Canada Goose Reports Second Quarter Fiscal 2026 Results

Executive Summary

• Canada Goose reported Q2 FY2026 revenue of C$272.6 M (up 1.8% YoY) but posted an operating loss of C$17.6 M and a net loss of C$15.2 M, or $0.16 per share.
• DTC revenue surged 21.8% to C$126.6 M, driven by 10.2% comparable‑sales growth; wholesale revenue slipped 1.0% YoY.
• Net debt fell to C$707.1 M from C$826.4 M after refinancing a USD 300 M term loan (SOFR + 3.50%, maturity Aug 23 2032).

Key Details

• Revenue & Segment Performance
• Total revenue: C$272.6 M (+1.8% YoY, –0.8% constant‑currency).
• DTC revenue: C$126.6 M (+21.8% YoY, +20.5% cc), comparable‑sales growth 10.2%.
• Wholesale revenue: C$135.9 M (–1.0% YoY, –4.8% cc).

• Other revenue: C$10.1 M (–62.0% YoY, –63.2% cc).

• Profitability

• Gross profit: C$170.1 M (+3.7% YoY); gross margin 62.4% vs 61.3% prior year.
• SG&A expenses: C$187.7 M (up from C$162.5 M) – higher store execution, labor, marketing, and expansion costs.
• Operating loss: C$17.6 M (vs operating income of C$1.6 M prior year).

• Net loss attributable to shareholders: C$15.2 M, or $0.16 per share (vs net income of C$5.4 M, $0.06 per share last year).

• Adjusted Measures

• Adjusted EBIT: –C$14.2 M (vs +C$2.5 M prior year).

• Adjusted net loss attributable to shareholders: –C$13.3 M (vs +C$5.2 M prior year).

• Balance Sheet Highlights

• Inventory: C$460.7 M (down 3% YoY).
• Net debt: C$707.1 M, down from C$826.4 M, reflecting cash generation and lower borrowings.

• Cash at period end: C$94.2 M (down from C$68.8 M prior year).

• Financing Activity

• Amended term loan facility: USD 300 M principal outstanding, interest rate SOFR + 3.50%, maturity Aug 23 2032.

• Net cash provided by financing activities: C$38.2 M (vs C$58.7 M prior year).

• Operational Updates

• Launched Fall/Winter 2025 collection; new Paris flagship store on Champs‑Élysées; total permanent stores now 77.

• Partnerships: NBA MVP Shai Gilgeous‑Alexander and actor Hsu Kuang‑Han as global brand ambassadors, expanding Asian‑Pacific engagement.

• Governance Changes

• Director Stephen Gunn retired/resigned (effective Oct 1 2025); Belinda Wong appointed to Audit Committee as audit‑committee financial expert.

• Shareholder Actions

• Early renewal of Normal Course Issuer Bid (NCIB) commencing Nov 10 2025, targeting up to ~4.58 M subordinate voting shares (~10% of public float).

• Re‑entered Automatic Share Purchase Plan (ASPP) to facilitate NCIB purchases during blackout periods.

• Conference Call

• Scheduled for Nov 6 2025 at 8:30 a.m. EDT; webcast link provided.

Notable Quotes

“Our second quarter results reflect strong DTC performance and positive comparable sales growth – clear proof our strategy is working,” — Dani Reiss, Chairman & CEO.