Canada Goose(GOOS) - 2026 Q1 - Quarterly Report

Condensed Consolidated Interim Financial Statements This section provides an overview of the company's interim financial performance, position, and cash flows Condensed Consolidated Interim Statements of Loss For the first quarter ended June 29, 2025, Canada Goose Holdings Inc. reported a significant increase in net loss and operating loss compared to the prior year, despite revenue growth, primarily driven by a substantial rise in selling, general & administrative expenses | Metric | Q1 FY2026 (June 29, 2025) (CAD millions) | Q1 FY2025 (June 30, 2024) (CAD millions) | Change (CAD millions) | Change (%) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------- | :--------- | | Revenue | 107.8 | 88.1 | 19.7 | 22.4% | | Gross profit | 66.2 | 52.6 | 13.6 | 25.9% | | Selling, general & administrative expenses | 224.9 | 149.5 | 75.4 | 50.4% | | Operating loss | (158.7) | (96.9) | (61.8) | 63.8% | | Net loss | (125.5) | (74.0) | (51.5) | 69.6% | | Loss per share (Basic and diluted) | (1.29) | (0.80) | (0.49) | 61.3% | Condensed Consolidated Interim Statements of Comprehensive Loss The company's comprehensive loss widened in Q1 FY2026, reflecting the increased net loss, partially offset by a higher cumulative translation adjustment gain | Metric | Q1 FY2026 (June 29, 2025) (CAD millions) | Q1 FY2025 (June 30, 2024) (CAD millions) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | | Net loss | (125.5) | (74.0) | | Other comprehensive income | 11.5 | 4.2 | | Comprehensive loss | (114.0) | (69.8) | Condensed Consolidated Interim Statements of Financial Position As of June 29, 2025, total assets increased year-over-year, driven by higher cash balances, while total liabilities decreased, leading to an increase in total equity | Metric | June 29, 2025 (CAD millions) | June 30, 2024 (CAD millions) | March 30, 2025 (CAD millions) | | :-------------------------- | :--------------------------- | :--------------------------- | :---------------------------- | | Total assets | 1,530.5 | 1,460.5 | 1,631.9 | | Cash | 180.5 | 61.9 | 334.4 | | Inventories | 439.5 | 484.3 | 384.0 | | Total liabilities | 1,083.9 | 1,105.1 | 1,075.3 | | Total equity | 446.6 | 355.4 | 556.6 | Condensed Consolidated Interim Statements of Changes in Equity Total equity increased year-over-year, primarily due to share-based payments and other comprehensive income, despite the net loss attributable to shareholders | Metric | June 29, 2025 (CAD millions) | June 30, 2024 (CAD millions) | | :--------------------------------------- | :--------------------------- | :--------------------------- | | Balance at period end (Total equity) | 446.6 | 355.4 | | Net loss attributable to shareholders of the Company | (125.2) | (77.4) | | Other comprehensive income | 11.7 | 4.2 | | Share-based payment | 4.0 | 2.3 | Condensed Consolidated Interim Statements of Cash Flows Net cash used in operating activities remained stable year-over-year, while net cash used in investing activities decreased. A shift from net cash inflow to outflow in financing activities resulted in a larger overall decrease in cash for the period | Metric | Q1 FY2026 (June 29, 2025) (CAD millions) | Q1 FY2025 (June 30, 2024) (CAD millions) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net cash used in operating activities | (142.8) | (142.9) | | Net cash used in investing activities | (1.3) | (2.3) | | Net cash (used in) from financing activities | (12.0) | 59.7 | | Decrease in cash | (153.9) | (83.0) | | Cash, end of period | 180.5 | 61.9 | Notes to the Condensed Consolidated Interim Financial Statements This section provides detailed notes on accounting policies, segment information, and financial risk management Note 1. The Company Canada Goose Holdings Inc. is a luxury apparel company publicly listed on the TSX and NYSE, with a majority of voting power held by Bain Capital and DTR LLC. The company operates through DTC, Wholesale, and Other segments, and its business is highly seasonal, with peak revenues and cash flows concentrated in later fiscal quarters - Canada Goose designs, manufactures, and sells performance luxury apparel, including down-filled outerwear, jackets, fleece, and accessories[11] - The company is listed on the Toronto Stock Exchange and New York Stock Exchange under the symbol "GOOS"[12] - Principal shareholders, Bain Capital and DTR LLC, hold 52.5% of total shares outstanding and 91.7% of combined voting power as of June 29, 2025[12] Organization This section details the