Canada Goose has reported a revenue increase of 27.2 percent on an annualized basis for the third quarter ended Dec. 31, 2017, with revenues reaching 265.8 million Canadian dollars (€171.6m-$2105m) in the quarter. Adjusted net income of C$64.6 million (€41.8m-$51.2m) compares to an adjusted net income of C$44.9 million in the three months ended Dec. 31, 2016. The adjusted Ebitda grew from C$66.1 million in the third quarter of fiscal 2017 to C$94.7 million (€61.2m-$75.1m). The gross margin expanded to 63.6 percent as compared to 57.5 percent in the previous third fiscal quarter.
Wholesale revenues were C$134.2 million (€86.7m-$106.4m) as compared to C$137.0 million in the third quarter of fiscal 2017. In the first half of fiscal 2018, the company shipped around C$18 million (€11.6m-$14.3m) in customer orders that were originally planned for the third quarter. This was partially offset by strong demand in the wholesale channel.
Direct-to-consumer revenues nearly doubled, from C$72.0 million in the third quarter of fiscal 2017 to C$131.6 million (€85.1m-$104.4m), primarily driven by incremental revenues from four new company-operated retail stores and seven additional new e-commerce sites, which opened in fiscal 2018. Both the existing e-commerce sites and retail stores experienced continued strong performances, the company said. Canada Goose has stores in Toronto, New York, Chicago and London, and operates 11 online stores in North America and Europe.
Meanwhile, the company has separately announced the appointment of Jonathan Sinclair as its new finance head. Sinclair, who is currently chief financial officer at Jimmy Choo, will join Canada Goose sometime mid-year. He replaces John Black, who will be retiring.