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This presentation, and any discussion during or following this presentation, contain forward-looking statements, which are based on our current beliefs, expectations and assumptions regarding the future of our business, future plansand strategies, and other future conditions. These forward-looking statements include all matters that are not historical facts and include statements regarding our intentions, beliefs or current expectation concerning, among otherthings, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. Forward-looking statements can be identified by words such as “anticipate,” “believe,” “envision,”“estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “contemplate” and other similar expressions, although not all forward-looking statements contain theseidentifying words. We caution you that actual results and developments may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. Forward-looking statements involve risksand uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We believe that these risks and uncertainties include, but are not limited to, risks relating to: our ability to maintain thestrength of our brand or to expand our brand to new products and geographies; our ability to protect or preserve our brand image and proprietary rights; our ability to satisfy changing consumer preferences; an economic downturnpotentially affecting discretionary consumer spending; the impact the recent overall decline in the retail industry may have on our retail partners; our ability to compete in our markets effectively; our ability to manage our growtheffectively; poor performance during our peak season potentially affecting our operating results for the full year; our indebtedness potentially adversely affecting our financial condition; our ability to maintain relationships with our selectnumber of suppliers; our ability to manage our product distribution through our retail partners and international distributors; the success of our marketing programs; potential business interruption because of a disruption at ourheadquarters; and fluctuations in raw materials costs or currency exchange rates. Any references to forward-looking statements in this presentation include forward-looking information within the meaning of applicable Canadiansecurities laws. Please refer to “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our annual report on form 20-F under Item 1A "Risk Factors", current only as of its date and no undertaking to updatelanguage.
Unless otherwise indicated, all references in this presentation to “Canada Goose,” “we,” “our,” “us,” “the company” or similar terms refer to Canada Goose Holdings Inc. and its consolidated subsidiaries. “DTC” refers to our “Direct toConsumer” segment and sales channel.
Unless otherwise specified, all monetary amounts in this presentation are in Canadian dollars. Our consolidated financial statements have been prepared in accordance with IFRS and are presented in thousands of Canadian dollarsexcept where otherwise indicated. Our historical results are not necessarily indicative of the results that should be expected in any future period. Our fiscal year ends on March 31 of each calendar year.
Our most recent fiscal year, which we refer to as FY2018, ended on March 31, 2018. We refer to the years ended March 31, 2017 and March 31, 2016 as FY2017and FY2016, respectively.
This presentation makes reference to financial measures that are not defined under IFRS, including EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS and Adjusted Net Income. These measures do not have astandardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by others in our industry, and they should not be construed as an alternative to other financial measuresdetermined in accordance with IFRS. Please refer to the Appendix to this presentation for the definition and reconciliation to the nearest IFRS financial measure of non-IFRS financial measures.
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Fiscal 2018 Update
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Canada Goose Today
CHANNEL MIX57% wholesale | 43% DTC
$591 MILLIONFY2018 revenue
SOLD IN 38 COUNTRIES~2,200 points of distribution | 12 online markets | 7 retail stores
THREE-SEASON LIFESTYLE BRANDHelping people embrace the elements
2,600+ EMPLOYEESAround the world
MANUFACTURING FOOTPRINT5 in-house facilities and 34 subcontractors
Note: Number of employees as at 3/31/2018. Retail store count includes partner-operated store in Tokyo, Japan, which is accounted for in the Wholesale channel. Channel mix based on FY2018 figures.
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ADVANCE MARKET DEVELOPMENT
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PURSUE GLOBAL GROWTH
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ENHANCE PRODUCT OFFERING
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DRIVE HIGHER MARGINS
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517 bps y.o.y. Adj. EBITDA margin expansion(2)In-house production increased to 35% from 30%(2)
Added e-commerce sites in eight new marketsOpened five new retail stores across three continents(1)
35%+ revenue growth in all three geographic regions(2)Significant runway in existing and new markets
Continued leadership and innovation in parkasSuccessfully broadened collections and introduced knitwear
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Executing Our Growth Strategies
(1) Retail store count includes partner-operated store in Tokyo, Japan, which is accounted for in the Wholesale channel. (2) Based on FY2018 figures relative to FY2017. In-house production expressed as a % of total units.
