Canada Goose’s fiscal Q1 2026 revenue performance was exceptionally strong, with total revenue increasing 22.4% to $107.8 million CAD. On a constant currency basis, revenue grew 21.5%, indicating solid underlying business momentum. This growth was broad-based across all revenue channels and geographic regions, demonstrating the strength of the Canada Goose brand and successful execution of strategic initiatives.

Gross profit increased 25.9% to $66.2 million, with gross margin expanding 170 basis points to 61.4%. This margin improvement was primarily driven by higher margin contribution from the company’s European knitwear facility. Notably, pricing, product mix, and channel mix did not have significant impacts on a year-over-year basis, indicating that the margin expansion was primarily driven by operational efficiencies.

However, profitability metrics were severely impacted by a one-time arbitration award of $43.8 million CAD ($32.0 million USD) resulting from the resolution of a dispute with a former supplier. This charge was recorded in SG&A expenses and significantly affected operating and net loss metrics. Excluding this one-time charge, the underlying operational performance would have been substantially better.

SG&A expenses increased to $224.9 million from $149.5 million in the prior year period. Beyond the arbitration award, the increase reflected investments in expanding the global retail network, increased marketing spend for Spring-Summer 2025 and Snow Goose campaigns, and investments in product design and merchandising capabilities.

Net loss attributable to shareholders was $(125.2) million, or $(1.29) per share, compared to $(77.4) million, or $(0.80) per share in the prior year. On an adjusted basis, excluding the one-time charges, the adjusted net loss was $(88.2) million, or $(0.91) per share, demonstrating the significant impact of the arbitration settlement on reported results.

Direct-to-Consumer (DTC) remained the dominant revenue channel, generating $78.1 million, up 23.8% year-over-year (22.8% on constant currency basis). This strong performance was driven by DTC comparable sales growth of 14.8% and revenue contribution from non-comparable stores. The DTC channel accounted for approximately 72% of total revenue, highlighting the company’s successful strategy of building direct relationships with customers.

The robust DTC performance reflects the success of Canada Goose’s retail expansion strategy and the appeal of their Spring-Summer 2025 collection. The company continued to strengthen its presence in key markets with two temporary store conversions, bringing the total permanent store count to 76. The new store design concept showcased in the renovated Amsterdam store features elevated finishes, statement ceiling artwork, and a dedicated VIP space for a more luxurious experience.

Wholesale revenue increased 11.9% to $17.9 million (11.3% on constant currency basis), primarily due to timing of shipments and increased demand from wholesale partners. This growth demonstrates the continued strength of Canada Goose’s brand equity in the wholesale channel and the company’s ability to maintain selective distribution while supporting retail partners.

Other revenue showed exceptional growth of 31.1% to $11.8 million (30.0% on constant currency basis), driven by a higher number of Friends & Family events. This category includes revenue from special events, collaborations, and other brand experiences that enhance customer engagement and brand loyalty.

The strong performance across all revenue channels demonstrates Canada Goose’s ability to execute a multi-channel strategy effectively. The company’s focus on premium positioning, brand storytelling, and customer experience continues to drive growth in both DTC and wholesale channels while expanding into new revenue opportunities.

North America delivered strong performance with revenue increasing 27.0% to $51.3 million (26.5% constant currency). The United States was particularly impressive with 45.4% growth, while Canada showed solid 11.4% growth. This performance reflects the success of Canada Goose’s brand building efforts in its home market and the growing appeal of the brand’s seasonal collections beyond traditional winter wear.

Asia Pacific continued to be a key growth driver, with revenue increasing 26.6% to $39.0 million (26.9% constant currency). Greater China showed robust 18.7% growth (20.1% constant currency), demonstrating the brand’s continued resonance with Chinese consumers. Asia Pacific excluding China delivered exceptional 46.1% growth (43.8% constant currency), highlighting successful market expansion efforts across the region.

EMEA (Europe, Middle East, Africa, and Latin America) showed modest growth of 3.6% to $17.5 million, though this represented a slight decline of 0.6% on constant currency basis due to foreign exchange headwinds. Despite currency challenges, the region maintained relative stability, and the recent Amsterdam store renovation demonstrates continued investment in key European markets.

The geographic performance highlights Canada Goose’s successful international expansion strategy. The particularly strong results in the United States and Asia Pacific markets demonstrate the global appeal of the brand and the effectiveness of localized marketing campaigns such as the Snow Goose capsule desert campaign featuring celebrity guests and influencers.