company's product categories and seasonal offerings - The Company's product offerings include various styles of down-filled outerwear, rain and everyday jackets, fleece, vests, apparel, footwear, and accessories for fall, winter, and spring seasons[11] Statement of Compliance This section outlines the accounting standards used for preparing the interim financial statements and their authorization - Interim Financial Statements are prepared in accordance with IFRS Accounting Standards, specifically IAS 34, Interim Financial Reporting[13] - The Interim Financial Statements were authorized for issuance by the Board of Directors on July 30, 2025[14] Fiscal Year This section defines the company's fiscal year structure and reporting cycle - The Company's fiscal year is a 52 or 53-week reporting cycle, with the fiscal year ending on the Sunday closest to March 31. Fiscal 2026 is a 52-week fiscal year[15] Operating Segments This section describes the company's three operating segments: Direct-to-Consumer, Wholesale, and Other - The Company classifies its business into three operating and reportable segments: Direct-to-Consumer (DTC), Wholesale, and Other[16] - The DTC segment includes sales through e-Commerce platforms (including recommerce) and Company-owned retail stores[16] - The Wholesale segment comprises sales to retailers, international distributors, and travel retail locations[17] Seasonality This section explains the seasonal nature of the company's business, impacting revenue and cash flow patterns - The business is seasonal, with a significant portion of Wholesale revenue and operating income realized in the second and third quarters, and DTC revenue and operating income in the third and fourth quarters[20] - Cash flows from operating activities are typically highest in the third and fourth quarters due to DTC revenue and collection of Wholesale trade receivables[21] Note 2. Material Accounting Policy Information The interim financial statements are presented in Canadian dollars under IFRS Accounting Standards, with consistent application of accounting policies from the prior annual statements, except for minor reclassifications. The company is currently evaluating the impact of new IFRS standards, including IFRS 18, which will significantly change financial performance reporting - The Interim Financial Statements are presented in Canadian dollars, the Company's functional and presentation currency[22] - Management reclassified $9.8 million and $15.2 million from accounts payable and accrued liabilities to trade receivables as at June 30, 2024 and March 30, 2025, respectively, for sales taxes[24] Basis of Presentation This section outlines the currency and consistent application of accounting policies for the interim financial statements - Accounting policies and critical accounting estimates from the audited annual financial statements for March 30, 2025, have been applied consistently[22] Principles of Consolidation This section describes the consolidation of the company's and its subsidiaries' accounts, eliminating intercompany transactions - The Interim Financial Statements include the accounts of the Company and its subsidiaries, with all intercompany transactions and balances eliminated[25] Standards Issued and Not Yet Adopted This section discusses new IFRS standards, including IFRS 18, and their potential impact on financial reporting - Amendments to IFRS 9 and IFRS 7 (May 2024) clarify financial instrument recognition, derecognition, and disclosure, effective January 1, 2026. The Company is evaluating the impact[28] - IFRS 18 (April 2024) replaces IAS 1 to improve financial performance reporting, introducing a defined income statement structure and specific disclosure requirements for management-defined performance measures. Effective January 1, 2027, with earlier application permitted. The Company is evaluating the impact[29] Note 3. Segment Information In Q1 FY2026, Canada Goose saw revenue growth across all segments, particularly DTC, but total segment operating loss widened due to a significant increase in corporate expenses. Geographically, North America and Asia Pacific remain the largest revenue contributors, both showing growth - The Company measures segment performance based on revenue and segment operating loss, as utilized by the chief operating decision maker[30] - Corporate expenses, including marketing and management overhead, significantly increased to $(127.2) million in Q1 FY2026 from $(69.0) million in Q1 FY2025[33] Segment