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$0.43
$0.84
FY2017 FY2018
$81
$149
20.1% 25.2%
FY2017 FY2018
$125 $158
$87
$190$212
$348
52.5%58.8%
FY2017 FY2018
$289 $336
$115
$255$404
$591
FY2017 FY2018
Exceptional resultsREVENUE GROSS PROFIT ADJUSTED EBITDA ADJUSTED EPS
(C$ in millions) (C$ in millions / % margin) (C$ in millions / % margin) (C$ per diluted share)
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+46.4% +628 bps +517 bps +95.3%
DTC Wholesale Total
+121.3%
+16.5% +84.1%
+118.2%
+26.2%
+63.9%
+95.3%
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Our Story
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SAM DANIDAVID
Over 60 Years in the Making
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Authentic Brand
FIELD-TESTED IN THECOLDEST PLACES ON EARTH
TACTICAL ANDINDUSTRIAL HERITAGE
GOOSEPEOPLE
FILM ANDENTERTAINMENT
POLAR BEARSINTERNATIONAL
RESOURCE CENTRESPROGRAM
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Made in Canada
HERITAGE
The country from which we draw our inspiration
and expertise
IT MATTERS
Sets us apart on the international stage and in
the minds of our customers
QUALITY
Aggressively investing in producing premium, high
quality products
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l87% 84%
Source: Consumer survey conducted in 2017.(1) 87% of owners say they have positive feelings about Canada Goose as a brand. (2) 84% of owners indicate that, when making their next premium outerwear purchase, they would definitely or likely consider Canada Goose.
Beloved and Coveted Globally
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L O V E T H E B R A N D ( 1 )
H I G H R E P U R C H A S E I N T E N T ( 2 )
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Passionate and Committed TeamDANI REISS
President & Chief Executive Officer1997
JONATHAN SINCLAIR
EVP, Chief Financial Officer2018
20+ years of global financial and operational expiernce, including Chief Financial Officer and
Executive Vice President of Business Operations at Jimmy Choo
RICK WOOD
Chief Commercial Officer2017
Expert brand builder with 20+ years in global consumer apparel and retail industry, serving in
leadership roles at companies including VF Corporation and The North Face
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SPENCER ORR
SVP, Merchandising and Product Strategy2009
Recognized expert in product designand merchandising strategy with
12+ years of experience. Launched award-winning HyBridge Lite Jacket
JOHN MORAN
EVP, Manufacturing and Supply Chain2014
25+ years of experience in manufacturing, operations and sales, holding senior leadership roles
including Chief Operating Officer at North American apparel companies
CARRIE BAKER
EVP, Chief of Staff2012
15+ years of experience leading communications strategy and public affairs for top consumer
brands and Fortune 500 companies, including 12 years at a North American communications agency
DAVID FORREST
SVP, General Counsel2014
11+ years of experience working as General Counsel and Corporate Secretary of Thomas Cook North
America and practicing law at Osler, Hoskin & Harcourt LLP
ANA MIHALJEVIC
SVP, Planning and Sales Operations2015
Sales and planning expert with 10+years in the apparel industry working
with iconic brands including Ralph Lauren,Marc Jacobs and Jones Apparel Group
KARA MACKILLOP
EVP, People and Culture2014
15+ years of experience with high growth companies and top consumer brands
including Indigo Books & Music and Red Bull
SCOTT CAMERON
President, Greater China2015
Previously EVP, e-Commerce, Stores and Strategy. 8+ years at McKinsey & Co., most recently as principal, with focus on luxury
and apparel retail brands
PAT SHERLOCK
President, International2012
Previously SVP, Global Wholesale. Two decades of sales management
experience in sporting goodsand packaged goods industries in Canada,
including New Balance and InBev
LEE TURLINGTON
Chief Product Officer2016
Globally recognized for 25+years of leadership roles at
companies including Nike, Patagonia,The North Face and Fila
PENNY BROOK
Chief Marketing Officer2014
Global marketing expert with20+ years experience across luxury, fashion and
consumer goods industries at companies including Mulberry, Clarks and Philips
JACOB PAT
Chief Information Officer2013
15+ years transforming IToperations at companies including
OnX, Momentum AdvancedSolutions and Trimble Navigation
Note: Year shown under title reflects the date when the individual joined Canada Goose.
