CANADA GOOSE HOLDINGS INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS For the first quarter ended July 3, 2022 The following Management's Discussion and Analysis ("MD&A") for Canada Goose Holdings Inc. ("us," "we," "our," "Canada Goose" or the "Company") is dated August 10, 2022 and provides information concerning our results of operations and financial condition for the first quarter ended July 3, 2022. All figures are presented in Canadian ("CAD") dollars, unless ...

Financial Data and Key Metrics Changes - Canada Goose achieved record sales, surpassing $1 billion for the first time in fiscal 2022 [7] - The company expects fiscal 2023 revenue between $1.3 billion and $1.4 billion, with EBIT margins projected between 19% and 21% [9][30] - Adjusted EBIT margin for fiscal 2022 was 15.9%, with adjusted EPS at $1.09 [29] Business Line Data and Key Metrics Changes - Direct-to-Consumer (DTC) revenue represented over two-thirds of total business at $740 million, with DTC gross margins at 76% [16][28] - Non-parka revenue grew by over 70% in fiscal 2022, indicating strong demand for year-round offerings [19][34] - Wholesale revenue is expected to increase by approximately 6% in fiscal 2023 [32] Market Data and Key Metrics Changes - North America was the biggest driver of growth, with consumer confidence returning to pre-pandemic levels [10] - The APAC region saw a decline due to COVID restrictions, particularly in Mainland China [10] - The joint venture in Japan is expected to contribute $60 million to $65 million in revenue for fiscal 2023 [32] Company Strategy and Development Direction - The company aims to increase its DTC mix and expand its retail network by adding up to 13 stores globally [17][81] - Canada Goose is focusing on sustainability, with a commitment to using more recycled and responsibly sourced materials [21][22] - The company is pursuing category expansion, particularly in non-parka offerings and footwear [19][91] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand and business despite challenges, citing a unique supply chain advantage [11][26] - The outlook for fiscal 2023 is optimistic, with expectations of strong consumer demand and improved retail productivity [46] - Management does not expect a full recovery of international tourism to impact their guidance significantly [94] Other Important Information - The company has appointed new leadership roles to strengthen its commercial operations and board [12][13] - Canada Goose has committed to net zero carbon emissions by 2025 and has signed onto the United Nations Global Compact [22][23] Q&A Session Summary Question: What are Carrie Baker's priorities in her new role? - Carrie Baker emphasized executing with excellence and creating impact from both consumer and financial perspectives [50] Question: Can you elaborate on the outlook for Mainland China? - Jonathan Sinclair noted that Q1 is expected to be heavily impaired, with a gradual improvement anticipated in Q2 and normal business levels expected in Q3 [51] Question: How is the wholesale channel performing? - Dani Reiss stated that the wholesale channel is progressing well, with strong sell-throughs and increased order books [54] Question: What is the rationale behind the revenue growth guidance? - Jonathan Sinclair explained that the guidance is based on healthy comparable growth and pricing power, with expectations for continued unit growth [58] Question: What are the capital allocation priorities for fiscal '23? - Jonathan Sinclair indicated that the best use of cash is to invest in the business, with ongoing investments in store estate and manufacturing facilities [68] Question: What assumptions underpin the confidence in achieving DTC growth? - Jonathan Sinclair mentioned expectations of pricing impacts, product development, and a gradual resumption of traffic as key factors [72]