Performance This section details revenue and operating loss performance across DTC, Wholesale, and Other segments | Metric | Q1 FY2026 (June 29, 2025) (CAD millions) | Q1 FY2025 (June 30, 2024) (CAD millions) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | | Revenue | | | | DTC | 78.1 | 63.1 | | Wholesale | 17.9 | 16.0 | | Other | 11.8 | 9.0 | | Total segment revenue | 107.8 | 88.1 | | Operating loss | | | | DTC | (23.4) | (23.1) | | Wholesale | (3.5) | (4.1) | | Other | (4.6) | (0.7) | | Total segment operating loss | (31.5) | (27.9) | | Corporate expenses | (127.2) | (69.0) | | Total operating loss | (158.7) | (96.9) | | Metric | Q1 FY2026 (June 29, 2025) (CAD millions) | Q1 FY2025 (June 30, 2024) (CAD millions) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Total depreciation and amortization expense | 28.2 | 30.0 | | - DTC | 23.1 | 24.7 | | - Wholesale | 0.8 | 1.0 | | - Other | 0.3 | 0.3 | | - Corporate expenses | 4.0 | 4.0 | Geographic Information This section presents revenue and non-current asset distribution across North America, Asia Pacific, and EMEA regions | Region | Q1 FY2026 (June 29, 2025) (CAD millions) | Q1 FY2025 (June 30, 2024) (CAD millions) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | | Canada | 24.4 | 21.9 | | United States | 26.9 | 18.5 | | North America | 51.3 | 40.4 | | Greater China | 26.0 | 21.9 | | Asia Pacific (excluding Greater China) | 13.0 | 8.9 | | Asia Pacific | 39.0 | 30.8 | | EMEA | 17.5 | 16.9 | | Total revenue | 107.8 | 88.1 | | Region | June 29, 2025 (CAD millions) | June 30, 2024 (CAD millions) | March 30, 2025 (CAD millions) | | :-------------------------------- | :--------------------------- | :--------------------------- | :---------------------------- | | Canada | 201.4 | 216.1 | 202.2 | | United States | 107.0 | 134.3 | 118.7 | | North America | 308.4 | 350.4 | 320.9 | | Greater China | 49.5 | 72.9 | 60.0 | | Asia Pacific (excluding Greater China) | 47.4 | 43.2 | 47.5 | | Asia Pacific | 96.9 | 116.1 | 107.5 | | EMEA | 153.7 | 126.6 | 145.3 | | Non-current, non-financial assets | 559.0 | 593.1 | 573.7 | Note 4. Earnings Per Share Basic and diluted loss per share increased significantly in Q1 FY2026 due to a higher net loss attributable to shareholders, despite a slight increase in the weighted average number of shares outstanding. Potentially dilutive shares were excluded as their effect was anti-dilutive | Metric | Q1 FY2026 (June 29, 2025) | Q1 FY2025 (June 30, 2024) | | :--------------------------------------- | :------------------------ | :------------------------ | | Net loss attributable to shareholders of the Company (CAD millions) | (125.2) | (77.4) | | Weighted average number of shares outstanding | 96,913,707 | 96,611,725 | | Loss per share (Basic and diluted) | (1.29) | (0.80) | - 1,544,848 potentially dilutive shares were excluded from the calculation of diluted loss per share for Q1 FY2026 (1,138,989 shares for Q1 FY2025) because their effect was anti-dilutive[41] Note 5. Trade Receivables Trade receivables increased year-over-year, primarily driven by higher trade accounts receivable and sales tax receivables, partially offset by expected credit losses and sales allowances | Metric | June 29, 2025 (CAD millions) | June 30, 2024 (CAD millions) | March 30, 2025 (CAD millions) | | :-------------------------------- | :--------------------------- | :--------------------------- | :---------------------------- | | Trade accounts receivable | 45.3 | 37.6 | 68.6 | | Sales tax receivables | 24.4 | 21.2 | 22.9 | | Credit card receivables | 3.5 | 2.3 | 4.5 | | Other receivables | 2.3 | 1.4 | 4.5 | | Less: expected credit loss and sales allowances | (2.4) | (2.3) | (2.5) | | Trade receivables | 73.1 | 60.2 | 98.0 | Note 6. Inventories Total inventories decreased year-over-year, mainly due to reductions in finished goods and raw materials. The provision for inventory obsolescence also decreased, reflecting improved inventory management or sales | Metric | June 29, 2025 (CAD millions) | June 30, 2024 (CAD millions) | March 30, 2025 (CAD millions) | | :--------------------------------------- | :--------------------------- | :--------------------------- | :---------------------------- | | Raw materials | 33.2 | 44.6 | 35.7 | | Work in progress | 17.8 | 19.6 | 17.1 | | Finished goods | 388.5 | 420.1 | 331.2 | | Total inventories | 439.5 | 484.3 | 384.0 | | Provision for inventory obsolescence | 49.1 | 62.4 | 50.8 | | Metric | Q1 FY2026 (June 29, 2025) (CAD millions) | Q1 FY2025 (June 30, 2024) (CAD