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Growth Strategies
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STRENGTHEN OUR BRAND
E-COMMERCE-LEDDTC ROLLOUT
An unfiltered window intoour brand, deployed as markets
become more developed
ENHANCEWHOLESALE NETWORK
Strategically deepening our network of best-in-class
retail partners
Advance Market Development
A B C
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E X E C U T I N G O U R P R O V E N A R P P O A C H
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Integrated digital-first marketing to drive awareness, consideration and conversion
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Strengthen our brand 1A
O R G A N I CS E E D I N G
G O O S EP E O P L E
F I L M C O L L A B S
G LO B A L-TO- LO CA L
D I G I TA L-F I R ST
A P P R OAC H
C O N S U M E RI N S I G H TS
A LWAYSO N
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M A K I N G I M P R E S S I O N S , N O T B U Y I N G T H E M
INTEGRATED MARKETINGA BRAND LIKE NO OTHER
BRING CANADA GOOSE TO THE WORLD
ACTIVATE LOCAL MARKETS
SUPPORT FULL BREADTH OF OFFERING
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TIP OF THE SPEARfor brand awareness
and market development
Complementary level ofreach and diversity
we would never replicate
Enhance Wholesale Network
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1B
STRATEGIC FOOTPRINTwith best-in-class luxury
and outdoor retailers
CONTINUED GROWTHin parallel with ongoing DTC
rollout
Long-term partnerships todeliver the best customer
experience and storytelling
Deeper and broaderwith existing accounts whileselectively adding new doors
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E-commerce-led DTC Rollout
$0 to $255MM in four years (43.1% of FY2018 sales)
1C
E-COMMERCE RETAIL
CanadaAug. 2014
United StatesSep. 2015
United KingdomSep. 2016
FranceSep. 2016
Toronto, YorkdaleOct. 2016
New York City, SoHoNov. 2016
LAUNCHED IN FY2018 OPENED IN FY2018
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Broadest assortment of our product offeringAvailable anytime
GermanySep. 2017
IrelandJun. 2017
SwedenAug. 2017
BelgiumJul. 2017
NetherlandsJul. 2017
AustriaSep. 2017
LuxemburgJul. 2017
Gathering place for fans around the world Personalized and immersive experiences
London, Regent StreetNov. 2017
Boston, Prudential CenterNov. 2017
Chicago, Magnificent MileOct. 2017
Calgary, Chinook CentreNov. 2017
(1) Partner-operated store in Tokyo, Japan, which is accounted for in the Wholesale channel.
Tokyo, Sendagaya(1)Nov. 2017
ChinaJan. 2018
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$92
$117
$178
FY2016 FY2017 FY2018
$103
$132
$184
FY2016 FY2017 FY2018
$95
$155
$229
FY2016 FY2017 FY2018
EUROPE Present in every major Western European market,
with e-commerce in 9 countries Strong traction with lighter weight three-season
productsASIA Strong performance in Japan and Korea with
world-class distributors Accelerating development in Greater China with
regional office and ongoing DTC expansion
Canada revenue Rest of World revenueUnited States revenue(C$ in millions) (C$ in millions) (C$ in millions)
S U C C E S S F U L T R A C K R E C O R D W I T H S T R O N G M O M E N T U M
2 Pursue Global Growth
Continued growth in most developed market with highest brand awareness
Strong DTC performance online and in-store, with focus on further channel expansion
Strong performance in Northeast and Midwest across channels, with further penetration upside
Earlier stage opportunities in less developed regions such as the Pacific Northwest
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(Jacket volume per 1,000 addressable customers(1))
Select examples of FY2018 jacket penetration by country
Note: Western Europe includes United Kingdom, France, Germany, Switzerland, the Netherlands, Italy, Sweden, Finland, Austria, Norway, Spain, Belgium and Denmark.(1) Addressable customers defined as living above the 37th parallel with >$100,000 of household income.
L A R G E P E N E T R A T I O N U P S I D E A C R O S S M A R K E T S
Pursue Global Growth21
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52.2
10.26.0 5.0
1.4
Canada Japan and South Korea United States Western Europe Greater China
Achieving 35% of Canadian penetration would more than triple unit demand
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3 Enhance Product Offering
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G I V I N G P E O P L E N E W W A Y S T O E X P E R I E N C E O U R B R A N D
WINTER FALL AND SPRING BEYOND OUTERWEAR
Extreme-30°C & Below-25°F & Below
TEI 5Enduring
-15°C / -25°C5°F / -15°F
TEI 4Fundamental-10°C / -20°C
15°F / -5°F
TEI 3Versatile
0°C / -15°C30°F / 5°F
TEI 2Lightweight
5°C / -5°C40°F / 25°F
TEI 1 KNITWEAR
Continued innovation and new styles New styles, uses and climates Product-led and function-first
ACCESSORIES
OUTERWEAR OTHER CATEGORIES
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Drive Higher Margins4
Continue to expandDTC channel
Greater contribution to operating income vs.
