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Canada Goose Holdings Inc.$64.30($.47)(.73%)

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 Canada Goose Reports Results for Second Quarter Fiscal Year 2018
   Thursday, November 09, 2017 6:45:01 AM ET

--Second Quarter Fiscal 2018 Highlights (in Canadian dollars):

--Total revenue increased $44.4 million to $172.3 million, representing year-over-year growth of 34.7%

--Gross margin expanded to 50.5% from 46.4% in the prior year

--Adjusted EBITDA was $46.4 million, compared to $33.8 million in the prior year, representing year-over-year growth of 37.3%

--Net income was $37.1 million, or $0.33 per diluted share, and adjusted net income was $32.9 million, or $0.29 per diluted share

Canada Goose Holdings Inc. ("Canada Goose" or the "Company") today announced financial results for its second quarter ended September 30, 2017. The Company’s Management’s Discussion and Analysis and Unaudited Condensed Consolidated Interim Financial Statements for the three and six month periods ended September 30, 2017 will be filed on SEDAR at www.sedar.com, the EDGAR section of the U.S. Securities and Exchange Commission website at www.sec.gov and posted on the Company’s website at investor.canadagoose.com.

"Our performance reflects the power of our brand around the world and our disciplined approach to executing our growth strategies. We have opened e-commerce sites in all seven of the new markets planned for fiscal 2018 and we remain on-track to have seven world-class retail destinations in operation in the third quarter of fiscal 2018, including our recently opened stores in Chicago and Tokyo. I am also encouraged by the response to our first knitwear collection which embodies our function-first design philosophy and stays true to our authentic utilitarian aesthetic," stated Dani Reiss, President & Chief Executive Officer. "With strong results across channels, geographies and categories, we continue to drive awareness and penetration while inspiring those who already know and love our brand. Most importantly, we remain deeply committed to building an enduring brand for the long term."

Fiscal 2018 Second Quarter Results (in Canadian dollars, compared to the same period in Fiscal 2017):

-- Total revenue increased by $44.4 million from $127.9 million to $172.3 million in the second quarter of fiscal 2017, representing year-over-year growth of 34.7%. -- Wholesale revenue was $152.1 million as compared to $122.4 million in the second quarter of fiscal 2017, driven by growth across all regions. In the quarter, revenue of approximately $13 million, which was originally expected to be earned in the third quarter, was pulled forward . Enabled by increased efficiency in manufacturing and sales planning, shipment timing was accelerated in response to requests from retail partners approaching their peak selling season. Through the first half of fiscal 2018, our pull-forward revenue in the wholesale channel was approximately $18 million.

-- Direct-to-consumer revenue was $20.3 million as compared to $5.5 million in the second quarter of fiscal 2017, driven by strong growth in our North American e-commerce business and incremental revenue from new retail stores and e-commerce sites which were not operating in the same period last year.

-- Gross profit increased to $87.1 million from $59.3 million in the second quarter of fiscal 2017. As a percentage of total revenue, gross profit was 50.5% compared to 46.4% in the second quarter of fiscal 2017. -- Wholesale gross profit was $72.2 million, a gross margin of 47.4%, as compared to $55.5 million a gross margin of 45.4%, in the second quarter of fiscal 2017. The increase in wholesale gross margin was the result of a shift in sales to higher margin geographies, lower cost of purchases in U.S. dollars and lower inventory reserves.

-- Direct-to-consumer gross profit increased to $14.9 million, a gross margin of 73.7% from $3.8 million, a gross margin of 69.2%, in the second quarter of fiscal 2017.

-- Selling, general and administrative expenses were $36.5 million compared to $30.2 million in the second quarter of fiscal 2017, driven by the costs of retail stores in Toronto and New York which were not operating in the same period last year, as well as investments across the business to support continued growth. These increases were partially offset by an unrealized foreign exchange gain of $5.8 million on the term loan and a timing shift in marketing investments to the remainder of fiscal 2018.

-- Adjusted EBITDA was $46.4 million compared to $33.8 million in the prior year, representing year-over-year growth of 37.3%.

-- The effective tax rate was 16.8% compared to 20.7% in the second quarter of fiscal 2017 and a statutory tax rate of 25.4%. The decrease in the effective tax rate was primarily driven by the non-taxable portion of the $5.8 million unrealized foreign exchange gain and the timing of taxable income in jurisdictions with statutory tax rate differences.