millions) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Cost of goods manufactured | 38.6 | 32.8 | | Depreciation and amortization in costs of sales | 3.0 | 2.7 | | Cost of sales | 41.6 | 35.5 | Note 7. Leases Both right-of-use assets and lease liabilities decreased year-over-year, influenced by lease modifications, derecognitions, and foreign currency translation impacts. The majority of lease payments not included in liabilities relate to short-term leases and variable rent - For Q1 FY2026, $4.6 million of lease payments were not included in the measurement of lease liabilities, primarily related to short-term leases and variable rent payments[47] Right-of-Use Assets This section details the net book value, additions, and depreciation of the company's right-of-use assets | Metric | June 29, 2025 (CAD millions) | June 30, 2024 (CAD millions) | March 30, 2025 (CAD millions) | | :-------------------- | :--------------------------- | :--------------------------- | :---------------------------- | | Net book value | 268.9 | 293.8 | 280.2 | | Additions | 6.4 | 31.0 | N/A | | Depreciation | 20.3 | 20.7 | N/A | Lease Liabilities This section outlines current and non-current lease liabilities, including principal payments and total obligations | Metric | June 29, 2025 (CAD millions) | June 30, 2024 (CAD millions) | March 30, 2025 (CAD millions) | | :-------------------------- | :--------------------------- | :--------------------------- | :---------------------------- | | Total lease liabilities | 320.7 | 344.7 | 330.8 | | Current lease liabilities | 84.2 | 82.5 | 83.9 | | Non-current lease liabilities | 236.5 | 262.2 | 246.9 | | Principal payments | (19.4) | (20.8) | N/A | Note 8. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities significantly increased year-over-year, primarily due to a one-time arbitration award of $43.8 million (USD32.0 million) against the company, which was recognized in SG&A expenses - An arbitration concluded with an unfavorable judgment against the Company, requiring a one-time financial award of USD32.0 million ($43.8 million) to a former supplier, inclusive of legal costs[49][51] - The $43.8 million arbitration award was recorded as an accrued liability and recognized in SG&A expenses in the interim statements of loss[51] | Metric | June 29, 2025 (CAD millions) | June 30, 2024 (CAD millions) | March 30, 2025 (CAD millions) | | :-------------------------------- | :--------------------------- | :--------------------------- | :---------------------------- | | Trade payables | 64.7 | 39.9 | 51.4 | | Accrued liabilities | 130.4 | 68.2 | 86.8 | | Employee benefits | 27.0 | 30.5 | 31.6 | | Derivative financial instruments | 4.3 | 1.6 | 2.6 | | Other payables | 10.5 | 13.9 | 14.3 | | Accounts payable and accrued liabilities | 236.9 | 154.1 | 186.7 | Note 9. Provisions Total provisions decreased year-over-year, primarily driven by a reduction in sales returns provisions, while warranty provisions remained stable | Metric | June 29, 2025 (CAD millions) | June 30, 2024 (CAD millions) | March 30, 2025 (CAD millions) | | :-------------------- | :--------------------------- | :--------------------------- | :---------------------------- | | Current provisions | 35.7 | 40.8 | 40.1 | | - Warranty | 27.9 | 28.6 | 29.0 | | - Sales returns | 7.8 | 12.2 | 11.1 | | Non-current provisions | 16.3 | 14.6 | 16.0 | | - Asset retirement obligations | 16.3 | 14.6 | 16.0 | | Total provisions | 52.0 | 55.4 | 56.1 | Note 10. Borrowings The company's short-term borrowings decreased year-over-year, with no outstanding amounts on the Revolving Facility or Mainland China Facilities as of June 29, 2025. The Term Loan principal amount slightly decreased, while net interest, finance and other costs increased due to changes in foreign exchange and fair value remeasurements - The Company was in compliance with all covenants for its Revolving Facility and Term Loan as at and during the first quarter ended June 29, 2025[56][60] Revolving Facility This section describes the company's Revolving Facility, its capacity, maturity, and current outstanding borrowings - The Company has a $467.5 million Revolving Facility, increasing to $517.5 million during peak season (June 1 - November 30), maturing May 15, 2028[54] - No borrowings outstanding on the Revolving Facility as at June 29, 2025 (June 30, 2024: $54.3 million)[56] - Unused borrowing capacity available under the Revolving Facility was $271.2 million as at June 29, 2025 (June 30, 2024: $335.2 million)[57] Term Loan This