wholesale
Capture full valueof our existing products
Incrementally introduce new styles at higher price points
Optimize manufacturingmix and increase efficiency
to capture incrementalgross margin
IN-HOUSEMANUFACTURING
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PRICEOPTIMIZATION
CHANNELMIX
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Financials
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Strong revenue growth driven bymultiple levers with significant runway
Powerful business model withimproving margin profile and strong earnings growth
Seasonal revenue model with wholesale visibility
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Summary Financial Highlights
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$95$155
$229$103
$132
$184
$92
$117
$178
$291
$404
$591
FY2016 FY2017 FY2018
Canada United States Rest of World
$258 $289$336
$33
$115
$255
$291
$404
$591
FY2016 FY2017 FY2018
Wholesale DTC
Revenue by channel Revenue by geography
Across channels, geographies and products
Strong growth with multiple levers(C$ in millions) (C$ in millions)
25.2% 41.6% 47.7%Constant FX growth(1)
2 3(1) Non-IFRS financial measure which serves as a supplement to our reported operating results.
25.2% 41.6% 47.7%Constant FX growth(1)
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$100 $165$200
34.4%40.9%
33.8%
FY2016 FY2017 FY2018
$146 $212$348
50.1% 52.5%58.8%
FY2016 FY2017 FY2018
Gross profit SG&A
Shift in mix towards higher margin DTC sales Increases driven by DTC channel expansion and corporate overhead to support growth, with partial offset from IPO related expenses which did not recur
DTC* 11%* % of revenue
29%(C$ in millions / % margin) (C$ in millions / % of sales)
Powerful Business Model withImproving Margin Profile
Adjusted EBITDA Adjusted Net Income(C$ in millions / % margin) (C$ in millions)
Significant margin expansion while building out DTC channel and investing in growth
Incremental depreciation from PP&E investments offset by incremental profits Growth across both channels and margin expansion driven by mix shift
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$54$81
$14918.7%20.1%
25.2%
FY2016 FY2017 FY2018
$30 $44
$94
FY2016 FY2017 FY2018
43%
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Majority of order bookreceived
Q3 ended December 31st Q4 ended March 31st Q1 ended June 30th Q2 ended September 30th Q3 ended December 31st Q4 ended March 31st
Ope
ratio
ns
M a j o r i t y o f re ve n u eg e n e ra t e d i n Q 2 a n d Q 3
Pe a k wo r k i n gc a p i t a l
Linear production throughout the year
Peak selling season Shoulder quarters
Majority of order bookfulfilled
Who
lesa
le
M A J O R I T Y O F W H O L E S A L E O R D E R B O O K I S F I L L E D P R I O R T O T H E B E G I N N I N G O F T H E F I S C A L Y E A R
P ro a c t i ve l y m a n a g eF X ex p o s u re
DT
C
Low selling season resulting in inventory buildup High sales volumeHigh sales volume
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Seasonal revenue model withwholesale visibility
Peak selling season
Inventory peaks Majority of order bookfulfilledMajority of order book
received
Shoulder quarters
High shipmentvolume
High shipmentvolume
Low shipmentvolume
Low shipmentvolume
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($7)
$34
$66
($11) ($14)
$46
$95
$22
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018
$16
$128
$209
$51 $28
$172
$266
$125
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018
Wholesale DTC
Quarterly revenue
DTC growth shifting more sales into Q3 and Q4 while reducing working capital seasonality
(C$ in millions )
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Quarterly Adjusted EBITDA(C$ in millions )
Seasonal revenue model withwholesale visibility
DTC** % of revenue
4% 34% 71% 29% 12% 50%8% 76%
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Key Financial Drivers
WHOLESA LE
Volume growth driven primarily byincreased penetration of existing accounts
Continued geographic marketdevelopment
Price optimization
DIR ECT TO CONS UM ER
Volume growth across existing retail stores and e-commerce sites
New retail stores Increased e-commerce access in
new markets Price optimization
REVENUE
DTC accretive to operating income due to higher gross margin profile