Financial Performance - Total revenue for Q4 Fiscal 2022 was $223.1 million, an increase of 6.8% from $208.8 million in Q4 Fiscal 2021[6] - Direct-to-Consumer (DTC) revenue rose by 8.0% to $185.4 million, while e-Commerce revenue decreased by 12.3%[6] - Non-IFRS adjusted EBIT for Q4 was $12.5 million, representing a margin of 5.6%, compared to $4.8 million and 2.3% in the prior year[6] - The company reported a net loss of $9.1 million, or $(0.09) per diluted share, compared to a net income of $2.5 million, or $0.02 per diluted share in the previous year[6] - For Fiscal 2023, total revenue is expected to be between $1.300 billion and $1.400 billion, with non-IFRS adjusted EBIT projected at $250 million to $290 million[7] - Adjusted net income for the year ended April 3, 2022, was CAD $119.4 million, up from CAD $86.2 million in 2021, reflecting a growth of 38.5%[17] - Adjusted EBIT margin for the fourth quarter was 5.6%, an increase from 2.3% in the same quarter of the previous year[16] - Total adjustments for the fourth quarter amounted to CAD $16.1 million, compared to a negative adjustment of CAD $2.0 million in the same quarter of 2021[17] Cash and Inventory Management - Cash at the end of Q4 was $287.7 million, down from $477.9 million, with inventory increasing to $393.3 million from $342.3 million[6][13] Shareholder Actions - The company repurchased 5,636,763 subordinate voting shares for a total cash consideration of $253.2 million during Fiscal 2022[7] Market Strategy and Growth - The company anticipates DTC to account for 70% to 73% of total revenue, driven by comparable sales growth in the low to high teens[7] - The company is focusing on expanding into new markets and enhancing customer experience while leveraging its successful product strategy[3] - The company plans to enhance its global distribution structure through the transition of logistics agencies[19] Challenges and Risks - The company anticipates continued challenges due to the COVID-19 pandemic and evolving global economic conditions, impacting future performance[19] Accounting and Policy Changes - The company has adopted a change in accounting policy regarding the treatment of implementation costs related to Software as a Service (SaaS) arrangements[18] Taxation - The effective tax rate for Fiscal 2023 is expected to be in the low 20s as a percentage of income before taxes[11] Impairment and Losses - The company incurred impairment losses of CAD $7.7 million for the year ended April 3, 2022, with no impairment losses recorded in the previous year[17] - The company reported net excess overhead costs from temporary closure of manufacturing facilities of CAD $4.3 million for the year ended April 3, 2022[17] - Unrealized foreign exchange gain on the Term Loan Facility was CAD $1.1 million for the fourth quarter, compared to a loss of CAD $3.1 million in the same quarter of 2021[17]

Business Environment - The company operates in a seasonal business environment, which impacts its financial performance[166] - The fiscal year 2022 is a 53-week period ending on April 3, 2022, with the additional week added to the third quarter[15] Properties and Operations - As of April 3, 2022, the company leases 61 properties globally, including 41 permanent retail stores and eight manufacturing facilities[171] - The company has a diverse organizational structure, which supports its global operations[169] Compliance and Regulations - The company believes it is in material compliance with applicable laws and regulations across its operating jurisdictions[167] - The company monitors changes in laws and regulations that may impact its business operations and compliance[167] - The company’s financial statements are prepared in accordance with International Financial Reporting Standards (IFRS)[14] Risk Management - The company faces risks related to the ongoing COVID-19 pandemic and geopolitical events, which may affect its operations and financial condition[23] - The company is focused on managing its exposure to data security and cyber security events as part of its risk management strategy[25] Customer and Supplier Relationships - The company emphasizes the importance of maintaining strong relationships with customers, suppliers, and distributors for its growth strategies[23]

Financial Data and Key Metrics Changes - Total revenue increased by 26.5% to $586 million, excluding temporary PPE sales from last year [21][30] - Adjusted EBIT margin expanded by 200 basis points to 35.3% and adjusted EPS increased by 42% to $1.42 per share [9][30] - Total SG&A was $184 million, up 27% from last year [30] Business Line Data and Key Metrics Changes - Direct-to-Consumer (DTC) revenue increased by 49% to $445 million, driven by higher revenue from existing stores, eCommerce growth, and retail expansion [22] - Wholesale revenue decreased by 15% to $137 million, attributed to a normalization of timing with shipments [23] - Non-parka revenue grew by 75%, with strong performance in vests, lightweight jackets, and footwear [24] Market Data and Key Metrics Changes - DTC revenue in Mainland China increased by 35%, although store traffic slowed in December due to COVID restrictions [25] - Revenue in EMEA increased by 16%, impacted