section details the Term Loan's principal amount, repayment schedule, maturity, and outstanding balance - The Term Loan has an aggregate principal amount of USD300.0 million, with quarterly repayments of USD0.75 million and a maturity date of October 7, 2027[59] - USD287.3 million aggregate principal amount outstanding under the Term Loan as at June 29, 2025 (June 30, 2024: USD289.5 million)[60] | Metric | June 29, 2025 (CAD millions) | June 30, 2024 (CAD millions) | March 30, 2025 (CAD millions) | | :------------------------------------------------ | :--------------------------- | :--------------------------- | :---------------------------- | | Term Loan, net of unamortized deferred transaction costs | 392.7 | 395.5 | 412.0 | Mainland China Facilities This section outlines the uncommitted loan facilities available to the Mainland China subsidiary and current utilization - A subsidiary in Mainland China has uncommitted loan facilities totaling RMB560.0 million ($106.8 million)[62] - No amounts owing on the Mainland China Facilities as at June 29, 2025 (June 30, 2024: $16.6 million)[62] Japan Facility This section describes the loan facility available to the Japan subsidiary and its current outstanding balance - A subsidiary in Japan has a loan facility of JPY4,000.0 million ($37.8 million)[64] - $8.5 million (JPY900.0 million) owing on the Japan Facility as at June 29, 2025 (June 30, 2024: $16.2 million (JPY1,900.0 million))[64] Short-term Borrowings This section summarizes the company's short-term borrowing balances from various facilities | Metric | June 29, 2025 (CAD millions) | June 30, 2024 (CAD millions) | March 30, 2025 (CAD millions) | | :-------------------------- | :--------------------------- | :--------------------------- | :---------------------------- | | Mainland China Facilities | — | 16.6 | — | | Japan Facility | 8.5 | 16.2 | — | | Term Loan | 4.1 | 4.0 | 4.3 | | Total short-term borrowings | 12.6 | 36.8 | 4.3 | Net Interest, Finance and Other Costs This section details components of net interest, finance, and other costs, including foreign exchange and fair value remeasurements | Metric | Q1 FY2026 (June 29, 2025) (CAD millions) | Q1 FY2025 (June 30, 2024) (CAD millions) | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Interest expense (Total) | 9.0 | 9.9 | | Foreign exchange (gains) losses on Term Loan net of hedges | (3.5) | 1.7 | | Fair value remeasurement on the put option liability | 1.1 | 2.1 | | Fair value remeasurement on the contingent consideration | (0.1) | (10.7) | | Interest income | (1.6) | (0.3) | | Net interest, finance and other costs | 5.4 | 3.2 | Note 11. Shareholders' Equity Total share capital increased slightly year-over-year, primarily due to the settlement of Restricted Share Units (RSUs). The company did not make any repurchases under its Fiscal 2025 NCIB during the quarter, contrasting with prior year activity which included significant share repurchases and a tax on those repurchases Share Capital Transactions for Fiscal 2025 This section details share capital changes for Q1 FY2026, including RSU settlements and no NCIB repurchases - The Company made no repurchases under the Fiscal 2025 NCIB during the first quarter ended June 29, 2025[70] | Metric | June 29, 2025 | March 30, 2025 | | :-------------------------------- | :------------ | :------------- | | Total share capital (CAD millions) | 113.3 | 109.6 | | Subordinate voting shares issued (Number) | 233,585 | N/A | | Subordinate voting shares issued (CAD millions) | 3.7 | N/A | Share Capital Transactions for Fiscal 2024 This section details share capital changes for Q1 FY2025, including RSU settlements, NCIB repurchases, and related tax - The Company made no repurchases under the Fiscal 2024 NCIB during the first quarter ended June 30, 2024[74] - Since the commencement of the Fiscal 2024 NCIB, the Company purchased 3,586,124 subordinate voting shares for $56.9 million[74] - A $0.6 million tax on share repurchases was recorded in Q1 FY2025 and charged to retained earnings[75] | Metric | June 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------ | :------------- | | Total share capital (CAD millions) | 108.8 | 104.9 | | Subordinate voting shares issued (Number) | 198,359 | N/A | | Subordinate voting shares issued (CAD millions) | 3.9 | N/A | Note 12. Share-Based Payments Share-based compensation expense increased year-over-year. The company granted more stock options, RSUs, and PSUs in Q1 FY2026 compared to Q1 FY2025, leading to a higher number of outstanding