Growth investments including IT and Greater China regional office
Fees to operating partners on DTC sales in China
Expanding number of retail stores operating in off-peak periods
SG&A
New retail stores Manufacturing capacity expansion IT
CAPEX
Channel mix shift Price optimization In-house manufacturing
GROSS PROFIT
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Appendix
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(C$ in millions)
FY2016 FY2017 FY2018Net income $26.5 $21.6 $96.1
Add impact of:
Income tax expense 6.5 8.9 29.2
Net interest and other finance costs 8.0 10.0 12.9
Depreciation and amortization 5.9 8.4 14.2
EBITDA $46.9 $48.9 $152.3Add impact of:
Bain Capital management fees 1.1 10.3 –
Transaction costs 0.3 10.0 1.5
Purchase accounting adjustments – – –
Unrealized (gain) / loss on derivatives (4.4) 4.4 –
Unrealized foreign exchange (gain) / loss on term loan – (0.1) (6.8)
International restructuring costs 6.9 0.2 –
Share-based compensation 0.5 5.9 0.9
Agent terminations and other 3.1 – –
Non-cash rent expense – 1.4 1.1
Adjusted EBITDA $54.3 $81.0 $149.2
Adjusted EBITDA Reconciliation
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Data
(C$ in millions)
FY2016FY2017FY2018
Net income$26.5$21.6$96.1
Add impact of:
Income tax expense6.58.929.2
Net interest and other finance costs 8.010.012.9
Depreciation and amortization5.98.414.2
EBITDA$46.9$48.9$152.3
Add impact of:
Bain Capital management fees1.110.3–
Transaction costs0.310.01.5
Purchase accounting adjustments–––
Unrealized (gain) / loss on derivatives(4.4)4.4–
Unrealized foreign exchange (gain) / loss on term loan–(0.1)(6.8)
International restructuring costs6.90.2–
Share-based compensation0.55.90.9
Agent terminations and other3.1––
Non-cash rent expense–1.41.1
Adjusted EBITDA$54.3$81.0$149.2
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(C$ in millions)
FY2016 FY2017 FY2018Net income $26.5 $21.6 $96.1
Add impact of:
Bain Capital management fees 1.1 10.3 –
Transaction costs 0.3 10.0 1.5
Purchase accounting adjustments – – –
Unrealized (gain) / loss on derivatives (4.4) 4.4 –
Unrealized foreign exchange (gain) / loss on term loan – (0.1) (6.8)
International restructuring costs 6.9 0.2 –
Share-based compensation 0.5 5.9 0.9
Agent terminations and other 3.1 – –
Non-cash rent expense – 1.4 1.1
Amortization on intangible assets acquired by Bain Capital 2.2 2.2 1.4
Non-cash revaluation of carrying value – (5.9) –
Total adjustments $9.6 $28.3 ($1.8)
Tax effect of adjustments (2.4) (5.8) (0.2)
Tax effect of one-time intercompany transaction (3.5) – –
Adjusted net income $30.1 $44.1 $94.1
Weighted average number of shares outstanding (diluted) 101,692,301 102,023,196 111,519,238Adjusted EPS per diluted share $0.30 $0.43 $0.84
Adjusted Net Income Reconciliation
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Data
(C$ in millions)
FY2016FY2017FY2018
Net income$26.5$21.6$96.1
Add impact of:
Bain Capital management fees1.110.3–
Transaction costs0.310.01.5
Purchase accounting adjustments–––
Unrealized (gain) / loss on derivatives(4.4)4.4–
Unrealized foreign exchange (gain) / loss on term loan–(0.1)(6.8)
International restructuring costs6.90.2–
Share-based compensation0.55.90.9
Agent terminations and other3.1––
Non-cash rent expense–1.41.1
Amortization on intangible assets acquired by Bain Capital2.22.21.4
Non-cash revaluation of carrying value –(5.9)–
Total adjustments$9.6$28.3($1.8)
Tax effect of adjustments(2.4)(5.8)(0.2)
Tax effect of one-time intercompany transaction(3.5)––
Adjusted net income$30.1$44.1$94.1
Weighted average number of shares outstanding (diluted)101,692,301102,023,196111,519,238
Adjusted EPS per diluted share$0.30$0.43$0.84
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Slide Number 1Slide Number 2Fiscal 2018 UpdateCanada Goose TodayExecuting Our Growth StrategiesSlide Number 6Our StorySlide Number 8Authentic BrandMade in CanadaBeloved and Coveted GloballyPassionate and Committed TeamGrowth StrategiesSlide Number 14Strengthen our brand Slide Number 16E-commerce-led DTC RolloutSlide Number 18Slide Number 19Slide Number 20Drive Higher MarginsFinancialsSlide Number 23Slide Number 24Slide Number 25Slide Number 26Slide Number 27Key Financial DriversAppendixAdjusted EBITDA ReconciliationAdjusted Net Income ReconciliationSlide Number 32