by the absence of international traffic [26] - North America saw revenue growth of 32% in Canada and 26% in the United States, with established retail stores performing near pre-pandemic levels [27][28] Company Strategy and Development Direction - The company aims to build an enduring global lifestyle brand and expand year-round roles, with a focus on innovative collaborations and product offerings [13][15] - The launch of the HUMANATURE collection emphasizes the company's commitment to sustainability and environmentally responsible materials [16] - The company is confident in its inventory position and ability to navigate inflationary pressures going into fiscal 2023 [11] Management's Comments on Operating Environment and Future Outlook - Management views recent disruptions as temporary and remains optimistic about long-term growth potential [9][34] - The company expects to achieve strong growth and margin expansion even without a full retail recovery globally [34][55] - Management is confident in the brand's momentum and lifestyle relevance, supported by a unique supply chain [10][34] Other Important Information - The company has launched its first-ever footwear collection, which has generated strong consumer interest [14] - The company is expanding its eCommerce capabilities globally, with a successful launch in North America [12] Q&A Session Summary Question: Thoughts on store traffic regionally and marketing spend - Management noted that store traffic in North America remains strong, while Asia and EMEA are experiencing lower traffic due to COVID [38] - Marketing spend is maintained at a constant percentage of revenue, with no expected changes [38] Question: Clarification on margin outlook - The decrease in margin outlook is primarily due to sales deleverage from lower traffic, with expectations for recovery as traffic normalizes [43][45] Question: Details on Asia and China performance - Management confirmed that the primary issue in China is COVID-related restrictions, but online sales have shown strong growth [60][61] Question: Brand equity and competitive positioning - The company sees strong brand equity across all markets, particularly among younger consumers, driven by collaborations [71] Question: Store sales productivity and growth expectations - New store cohorts are performing well, and the company expects to continue opening stores at a rate of around 10% annually [75] Question: Thoughts on share price volatility and buyback strategy - Management emphasized a long-term focus on building a strong business, with share buybacks considered when share prices are attractive [82][83]

Financial Data and Key Metrics Changes - Total revenue increased by 40% to $233 million, excluding temporary PPE sales from the previous year [30][41] - DTC revenue grew by 80% to $83 million, driven by strong retail recovery and a 34% increase in e-commerce [32][41] - Adjusted EBIT margin was just under last year at 6.9%, and adjusted EPS grew 20% to $0.12 per share [37][41] Business Line Data and Key Metrics Changes - Wholesale revenue increased by 25% to $148 million, reflecting a reversal of late order shipments from the previous year [31] - DTC gross margin was 73.7%, while Wholesale gross margin was 49.4% [34] - All geographic regions delivered total revenue growth greater than 30%, with Mainland China DTC revenue growing by 86% [33] Market Data and Key Metrics Changes - Mainland China was a standout performer, contributing significantly to DTC growth [33] - Retail traffic and store productivity showed strong recovery compared to last year, indicating positive market trends [24][25] Company Strategy and Development Direction - The company is focusing on expanding its DTC business, which is projected to account for nearly 70% of total revenue this year [24] - The launch of a new footwear collection is seen as a significant milestone, aiming to balance performance and luxury [14][20] - The company is committed to sustainability and has achieved certification under the Responsible Down Standard [123] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering the peak season, raising the financial outlook for the remainder of the year [13][41] - The company does not expect material revenue headwinds related to supply or shipping constraints [22] - There is confidence in the recovery of international retail traffic, which represents additional upside potential [44] Other Important Information - The company opened its first retail store in California, which features a unique snow room to