units across all programs - For Q1 FY2026, the Company recorded $4.1 million as compensation expense for the vesting of stock options, RSUs, and PSUs (Q1 FY2025: $2.2 million), included in SG&A expenses[85] Stock Options This section provides details on stock options, including outstanding units, grants, and weighted average exercise prices | Metric | Q1 FY2026 (June 29, 2025) | Q1 FY2025 (June 30, 2024) | | :-------------------------------- | :------------------------ | :------------------------ | | Options outstanding, end of period | 5,873,209 | 4,954,543 | | Granted | 1,151,845 | 770,434 | | Weighted average exercise price (Granted) | $16.82 | $18.98 | | Weighted average fair value of options issued | $5.40 | $6.43 | Restricted Share Units (RSUs) This section outlines RSU grants, settlements, outstanding units, and their weighted average fair value - RSUs are treated as equity instruments and vest over three years, with settlement expected through the issuance of one subordinate voting share per RSU[80] | Metric | Q1 FY2026 (June 29, 2025) | Q1 FY2025 (June 30, 2024) | | :-------------------------------- | :------------------------ | :------------------------ | | RSUs outstanding, end of period | 829,806 | 674,805 | | Granted | 462,184 | 402,440 | | Settled | (233,585) | (171,875) | | Weighted average fair value of RSUs | $16.82 | $18.98 | Performance Share Units (PSUs) This section details PSU grants, outstanding units, vesting conditions, and weighted average fair value - PSUs vest on the third anniversary of the award date and are earned based on certain performance targets, with shares issued ranging from 0% to 200% of the award[81] | Metric | Q1 FY2026 (June 29, 2025) | Q1 FY2025 (June 30, 2024) | | :-------------------------------- | :------------------------ | :------------------------ | | PSUs outstanding, end of period | 1,160,222 | 717,277 | | Granted | 415,892 | 488,260 | | Weighted average fair value of PSUs | $16.82 | $18.98 | Shares Reserved for Issuance This section specifies the maximum number of subordinate voting shares reserved for issuance under equity incentive plans - As of June 29, 2025, a maximum of 2,228,536 subordinate voting shares have been reserved for issuance under equity incentive plans[84] Accounting for Share-Based Awards This section outlines key assumptions for valuing share-based awards, including stock price, interest rate, and volatility | Assumption | Q1 FY2026 (June 29, 2025) | Q1 FY2025 (June 30, 2024) | | :-------------------------- | :------------------------ | :------------------------ | | Weighted average stock price valuation | $16.82 | $18.98 | | Weighted average exercise price | $16.82 | $18.98 | | Risk-free interest rate | 2.69% | 4.17% | | Expected life in years | 5 | 5 | | Expected dividend yield | —% | —% | | Volatility | 40% | 40% | Note 13. Related Party Transactions The company engages in various related party transactions, including business services, lease liabilities with former controlling shareholders and joint venture partners, and an Earn-Out payment related to the Paola Confectii acquisition. Total expenses and balances owing to related parties increased year-over-year | Metric | Q1 FY2026 (June 29, 2025) (CAD millions) | Q1 FY2025 (June 30, 2024) (CAD millions) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Transactions with related parties | 0.8 | 0.5 | | Balances owing to related parties | 0.5 | 0.4 | | Lease liability due to Baffin Vendor | 1.4 | 2.3 | | Lease liabilities due to Sazaby League (Japan Joint Venture) | 1.4 | 1.6 | | Earn-Out remuneration costs (Paola Confectii) | 8.5 | 0.9 | - The Earn-Out remuneration costs for the Paola Confectii business combination are based on an estimated value of $23.0 million, contingent on controlling shareholders remaining employees through November 1, 2025, and meeting certain performance conditions[91] Note 14. Financial Instruments and Fair Value The company holds various financial instruments, including derivatives, borrowings, and liabilities related to put options and contingent consideration, categorized into Level 2 and Level 3 of the fair value hierarchy. Remeasurement of contingent consideration resulted in a decrease, while the put option liability increased, driven by the progression through their 10-year terms | Metric | June 29, 2025 (CAD millions) | June 30, 2024 (CAD millions) | March 30, 2025 (CAD millions) | | :--------------------------------------- | :--------------------------- | :--------------------------- | :---------------------------- | | Derivatives