-- Net income for the second quarter was $37.1 million, or $0.33 per diluted share, compared to net income of $20.0 million, or $0.20 per share, in the second quarter of 2017.

-- Adjusted net income per diluted share for the second quarter of fiscal 2018 was $0.29, based on 111.5 million diluted shares outstanding, compared to an adjusted net income per diluted share of $0.23, based on 101.7 million diluted shares outstanding in the second quarter of fiscal 2017. Adjusted pro forma net income per share for the second quarter of fiscal 2017, which includes the effect of the Initial Public Offering ("IPO") in the calculation of the weighted average number of shares outstanding as if the IPO had occurred at the beginning of fiscal 2017, was $0.22 per share based on 106.3 million shares.

Revised Fiscal 2018 Outlook

Based on stronger than expected growth across our business, with a particular contribution from our direct-to-consumer segment, the Company expects fiscal 2018 results to exceed the long-term and fiscal year outlook which was originally provided with the release of fourth quarter and fiscal year 2017 results on June 2, 2017.

For fiscal 2018, the Company currently expects:

-- Annual revenue growth on a percentage basis of at least 25% versus the previous expectation of mid-to-high teens;

-- Adjusted EBITDA margin expansion of at least 50 basis points versus the previous expectation of flat to modestly expanding; and

-- Annual growth in adjusted net income per diluted share on a percentage basis of at least 35% versus the previous expectation of approximately 20%. This assumes year-over-year comparison to adjusted net income per pro forma diluted share of $0.41 in fiscal 2017 and weighted average diluted shares outstanding of 110.9 million for fiscal 2018.

Conference Call Information

A conference call to discuss second quarter fiscal 2018 results is scheduled for today, November 9, 2017, at 9:00 a.m. Eastern Time. Dani Reiss, President and Chief Executive Officer and John Black, Chief Financial Officer, will host the conference call. Those interested in participating in the call are invited to dial (866) 393-4306 or (734) 385-2616 if calling internationally. Please dial in approximately 10 minutes prior to the start of the call and reference Conference ID 5093389 when prompted. A live audio webcast of the conference call will be available online at http://investor.canadagoose.com .

About Canada Goose

Founded in a small warehouse in Toronto, Canada in 1957, Canada Goose has grown into one of the world’s leading makers of performance luxury apparel. Every collection is informed by the rugged demands of the Arctic and inspired by relentless innovation and uncompromised craftsmanship. From Antarctic research facilities and the Canadian High Arctic, to the streets of New York, London, Milan, Paris, and Tokyo, people are proud to wear Canada Goose products. Employing more than 2,000 people worldwide, Canada Goose is a recognized leader for its Made in Canada commitment, and is a long-time partner of Polar Bears International. Visit canadagoose.com for more information.

Note Regarding Non-IFRS Financial Measures

This press release includes references to adjusted net income, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income per share and per diluted share, and adjusted pro forma net income per share and per diluted share. The Company presents these measures because its management uses these as supplemental measures in assessing its operating performance, and believes they are helpful to investors, securities analysts and other interested parties, in evaluating the Company’s performance. The measures referenced above are not measurements of financial performance under IFRS and they should not be considered as alternatives to measures of performance derived in accordance with IFRS. In addition, these measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. These measures have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing the Company’s results as reported under IFRS. The Company’s definitions and calculations of these measures are not necessarily comparable to other similarly titled measures used by other companies. These non-IFRS financial measures are defined and reconciled to the most comparable IFRS measures in the tables at the end of this press release.

Cautionary Note Regarding Forward-Looking Statements

The foregoing financial information as at and for the three and six months ended September 30, 2017 are unaudited and subject to quarter-end and year-end adjustments in connection with the completion of our customary financial closing procedures. Such changes could be material.

This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "forecast," "goal," "project," and other words of similar meaning. These forward-looking statements address various matters including our growth plans and anticipated financial performance for fiscal 2018, which are referred to under the heading Revised Fiscal 2018 Outlook. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, our expectations regarding industry trends, our business plan and growth strategies, our expectations regarding seasonal trends, our ability to implement our growth strategies, our ability to keep pace with changing consumer preferences, our ability to maintain the strength of our brand and protect our intellectual property, as well as the risks identified under the heading "Risk Factors" in our Annual Report on Form 20-F for the fiscal year ended March 31, 2017, and filed with the Securities and Exchange Commission ("SEC"), and the securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada ("Canadian securities regulatory authorities"), as well as the other information we file with the SEC and Canadian securities regulatory authorities. We caution investors not to rely on the forward-looking statements contained in this press release when making an investment decision in our securities. You are encouraged to read our filings with the SEC, available at www.sec.gov, and our filings with Canadian securities regulatory authorities available at www.sedar.com for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this release, and we undertake no obligation to update or revise any of these statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                      
Condensed Consolidated Interim Statements of Income and
Comprehensive Income
(unaudited)
(in thousands of Canadian dollars, except per share amounts)
                                                                                                                                            
