Canada Goose Holdings Inc

Good day and thank you for standing by. Welcome to the Canada Goose first quarter fiscal 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to Patrick Fork. Thank you. Please go ahead.

Thank you and good morning, everyone. With me are Danny Reese, President and CEO, and Jonathan Sinclair, EVP and CFO. After prepared remarks from Danny and Jonathan, we will take your questions. These will be limited to one each to allow as many as possible to ask questions within the allotted time. This call, including the Q&A portion, includes forward-looking statements. Each forward-looking statement, including discussion of our Fiscal 22 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 this morning as well as in 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. The 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 our investor relations website. With that, I will turn the call over to Danny.

Thank you, Patrick, and good morning, everyone. I'm pleased to speak with you all today about our strong start to fiscal 2022 and the continued momentum we're seeing across the entire business. The results we delivered in Q1 demonstrate the global demand for our brand and our ability to operate in an improving, yet still evolving, retail environment. Heading into this quarter, we were well positioned after finishing fiscal 2021 with record revenue in our third and fourth quarters. Our business has shifted from recovery to growth, and that has continued into this quarter. Today, I'm going to cover our results and share highlights of how we are driving growth in key categories and across geographies. Looking at the quarter, our results were driven by strength across all channels and regions. Our global e-commerce revenue increased by more than 80% and low triple-digit growth in both APAC and EMEA. In North America, Canada led the way with a growth rate in the high 70s, and in the U.S., where the majority of our stores were open for the quarter, we saw strong e-commerce growth in the high 40s. This highlights not only our successful investments in our digital business, but also the strength of our global demand. Next, revenue increased significantly in all geographic regions. This is important to highlight as many of our stores across Europe and Canada were impacted by closures during the period. This performance underscores the functionality of our model and reinforces our ability to capture and serve demand in any environment. Specifically, in Canada, where we faced elevated closures in the quarter, revenue still grew by 126%, excluding PPE. We consider this a very positive indication of domestic demand. As traffic continues to improve, we expect to see that drive increased productivity in our stores, which would be incremental channel growth to the performance we have shown this quarter. Turning to our retail expansion, we've spoken previously about the opportunity we continue to see in mainland China and our strategic focus on growing our business there. We saw firsthand the opportunity ahead of us with our DTC revenue in mainland China increasing by 188% this quarter. Moving beyond Q1, we continue to build our business in mainland China, and over the past month, we've celebrated three new store openings in key markets in the region, with three more expected to follow this fall. As a growing global lifestyle brand, we continue to expand across geographies, launching new categories and products designed with intention, purpose, and functionality. As a Canada Goose brand continues to gain momentum, we are actively innovating on many fronts and investing in newness and expanding our apparel offering globally. Since our knitwear launch in 2017 and with the addition of our incredibly popular fleece category last year, our apparel business is expected to exceed $45 million in sales this fiscal. In only four years, we have successfully developed this fast-growing category into a meaningful business. and we expect that trajectory to continue. Building on that, our non-market business has shown strength overall, and in this quarter specifically, contributed roughly half of our DTC revenue. As I've spoken about in our last call, we plan to launch Canada Youth Footwear later this fall. Our intention is to define and develop this category in a way that no other brand can or has. I have great confidence in our team and in our ability to succeed in this category, just like we have with each of our previous category expansions, including Lightweight Down and Apparel. We have a proven track record at successfully building new categories into meaningful businesses for our brand. As I have said before, I believe that we have an incredible opportunity in front of us in footwear, and I cannot wait to introduce you to our offering very soon. continue to innovate across our assortment, and we've made a commitment to embed sustainability throughout our organization. As we laid out in our inaugural Sustainable Impact Strategy Report, we are transforming the way we do business to ensure that we're doing everything we can to create the future that we want to see in the world. With that focus, this June we announced that we would end the use of all fur in our products through a phased approach, We will end the purchase of FUR this year by December 2021, and we will end manufacturing with FUR no later than next year by December 2022. This decision was driven by our commitment to sustainability and our purpose-based platform, Human Nature. Our mission has always been to make products that deliver exceptional quality, protection from the elements, and perform the way our consumers need them to. And this transforms how we will continue to do just that. This path forward represents the culmination of both our long-term strategic planning and, importantly, the significant growth of our non-fur business. Currently, our non-fur business accounts for roughly half of our revenue. This has shifted significantly over the past few years. This has been intentional, planned and driven by our expanding non-fur parka offering lightweight down in spring categories and, as previously mentioned, our growing apparel business. This is a transformational change that has energized our business. I'm excited and I'm confident in this new direction and its ability to further accelerate our growth. In conclusion, this was another productive quarter where we found success by investing in the opportunities with the greatest impact for our business. This quarter also marked an important evolution for our brand, strengthening our commitment to a more sustainable future. And as we continue to move through the year, I'm really excited to share updates with you all on our full launch later this fall. And with that, I turn it over to Jonathan to go over the details of our financial results.