Canada Goose Reports First Quarter Fiscal 2026 Results

Executive Summary

• Canada Goose Holdings Inc. reported first-quarter fiscal 2026 financial results ending June 29, 2025, showing a 22.4% year-over-year increase in total revenue to CAD $107.8 million.
• The company reported a net loss attributable to shareholders of CAD $125.2 million (CAD $1.29 per share), a significant deterioration from the prior year's net loss of CAD $77.4 million, primarily driven by a one-time arbitration award.
• Despite the net loss, the company reduced its net debt position by CAD $224.2 million year-over-year to CAD $541.7 million, supported by higher cash balances and lower borrowings.

Key Details

• Revenue Performance:
  • Total revenue increased 22.4% to CAD $107.8 million (up 21.5% on a constant currency basis).
  • Direct-to-Consumer (DTC) revenue rose 23.8% to CAD $78.1 million, driven by 14.8% DTC comparable sales growth.
  • Wholesale revenue increased 11.9% to CAD $17.9 million.
  • Other revenue increased 31.1% to CAD $11.8 million.
• Profitability Metrics:
  • Gross profit increased 25.9% to CAD $66.2 million, with a gross margin of 61.4% (vs. 59.7% in Q1 FY2025).
  • Operating loss widened to CAD $158.7 million (vs. CAD $96.9 million in prior year).
  • Net loss attributable to shareholders was CAD $125.2 million (CAD $1.29 per basic and diluted share), compared to a net loss of CAD $77.4 million (CAD $0.80 per share) in the prior year.
  • Adjusted EBIT was a loss of CAD $106.4 million (vs. loss of CAD $96.0 million in prior year).
  • Adjusted net loss attributable to shareholders was CAD $88.2 million (CAD $0.91 per share).
• Key Drivers of Loss:
  • SG&A expenses surged to CAD $224.9 million from CAD $149.5 million in the prior year.
  • The increase was primarily driven by a one-time financial award of CAD $43.8 million (USD $32.0 million) resulting from the resolution of an arbitration with a former supplier.
  • Additional costs included retail network expansion, increased marketing spend for Spring-Summer 2025 and Snow Goose campaigns, and product design investments.
• Balance Sheet & Cash Flow:
  • Inventory stood at CAD $439.5 million, a 9% decrease year-over-year.
  • Net debt decreased to CAD $541.7 million from CAD $765.9 million at the end of Q1 FY2025.
  • Cash balance at quarter-end was CAD $180.5 million.
• Operational Highlights:
  • Launched Spring-Summer 2025 collection and second Snow Goose capsule campaign.
  • Permanent store count reached 76, including two temporary store conversions.
  • Achieved a 9% reduction in Scope 1 emissions and a 25% reduction in Scope 3 emissions year-over-year.
  • Invested in 10 renewable energy projects to match Scope 2 emissions for fiscal 2025.
• Geographic Performance:
  • North America revenue grew 27.0% to CAD $51.3 million.
  • Greater China revenue grew 18.7% to CAD $26.0 million.
  • Asia Pacific (excluding Greater China) revenue grew 46.1% to CAD $13.0 million.
  • EMEA revenue grew 3.6% to CAD $17.5 million.

Notable Quotes

• “We’re off to a strong start, brand heat is rising, and our DTC performance is delivering,” said Dani Reiss, Chairman & CEO of Canada Goose. “We’re executing with precision, from bold storytelling to smarter retail moves, and it’s showing up in results. I’m optimistic about the momentum we continue to see as we deliver more relevant product and run a tighter, more focused business.”