                                                                                                                                                            Three months ended                                                                                                                 Six months ended
                                                                                                                                                                  September 30                                                                                                                     September 30
                                                                                                 2017                               2016                                 2017                               2016  
                                                                   -------------------- ----------------------------------------------------- ----------------------------------------------------- -------------------- ----------------------------------------------------- -----------------------------------------------------
Revenue                                                                                     172,330                            127,935                                                                    200,535                            143,630
Cost of sales                                                             85,237          68,601           100,200          79,637    
                                                                   -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------- -------------------------------- -------------------- -------------------------------- --------------------
Gross profit                                                                                 87,093                                                59,334                                                                    100,335                                                63,993
  Gross margin                                                                                 50.5                    %                             46.4                    %                                                  50.0                    %                             44.6                    %
Selling, general and administrative expenses                                                 36,545                                                30,172                                                                     62,377                                                48,265
  SG&A expenses as % of revenue                                                                21.2                    %                             23.6                    %                                                  31.1                    %                             33.6                    %
Depreciation and amortization                                              2,314           1,490             4,482           2,936    
                                                                   -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------- -------------------------------- -------------------- -------------------------------- --------------------
Operating income                                                                             48,234                                                27,672                                                                     33,476                                                12,792
  Operating income as % revenue                                                                28.0                    %                             21.6                    %                                                  16.7                    %                              8.9                    %
Net interest and other finance costs                                       3,599           2,438             6,691           5,533    
                                                                   -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------- -------------------------------- -------------------- -------------------------------- --------------------
Income before income taxes                                                                   44,635                                                25,234                                                                     26,785                                                 7,259
Income tax expense                                                         7,508           5,216             1,747           1,277    
                                                                   -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------- -------------------------------- -------------------- -------------------------------- --------------------
  Effective tax rate                                                                           16.8                    %                             20.7                    %                                                   6.5                    %                             17.6                    %
Net income                                                                                   37,127                                                20,018                                                                     25,038                                                 5,982
Other comprehensive income (loss)                                          1,259            (415 )                              1,301            (407 )                     
                                                                   -------------------- -------------------------------- -------------------- -------------------------------- -------------------- -------------------- -------------------------------- -------------------- -------------------------------- --------------------
Total comprehensive income                                                38,386          19,603            26,339           5,575    
                                                                   ==================== ================================ ==================== ================================ ==================== ==================== ================================ ==================== ================================ ====================
Earnings per share
Basic                                                                                       $  0.35                                               $  0.20                                                                    $  0.23                                               $  0.06
Diluted                                                                     0.33            0.20              0.23            0.06    
                                                                   ==================== ================================ ==================== ================================ ==================== ==================== ================================ ==================== ================================ ====================
Weighted average number of shares outstanding
  Basic                                                                                 106,992,382                                           100,000,000                                                                106,747,784                                           100,000,000
  Diluted                                                                               111,478,881                                           101,704,270                                                                110,700,260                                           101,702,032
Other data: (1)
EBITDA                                                                                       51,181                                                29,705                                                                     39,486                                                16,724
Adjusted EBITDA                                                                              46,399                                                33,790                                                                     32,833                                                26,308
Adjusted EBITDA margin                                                                         26.9                    %                             26.4                    %                                                  16.4                    %                             18.3                    %
Adjusted net income                                                                          32,877                                                23,740                                                                     19,647                                                14,248
Adjusted net income per diluted share                                                       $  0.29                                               $  0.23                                                                    $  0.18                                               $  0.14
                                                                                                                                                                                                                                                                                                                 

(1) EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per share and per diluted share are non-IFRS financial measures. See -- "Note Regarding Non-IFRS Financial Measures" for a description of these measures and a reconciliation to the nearest IFRS measure

                                                                                                                                                                                           
                                                                                                                                                                                           
