For the quarter, GOOS reported a loss per share of CAD ($0.15), beating the Capital IQ Consensus by CAD $0.04, with revenue increasing 22% year/year to CAD $51.1 million. The growth in revenue was entirely driven by its direct-to-consumer channel (e-commerce & retail stores), which jumped by 174% year/year to CAD $36.5 million. This more than offset a 49% decline in its wholesale channel. As GOOS continues to focus on expanding into new geographies -- both in e-commerce and brick-and-mortar shops -- its wholesale segment will become a smaller portion of total revenue.
A standout metric for GOOS was gross margin which surged to 54.4% from 44.9% in the year ago period. This is also ahead of the 52.3% it had achieved over the first nine months of this fiscal year. This, again, was driven by the surge in revenue in its higher-margin DTC channel. The continue rise in margin is also an indication that GOOS is enjoying significant pricing power, thanks to the growing popularity of its brand.
Another key metric for GOOS is Adjusted EBITDA, which came in at ($11.4) million. Q4 is typically GOOS' second weakest quarter (Q1 the weakest), so, a loss is neither a concern nor was it unexpected. In fact, analysts were projecting negative Adjusted EBITDA more in the range of CAD ($30.0) million. On a year/year basis, the Adjusted EBITDA loss did widen from CAD ($7.6) million. This is mainly attributable to a 100% spike in SG&A costs, some of which was due to non-recurring expenses related to its IPO.
GOOS also provided some general growth benchmarks for revenue, Adjusted EBITDA, and Adjusted net income growth for FY18 and for the next three fiscal years. The main takeaway is that GOOS is expecting healthy growth for the foreseeable future. For instance, for both FY18 and for the next three years, GOOS is expecting revenue growth in the mid-to-high teens. There aren't many apparel retailers issuing guidance like that. Furthermore, it is expecting Adjusted net income per share to grow by about 25% on average over the next three years with Adjusted EBITDA margin expanding by an average of 75 basis points per year.
So, to wrap up, GOOS' Q4 report clearly illustrates a company with significant momentum behind it, with a number of top and bottom line drivers in the years to come.