements. Additional information regarding these forward-looking statements, factors, and assumptions is available in our earnings press release issued this morning, as well as the Risk Factors section of our most recent annual report filed with the SEC and Canadian securities regulators. These documents are also available on the Investor Relations section of our website.

Forward-looking statements made on this call speak only as of today, and we undertake no obligation to update or revise any of these statements. Our commentary today will include certain non-IFRS financial measures, which are reconciled in the table at the end of our earnings press release issued this morning and available on the Investor Relations section of our website at canadagoose.com. With that, I will turn the call over to Dani.

Executive
Dani Reiss

Thanks, Patrick, and good morning, everyone. I am really pleased to tell you that the power of our brand and our business model pulled through despite a challenging external environment, and we delivered another strong set of results finished the first half. And here are the highlights. In the second quarter relative to last year, revenue grew by 27.7%, and adjusted EPS per diluted share increased 23.9%.

Even with the unrest in Hong Kong, revenue in Asia nearly doubled to CAD48.9 million. Revenue in the U.S. increased by 38.5% on a constant-currency basis. Revenue in Canada grew by 29.9%.

Against tough comparisons in our most developed market, this is a strong result. From a brand perspective, it is great to see customers at home embracing our lightweight down jackets and knitwear. From a channel perspective, wholesale led the way with its largest quarter, with revenue increasing by 22.9%. This was complemented by direct-to-consumer growth of 47.2%.

Like in the first quarter, we continued to fulfill partner requests for earlier shipments on the back of increased operational flexibility. With that as a starting point, there are a couple of specific topics that I would like to address. Let me start with Hong Kong. As I am sure you're aware, the situation has intensified