Condensed Consolidated Interim Statements of Financial Position
(unaudited)
As at September 30, 2017 and March 31, 2017
(in thousands of Canadian dollars)
                                                                                 
                                                                                                                          September 30                                           March 31
                                                                                                               2017         2017  
                                                                                     -------------------- ------------------------------------------------- -------------------- -------- --------------------
Assets                                                                                                                               $                                                  $
Current assets
Cash                                                                                                       13,314                                                                   9,678
Trade receivables                                                                                          99,587                                                                   8,710
Inventories                                                                                               154,464                                                                 125,464
Income taxes receivable                                                                                     3,809                                                                   4,215
Other current assets                                                                    12,144         15,156  
                                                                                     -------------------- ------- -------------------- -------------------- -------------------- -------- --------------------
Total current assets                                                                                      283,318                                                                 163,223
                                                                                                                                                                                           
Deferred income taxes                                                                                      10,217                                                                   3,998
Property, plant and equipment                                                                              46,096                                                                  36,467
Intangible assets                                                                                         134,656                                                                 131,912
Goodwill                                                                                45,269         45,269  
                                                                                     -------------------- ------- -------------------- -------------------- -------------------- -------- --------------------
Total assets                                                                           519,556        380,869  
                                                                                     ==================== ======= ==================== ==================== ==================== ======== ====================
                                                                                                                                                                                           
Liabilities
Current liabilities
Accounts payable and accrued liabilities                                                                   63,810                                                                  58,223
Provisions                                                                               6,914          6,046  
                                                                                     -------------------- ------- -------------------- -------------------- -------------------- -------- --------------------
Total current liabilities                                                                                  70,724                                                                  64,269
                                                                                                                                                                                           
Provisions                                                                                                 10,225                                                                   9,526
Deferred income taxes                                                                                      13,439                                                                  10,888
Revolving facility                                                                                        116,775                                                                   6,642
Term loan                                                                                                 131,285                                                                 139,447
Other long-term liabilities                                                              3,673          3,929  
                                                                                     -------------------- ------- -------------------- -------------------- -------------------- -------- --------------------
Total liabilities                                                                                         346,121                                                                 234,701
                                                                                                                                                                                           
Shareholders’ equity                                                                   173,435        146,168  
                                                                                     -------------------- ------- -------------------- -------------------- -------------------- -------- --------------------
Total liabilities and shareholders’ equity                                             519,556        380,869  
                                                                                     ==================== ======= ==================== ==================== ==================== ======== ====================
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                
Condensed Consolidated Interim Statements of Cash Flows
(unaudited)
For the six months ended September 30
(in thousands of Canadian dollars)
                                                                                                              
                                                                                                                         2017                                    2016  
                                                                                        -------------------- -------------------------------------------------------- -------------------- --------------------------------------------------------
                                                                                                                                               $                                                                             $
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                                                                           25,038                                                                         5,982
Items not affecting cash
  Depreciation and amortization                                                                                       6,010                                                                         3,932
  Income tax expense                                                                                                  1,747                                                                         1,277
  Interest expense                                                                                                    6,574                                                                         4,486
  Unrealized (gain) loss on forward contracts                                                                          (442 )                                                                         120
  Unrealized foreign exchange gain                                                                                   (9,304 )                                                              --
  Write off of deferred financing charges on refinancing revolving                                           --                                                                           946
  facility
  Share-based compensation                                                                           721                1,499    
                                                                                        -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- --------------------
                                                                                                                     30,344                                                                        18,242
Changes in non-cash operating items                                                                                (112,681 )                                                                     (76,856 )
Income taxes paid                                                                                                    (5,411 )                                                                     (12,353 )
Interest paid                                                                                     (5,214 )                                (1,444 )                     
                                                                                        -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- --------------------
Net cash used in operating activities                                                            (92,962 )                               (72,411 )                     
                                                                                        -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- --------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment                                                                            (9,175 )                                                                     (11,000 )
Investment in intangible assets                                                                                      (3,473 )                                                                      (3,971 )
Business combination                                                                                (560 )                                  (500 )                     
                                                                                        -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- --------------------
Net cash used in investing activities                                                            (13,208 )                               (15,471 )                     
                                                                                        -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- --------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on revolving facility                                                                                    110,036                                                                       146,790
Repayment of credit facility                                                                                 --                                                                       (55,203 )
Deferred financing fees on term loan syndication                                                                       (437 )                                                              --
Exercise of stock options                                                                            207       --    
                                                                                        -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- --------------------
Net cash from financing activities                                                               109,806               91,587    
                                                                                        -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- --------------------
Increase in cash                                                                                                      3,636                                                                         3,705
Cash, beginning of period                                                                          9,678                7,226    
                                                                                        -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- --------------------
Cash, end of period                                                                               13,314               10,931    
                                                                                        ==================== ============== ==================== ==================== ==================== ============== ==================== ====================
                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                      
Reconciliation of Non-IFRS Measures
The tables below reconciles net income to EBITDA, adjusted EBITDA,
and adjusted net income for the periods presented:
                                                                                                                                                                     