enhance customer experience [23] - The footwear launch is expected to be a long-term revenue contributor, although it may not significantly impact this year's financials [68] Q&A Session Summary Question: Insights on the 1H-2H dynamic and confidence in revenue acceleration - Management noted a strategic shift towards DTC and resizing of the Wholesale business, leading to confidence in revenue growth for the second half [53][54] Question: Guidance on DTC and Wholesale performance - DTC performance is driving the upside in guidance, with recovery in store productivity and continued e-commerce growth [58][59] Question: Transition to fur-free products - The transition is on track, with non-fur parka styles performing well and contributing to increased outlook [65] Question: Footwear launch plans and financial expectations - The footwear category is expected to ramp up over time, with initial lower gross margins but potential for improvement as the category scales [70][86] Question: Impact of tourism on sales - International tourism is currently down, but management views its eventual recovery as a significant upside for the business [73] Question: Performance in China and e-commerce journey - China is a key market with strong growth, and the company is expanding its online presence through platforms like Tmall and JD [78] Question: Direct-to-Consumer growth drivers - DTC growth is attributed to strong performance in existing stores and e-commerce, with ongoing recovery compared to pre-pandemic levels [82][105] Question: Product mix and non-parka sales - The company continues to sell a diverse product mix year-round, with expectations for non-parka products to grow in the Wholesale channel [119][120]

Canada Goose Holdings Inc. (NYSE:GOOS) Q1 2022 Earnings Conference Call August 11, 2021 9:00 AM ET Company Participants Dani Reiss - President, Chief Executive Officer Jonathan Sinclair - Executive Vice President, Chief Financial Officer Patrick Bourke - Senior Director, Investor Relations Conference Call Participants Oliver Chen - Cowen Jonathan Komp - Baird Omar Saad - Evercore ISI Michael Binetti - Credit Suisse Ike Boruchow - Wells Fargo Megan Annette - TD Securities Sam Poser - Williams Trading Jay Sol ...

Canada Goose Holdings Inc. (NYSE:GOOS) Q4 2021 Earnings Conference Call May 13, 2021 9:00 AM ET Company Participants Patrick Bourke - VP, IR Dani Reiss - President and CEO Jonathan Sinclair - EVP and CFO Conference Call Participants Ike Boruchow - Wells Fargo Jonathan Komp - Baird Michael Binetti - Credit Suisse Oliver Chen - Cowen Megan Annette - TD Securities Omar Saad - Evercore Sam Poser - Williams Trading Camilo Lyon - BTIG Jay Sole - UBS Robby Ohmes - Bank of America Adrienne Yih - Barclays Mark Petri ...

PART I [Key Information](index=9&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section details significant business and share-related risks, including COVID-19 impacts, DTC channel expansion challenges, and concentrated voting power [Risk Factors](index=10&type=section&id=D.%20Risk%20Factors) The company faces various business and share-related risks, including pandemic impacts, DTC expansion challenges, and concentrated voting power - The COVID-19 pandemic has materially impacted business operations, including shutdowns and decreased consumer spending, with future impacts remaining highly uncertain[31](index=31&type=chunk)[32](index=32&type=chunk) - Growth strategy relies heavily on **DTC channel expansion**, requiring significant investment and presenting challenges in e-commerce scalability and regulatory compliance[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - Business concentration in performance luxury outerwear makes it vulnerable to shifts in consumer preferences and economic downturns[44](index=44&type=chunk)[46](index=46&type=chunk) - Total indebtedness of **$377.3 million** as of March 28, 2021, could limit financial flexibility and expose the company to interest rate risks[48](index=48&type=chunk) - The dual-class share structure concentrates approximately **89.6% of voting power** with Bain Capital and the CEO, limiting subordinate shareholder influence[127](index=127&type=chunk)[128](index=128&type=chunk) - As a 'controlled company' and 'foreign private issuer', Canada Goose is exempt from certain NYSE and SEC requirements, potentially offering fewer shareholder protections[133](index=133&type=chunk)[135](index=135&type=chunk) [Information on the Company](index=32&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) Founded in 1957, Canada Goose is a performance luxury apparel brand focused on DTC growth, global expansion, and product diversification [History and Overview](index=32&type=section&id=A.