The company’s ability to drive growth across diverse geographic markets, even while facing varying economic conditions and currency headwinds, underscores the strength of the Canada Goose brand and the effectiveness of its 360-degree marketing approach in building brand momentum globally.

Canada Goose continued to execute on its strategic vision of building a globally relevant luxury lifestyle brand through innovative product launches, compelling storytelling, and retail expansion:

Product Innovation and Seasonal Collections

• Spring-Summer 2025 Collection: Launched through a highly stylized campaign featuring styles that embody a fresh aesthetic while staying true to Canada Goose heritage. Apparel was the fastest growing category within this collection, demonstrating successful diversification beyond traditional outerwear
• Snow Goose Capsule: Launched the second Snow Goose capsule with a striking summer campaign set in the deserts of Utah, featuring celebrity guests and influencer partnerships including star campaigner Lara Stone
• Year-Round Relevance: The success of seasonal collections demonstrates Canada Goose’s ability to maintain brand relevance and drive sales beyond traditional winter seasons

Retail Experience and Store Development

• Store Portfolio Expansion: Strengthened presence in key markets with two temporary store conversions, bringing total permanent store count to 76
• Store Design Innovation: Showcased new store design concept in renovated Amsterdam store with elevated finishes, statement ceiling artwork, and dedicated VIP space for more luxurious customer experience
• Retail Excellence: Continued focus on creating immersive brand experiences that reinforce Canada Goose’s premium positioning and heritage storytelling

Marketing and Brand Building

• 360-Degree Marketing Approach: Comprehensive marketing strategy that continues to resonate strongly with consumers and build brand momentum globally
• Celebrity and Influencer Partnerships: Strategic collaborations with high-profile personalities to enhance brand visibility and appeal to target demographics
• Digital Engagement: Continued investment in digital marketing and social media presence to reach younger consumers and international markets

Sustainability Leadership

• Impact Report Publication: Released fiscal year 2025 Impact Report providing updates on sustainable impact strategy progress
• Emissions Reduction: Achieved 9% reduction in Scope 1 emissions and 25% reduction in Scope 3 emissions year-over-year
• Renewable Energy Investment: Invested in 10 renewable energy projects to fully match Scope 2 emissions in fiscal 2025
• ESG Commitment: Demonstrating leadership in environmental responsibility while maintaining premium brand positioning

These strategic initiatives position Canada Goose for continued growth by expanding brand relevance across seasons, enhancing customer experience, and building sustainable business practices that align with evolving consumer expectations.

Canada Goose demonstrated improved financial positioning and operational efficiency in the first quarter:

Inventory Optimization

• Inventory Reduction: Inventory decreased 9% year-over-year to $439.5 million, reflecting higher demand and continued proactive inventory management approach
• Working Capital Management: Disciplined approach to inventory management contributed to improved cash flow generation and reduced carrying costs
• Demand Alignment: Inventory levels better aligned with demand patterns, reducing excess stock and improving inventory turnover

Debt and Liquidity Position

• Net Debt Improvement: Net debt decreased to $541.7 million from $765.9 million in the prior year period, a reduction of $224.2 million
• Cash Position: Cash balance of $180.5 million at quarter end, though down from $334.4 million at fiscal year end due to seasonal working capital needs
• Credit Facilities: Maintained access to various credit facilities including Japan Facility borrowings of $8.5 million and Term Loan balance of $393.0 million

Operating Cash Flow

• Cash Flow from Operations: Net cash used in operating activities was $(142.8) million, consistent with $(142.9) million in the prior year period
• Seasonal Patterns: Q1 typically represents a seasonal cash usage period as the company builds inventory for peak selling seasons
• Working Capital Changes: Changes in non-cash operating items of $(29.2) million reflected typical seasonal working capital requirements

Financial Flexibility

• Balance Sheet Strength: Total assets of $1.53 billion provide solid foundation for continued growth investments
• Equity Position: Equity attributable to shareholders of $431.7 million, though reduced from prior year due to accumulated losses
• Investment Capacity: Improved debt position and disciplined working capital management provide flexibility for strategic investments and growth initiatives

The improved balance sheet metrics, particularly the significant reduction in net debt and optimized inventory levels, demonstrate Canada Goose’s enhanced operational efficiency and financial discipline. This strengthened financial position provides a solid foundation for continued investment in growth initiatives and brand building activities.