CAD $000s                                                                                                                                                                                               Three months ended                                                                                                                       Six months ended
(unaudited)                                                                                                                                                                                                   September 30                                                                                                                           September 30
                                                                                                                     2017               2016                 2017               2016    
                                                                                                         -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- --------------------
Net income                                                                                                                            37,127                                20,018                                                                        25,038                                 5,982
Add the impact of:
Income tax expense                                                                                                                     7,508                                                    5,216                                                                         1,747                                                    1,277
Net interest and other finance costs                                                                                                   3,599                                                    2,438                                                                         6,691                                                    5,533
Depreciation and amortization                                                                                                          2,947                                 2,033                                                      6,010                                 3,932  
                                                                                                                              -------------- --------------------                      -------------- --------------------                                           -------------- --------------------                      -------------- --------------------
EBITDA                                                                                                                                51,181                                                   29,705                                                                        39,486                                                   16,724
Add (deduct) the impact of:
Bain Capital management fees (a)                                                                                              --                                                       63                                                                --                                                      212
Transaction costs (b)                                                                                                                    218                                                    1,910                                                                         1,546                                                    2,734
Unrealized gain on derivatives (c)                                                                                            --                                           --                                                                --                                                    4,422
Unrealized foreign exchange gain on Term Loan Facility (d)                                                                            (5,814 )                                         --                                                                        (9,580 )                                         --
International restructuring costs (e)                                                                                         --                                                       80                                                                --                                                      175
Share-based compensation (f)                                                                                                             310                                                    1,374                                                                           390                                                    1,499
Agent terminations and other (g)                                                                                              --                                           --                                                                --                                                     (116 )
Non-cash rent expense (h)                                                                                             504                658                  991                658    
                                                                                                         -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- --------------------
Adjusted EBITDA                                                                                                    46,399             33,790               32,833             26,308    
                                                                                                         ==================== ============== ==================== ==================== ============== ==================== ==================== ==================== ============== ==================== ==================== ============== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                   
CAD $000s                                                                                                                                                                                               Three months ended                                                                                                                       Six months ended
(unaudited)                                                                                                                                                                                                   September 30                                                                                                                           September 30
                                                                                                                     2017               2016                 2017               2016    
                                                                                                         -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- --------------------
Net income                                                                                                                            37,127                                                   20,018                                                                        25,038                                                    5,982
Add (deduct) the impact of:
Bain Capital management fees (a)                                                                                              --                                                       63                                                                --                                                      212
Transaction costs (b)                                                                                                                    218                                                    1,910                                                                         1,546                                                    2,734
Unrealized gain on derivatives (c)                                                                                            --                                           --                                                                --                                                    4,422
Unrealized foreign exchange gain on Term Loan Facility (d)                                                                            (5,814 )                                         --                                                                        (9,580 )                                         --
International restructuring costs (e)                                                                                         --                                                       80                                                                --                                                      175
Share-based compensation (f)                                                                                                             310                                                    1,374                                                                           390                                                    1,499
Agent terminations and other (g)                                                                                              --                                           --                                                                --                                                     (116 )
Non-cash rent expense (h)                                                                                                                504                                                      658                                                                           991                                                      658
Amortization on intangible assets acquired by Bain Capital (i)                                                        544                544                1,088              1,088    
                                                                                                         -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- --------------------
Total adjustments                                                                                                                     (4,238 )                                                  4,629                                                                        (5,565 )                                                 10,672
Tax effect of adjustments                                                                                             (12 )                                (907 )                                   174             (2,406 )                     
                                                                                                         -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- --------------------
Adjusted net income                                                                                                32,877             23,740               19,647             14,248    
                                                                                                         ==================== ============== ==================== ==================== ============== ==================== ==================== ==================== ============== ==================== ==================== ============== ==================== ====================
     