%20History%20and%20Overview) Canada Goose, founded in 1957, is a leading performance luxury apparel brand with a 'Made in Canada' commitment - Canada Goose, founded in **1957**, is a leading performance luxury apparel manufacturer known for its 'Made in Canada' commitment[146](index=146&type=chunk) - Bain Capital acquired a **70% equity interest** in December 2013, followed by the company's IPO in March 2017[147](index=147&type=chunk)[148](index=148&type=chunk) - The company acquired Baffin Inc., a Canadian footwear designer and manufacturer, in November 2018[149](index=149&type=chunk) [Growth Strategies](index=33&type=section&id=B.%20Growth%20Strategies) The company's growth strategy focuses on DTC expansion, global penetration, product diversification, and margin improvement - The company's long-term growth strategy is based on four key pillars: **driving DTC mix higher** (DTC revenue reached **$528.2 million** in fiscal 2021, representing **58.4% of total revenue**), **increasing global penetration**, **enhancing product offerings** beyond outerwear, and **expanding margins** through brand strength and efficiencies[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - The company is committed to sustainability, aiming for **100% Responsible Down Standard (RDS) certification in 2021** and planning to end new fur purchasing by 2022[157](index=157&type=chunk)[158](index=158&type=chunk) [Operating and Financial Review and Prospects](index=35&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section analyzes fiscal 2021 financial performance, highlighting revenue decline due to COVID-19, DTC growth, and liquidity Fiscal Year Financial Performance Overview | Metric | Fiscal 2021 (in millions USD) | Fiscal 2020 (in millions USD) | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $903.7 | $958.1 | (5.7)% | | **Gross Profit** | $554.0 | $593.3 | (6.6)% | | **Operating Income** | $116.9 | $192.1 | (39.1)% | | **Net Income** | $70.2 | $151.7 | (53.7)% | | **Diluted EPS** | $0.63 | $1.36 | (53.7)% | - The COVID-19 pandemic materially impacted results, causing store closures and supply chain disruptions, partially offset by **$27.5 million in government wage subsidies**[202](index=202&type=chunk)[203](index=203&type=chunk) - DTC channel revenue grew slightly by **0.6% to $528.2 million**, driven by a **54% increase in e-commerce**, offsetting physical retail store declines[209](index=209&type=chunk)[210](index=210&type=chunk) - Wholesale channel revenue decreased significantly by **24.2% to $321.3 million** due to a reduced order book from pandemic-affected partners[209](index=209&type=chunk)[211](index=211&type=chunk) - Geographically, revenue grew in Asia (up **31.1%**) and Europe/Rest of World (up **6.3%**), but declined in Canada (down **25.7%**) and the United States (down **19.0%**)[213](index=213&type=chunk) [Results of Operations](index=48&type=section&id=Results%20of%20Operations) This section details the company's financial performance, including revenue, gross profit, and net income for fiscal year 2021 Q4 Fiscal Year Performance | Metric | Q4 FY2021 (in millions USD) | Q4 FY2020 (in millions USD) | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $208.8 | $140.9 | 48.2% | | **Gross Profit** | $138.6 | $93.6 | 48.1% | | **Operating Income (Loss)** | $7.8 | $(17.2) | 145.3% | | **Net Income** | $2.9 | $2.5 | 16.0% | - Fourth quarter revenue increased **48.2% year-over-year**, driven by **123.2% growth in e-commerce** and strong Mainland China performance, offsetting North American and European retail declines[238](index=238&type=chunk)[239](index=239&type=chunk) - Full fiscal year gross margin decreased slightly by **60 basis points to 61.3%**, impacted by lower-margin sales from the 'Other' segment, including PPE[208](index=208&type=chunk)[214](index=214&type=chunk) - Full-year SG&A expenses increased by **4.8% to $367.3 million**, driven by e-commerce growth and compensation costs, partially offset by cost reductions and government subsidies[208](index=208&type=chunk)[219](index=219&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=69&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) This section analyzes the company's financial position, liquidity, and capital resources, including cash, working capital, and debt levels - Cash on hand increased significantly to **$477.9 million** as of March 28, 2021, from **$31.7 million** a year prior, driven by improved cash from operations[290](index=290&type=chunk) - Net working capital decreased by **38.2% to $202.1 million**, primarily due to a **$70.0 million reduction in inventory** and a **$33.4 million increase in accounts payable**[288](index=288&type=chunk) - Net debt decreased to **$154.2 million** from **$355.5 million** in the prior year, driven by increased cash offsetting higher Term Loan Facility borrowings[302](index=302&type=chunk) - On October 7, 2020, the company amended its Term Loan Facility, increasing the principal amount to **US$300.0 million** from **US$113.8 million** and extending maturity to 2027[313](index=313&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=76&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the company's exposure to credit, foreign exchange, and interest rate risks, and its strategies for managing them - The company faces credit risk from wholesale partners, managed through credit insurance and internal monitoring, though insurance availability was significantly reduced in fiscal 2021[324](index=324&type=chunk)[325](index=325&type=chunk) - Significant foreign exchange risk exists due to foreign currency denominated revenue, purchases, and expenses, partially hedged with forward contracts[332](index=332&type=chunk)[334](index=334&type=chunk)[335](index=335&type=chunk) - The company is exposed to interest rate risk on variable-rate borrowings; a **1.00% increase** in average interest rate would increase Term Loan Facility annual interest expense by **$2.6 million**[346](index=346&type=chunk) [Directors, Senior Management and Employees](index=84&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section outlines the company's leadership, board structure, executive compensation, and employee base, including pandemic-related rehiring [Compensation](index=92&type=section&id=B.%20Compensation) This section details executive and director compensation, including salary reductions due to COVID-19 and performance-based bonuses - In response to COVID-19, CEO Dani Reiss forewent a portion of his fiscal 2021 salary, with other named executive officers and independent directors taking voluntary pay reductions[404](index=404&type=chunk)[413](index=413&type=chunk) Named Executive Officer Compensation (FY2021) | Name | Position | Total Compensation (FY2021, in USD) | | :--- | :--- | :--- | | Dani Reiss | President & CEO | $13,053,127 | | Jonathan Sinclair | EVP & CFO | $2,735,949 | | Michael (Woody) Blackford | EVP, Product | $1,648,471 | | Pat Sherlock | President, Int'l & EMEA | $1,439,653 | | Penny Brook | Chief Marketing Officer | $1,192,722 | - Fiscal 2021 bonuses were based on EBIT achievement, with the CEO earning **306% of target** and other NEOs earning **203% of target**[416](index=416&type=chunk)[417](index=417&type=chunk) [Employees](index=103&type=section&id=D.%20Employees) This section provides employee numbers, highlighting the significant increase due to rehiring after COVID-19 related temporary layoffs Employee Count by Function | Function | 2021 Employees | 2020 Employees | | :--- | :--- | :--- | | Canadian manufacturing | 2,489 | 389 | | Selling and retail | 557 | 352 | | Corporate head office | 544 | 478 | | **Total** | **3,590** | **1,219** | - Employee count significantly increased from **1,219** in fiscal 2020 to **3,590** in fiscal 2021, primarily due to rehiring staff temporarily laid off during COVID-19 closures[450](index=450&type=chunk) [Major Shareholders and Related Party Transactions](index=101&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section details the company's ownership structure, concentrating voting control with Bain Capital and CEO Dani Reiss, and related party transactions Multiple Voting Share Ownership | Shareholder | Multiple Voting Shares | % of MVS Class | | :--- | :--- | :--- | | Bain Capital Entity | 30,873,742 | 60.5% | | Dani Reiss | 20,130,334 | 39.5% | - The company is a 'controlled company' as Bain Capital beneficially owns approximately **54.2% of the combined voting power**[460](index=460&type=chunk) - An Investor Rights Agreement grants Bain Capital and DTR LLC demand and 'piggy-back' registration rights and the right to nominate directors[461](index=461&type=chunk)[464](index=464&type=chunk)[467](index=467&type=chunk) [Financial Information](index=108&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section addresses ongoing legal proceedings, including class action lawsuits, and the company's policy of retaining earnings for growth instead