(a)                      In connection with Bain’s purchase of a 70% equity interest in our
                         business on December 9, 2013 (the "Acquisition"), we entered into a
                         management agreement with certain affiliates of Bain Capital for a
                         term of five years ("Management Agreement"). This amount represents
                         payments made pursuant to the Management Agreement for ongoing
                         consulting and other services. In connection with the IPO on March
                         21, 2017, the Management Agreement was terminated in consideration
                         for a termination fee of $9.6 million and Bain Capital no longer
                         receives management fees from the Company.
(b)                      In connection with the IPO in March 2017 and Secondary Offering in
                         June 2017, we incurred expenses related to professional fees,
                         consulting, legal, and accounting that would otherwise not have been
                         incurred. These fees are reflected in the first quarter of fiscal
                         2017 and fiscal 2018, respectively, and are not indicative of our
                         ongoing costs.
(c)                      Represents non-cash unrealized gains on foreign exchange forward
                         contracts recorded in fiscal 2016 that relate to fiscal 2017. We
                         manage our exposure to foreign currency risk by entering into
                         foreign exchange forward contracts. Management forecasts its net
                         cash flows in foreign currency using expected revenue from orders it
                         receives for future periods. The unrealized gains and losses on
                         these contracts are recognized in net income from the date of
                         inception of the contract, while the cash flows to which the
                         derivatives related are not realized until the contract settles.
                         Management believes that reflecting these adjustments in the period
                         in which the net cash flows occur is more appropriate.
(d)                      Represents non-cash unrealized gains on the translation of the Term
                         Loan Facility from USD to CAD.
(e)                      Represents expenses incurred to establish our international
                         headquarters in Zug, Switzerland, including closing several smaller
                         offices across Europe, relocating personnel, and incurring temporary
                         office costs.
(f)                      Represents non-cash share-based compensation expense on stock
                         options issued prior to the IPO. Adjustments reflect management’s
                         estimate that certain tranches of outstanding option awards will
                         vest.
(g)                      Represents accrued expenses related to termination payments to be
                         made to our third-party sales agents. As part of a strategy to
                         transition certain sales functions in-house, we terminated the
                         majority of our third party sales agents and certain distributors,
                         primarily during fiscal 2015 and 2016, which resulted in indemnities
                         and other termination payments. As sales agents have now largely
                         been eliminated from the sales structure, management does not expect
                         these charges to recur in future fiscal periods.
(h)                      Represents non-cash lease amortization charges during pre-opening
                         periods for new store leases.
(i)                      As a result of the Acquisition we recognized an intangible asset for
                         customer lists in the amount of $8.7 million, which has a useful
                         life of four years, and will expire in the third quarter of fiscal
                         2018.
                                                                                           
                                                                                                                                                                                            
Pro forma income per share and adjusted net income per share
(unaudited)
CAD $000s                                                                                                                           Three months                                                      Six months
(except per share data)                                                                                                                    ended                                                           ended
                                                                                                                                    September 30                                                    September 30
                                                                                                                                            2016                                                            2016
Pro forma income per share
Net income                                                                                                                              $ 20,018                                                    $      5,982
                                                                                                                                                                                            
Weighted average number of common shares                                                                                             100,000,000                                                     100,000,000
Pro forma for IPO as at April 1, 2016                                                                                                  6,308,154                                                       6,308,154
                                                                                                                                   --------------                                          ----------------------
Pro forma weighted average number of common shares outstanding over                                                                  106,308,154                                                     106,308,154
the year
                                                                                                                                                                                            
Pro forma income per share                                                                                                              $   0.19                                                    $       0.06
                                                                                                                                                                                            
                                                                                                                                                                                            
Pro forma adjusted net income per share
Adjusted net income                                                                                                                     $ 23,740                                                    $     14,248
                                                                                                                                                                                            
Pro forma weighted average number of shares                                                                                          106,308,154                                                     106,308,154
                                                                                                                                                                                            
Pro forma adjusted net income per share                                                                                                 $   0.22                                                    $       0.13

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20171109005406r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20171109005406/en/

SOURCE: Canada Goose Holdings Inc.

ICR, Inc. 
Investors: 
Allison Malkin/Caitlin Morahan 
203-682-8200 
Allison.Malkin@ICRinc.com / Caitlin.Morahan@ICRinc.com 
or 
Media: 
Julia Young 
646-277-1280 
Julia.Young@ICRinc.com


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