of paying dividends - The company is defending against multiple putative class action lawsuits, including allegations of false statements regarding inventory and product demand, and coyote fur sourcing[476](index=476&type=chunk)[478](index=478&type=chunk) - The Board of Directors does not intend to pay dividends in the foreseeable future, planning to retain earnings for growth instead[479](index=479&type=chunk) [Additional Information](index=110&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section details the company's dual-class share structure, shareholder rights, and U.S. and Canadian federal income tax considerations - The company's articles establish a dual-class structure, with multiple voting shares having **10 votes per share** and subordinate voting shares having **1 vote per share**[790](index=790&type=chunk)[791](index=791&type=chunk) - A 'Coattail Agreement' protects subordinate shareholders by ensuring equal participation with multiple-vote shareholders in a take-over bid[502](index=502&type=chunk) - The company does not believe it is currently a Passive Foreign Investment Company (PFIC) for U.S. federal income tax purposes, but this determination is annual and subject to change[541](index=541&type=chunk) - Dividends paid to non-Canadian residents are subject to Canadian withholding tax, generally at a **25% rate**, potentially reduced by tax treaties (e.g., to **15% for eligible U.S. residents**)[562](index=562&type=chunk) PART II [Controls and Procedures](index=126&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and internal control over financial reporting were effective as of March 28, 2021 - Management concluded that the company's disclosure controls and procedures were effective as of March 28, 2021[372](index=372&type=chunk) - Management determined that internal control over financial reporting was effective as of March 28, 2021, with no material changes during the fiscal year[374](index=374&type=chunk) [Other Information](index=126&type=section&id=ITEM%2016.%20Other%20Information) This section covers audit committee expertise, code of ethics, auditor fees, and corporate governance practices as a foreign private and controlled company - The Board of Directors has determined that Mr. John Davison is an 'audit committee financial expert'[580](index=580&type=chunk) Fees Paid to Principal Accountant (in millions USD) | Fee Type | FY2021 | FY2020 | | :--- | :--- | :--- | | Audit fees | $3.9 | $4.2 | | Audit-related fees | $0.2 | $0.2 | | Tax fees | $2.0 | $1.2 | | **Total** | **$6.1** | **$5.6** | - As a foreign private issuer and controlled company, Canada Goose follows Canadian practices in lieu of certain NYSE rules regarding board and committee independence[590](index=590&type=chunk)[592](index=592&type=chunk) PART III [Financial Statements](index=129&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section presents audited consolidated financial statements, including the unqualified auditor's report and critical audit matters like inventory obsolescence - The independent auditor, Deloitte LLP, issued an unqualified opinion on the fair presentation of the company's financial position and performance[605](index=605&type=chunk) - The auditor identified 'Inventory Obsolescence' as a critical audit matter due to the significant judgment in estimating net realizable value based on future selling prices and demand[609](index=609&type=chunk)[610](index=610&type=chunk) Consolidated Statements of Financial Position | Metric (in millions CAD) | As of Mar 28, 2021 | As of Mar 29, 2020 | | :--- | :--- | :--- | | **Total Assets** | 1,507.2 | 1,120.3 | | **Total Liabilities** | 907.1 | 600.1 | | **Shareholders' Equity** | 600.1 | 520.2 | Consolidated Statements of Cash Flows | Metric (in millions CAD) | Year Ended Mar 28, 2021 | Year Ended Mar 29, 2020 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | 293.7 | 62.5 | | **Net Cash used in Investing Activities** | (32.0) | (62.3) | | **Net Cash from (used in) Financing Activities** | 197.0 | (58.7) |

Fourth Quarter Fiscal 2021 Highlights (in Canadian dollars): Canada Goose Reports Fourth Quarter Fiscal 2021 Results TORONTO, ON (May 13, 2021) - Canada Goose Holdings Inc. ("Canada Goose" or the "Company") (NYSE:GOOS, TSX:GOOS) today announced financial results for the fourth quarter ended March 28, 2021. "Canada Goose has shifted from recovery to growth beyond pre-pandemic levels," said Dani Reiss, President & CEO. "We achieved our largest ever fourth quarter by revenue. With triple digit e-Commerce growt ...