in other current assets | 10.8 | 14.7 | 24.2 | | Earn-Out in accounts payable and accrued liabilities | 17.6 | 2.3 | 9.0 | | Put option liability in other long-term liabilities | 39.7 | 30.0 | 39.0 | | Contingent consideration in other long-term liabilities | 1.4 | 6.2 | 1.5 | - For Q1 FY2026, the Company recorded a decrease of $0.1 million on the remeasurement of contingent consideration and an increase of $0.7 million on the remeasurement of the put option liability[96] - The change in fair value for contingent consideration and put option liability was driven by progression through their 10-year terms[96] Note 15. Financial Risk Management Objectives and Policies Canada Goose manages capital, liquidity, credit, and market risks (foreign exchange and interest rate) to protect assets and cash flow. Strategies include maintaining sufficient working capital, utilizing credit facilities, employing credit insurance for receivables, and using forward foreign exchange contracts and interest rate swaps to hedge currency and interest rate exposures - The Company's primary risk management objective is to protect assets and cash flow to increase enterprise value[98] - The Board of Directors oversees the management of capital, liquidity, credit, market, foreign exchange, and interest rate risks[99] Capital Management This section describes the company's objectives for managing capital to ensure working capital and long-term growth resources - The Company manages its capital to safeguard sufficient working capital over the annual operating cycle and provide financial resources for long-term growth[100] Liquidity Risk This section outlines how the company manages liquidity to meet operational needs, capital expenditures, and debt service - The Company ensures sufficient liquidity for business operations, capital expenditures, debt service, and general corporate purposes under normal and stressed conditions[101] - Primary liquidity sources are operating activities, Mainland China Facilities, Japan Facility, and Revolving Facility[101] | Contractual obligations by fiscal year | Q2 to Q4 2026 (CAD millions) | 2027 (CAD millions) | 2028 (CAD millions) | 2029 (CAD millions) | 2030 (CAD millions) | 2031 (CAD millions) | Thereafter (CAD millions) | Total (CAD millions) | | :------------------------------------ | :--------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | :------------------ | :------------------------ | :------------------- | | Accounts payable and accrued liabilities | 236.9 | — | — | — | — | — | — | 236.9 | | Japan Facility | 8.5 | — | — | — | — | — | — | 8.5 | | Term Loan | 3.0 | 4.1 | 385.9 | — | — | — | — | 393.0 | | Interest commitments relating to borrowings | 23.5 | 31.2 | 15.6 | — | — | — | — | 70.3 | | Lease obligations | 83.4 | 89.5 | 61.6 | 51.7 | 40.7 | 32.1 | 47.3 | 406.3 | | Pension obligation | — | — | — | — | — | — | 0.9 | 0.9 | | Total contractual obligations | 355.3 | 124.8 | 463.1 | 51.7 | 40.7 | 32.1 | 48.2 | 1,115.9 | Credit Risk This section details the company's strategies for managing credit risk, including credit insurance and customer monitoring - Credit risk is managed through third-party credit insurance and internal monitoring of customer creditworthiness[107] - Approximately $9.0 million of trade accounts receivable were insured as at June 29, 2025 (June 30, 2024: $12.0 million), subject to a policy cap of $30.0 million per year[107] - A trade accounts receivable factoring program in Europe was terminated on April 12, 2024, with an immaterial impact[109] Market Risk This section describes the company's exposure to market risks, specifically foreign exchange and interest rate fluctuations - Market risk encompasses foreign exchange risk and interest rate risk, which can cause fluctuations in the fair value of future cash flows[111] Foreign Exchange Risk This section details the company's exposure to foreign exchange risk and its use of forward contracts and cash flow hedges - The Company uses forward foreign exchange contracts to reduce foreign exchange risk associated with revenues, purchases, and expenses denominated in currencies such as USD, EUR, GBP, CNY, and JPY[112] | Metric | Q1 FY2026 (June 29, 2025) (CAD millions) | Q1 FY2025 (June 30, 2024) (CAD millions) | | :---------------------------------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net loss on derivatives designated as cash flow hedges (OCI) | (0.1) | 0.1 | | Reclassification of net loss (gain) on cash flow hedges to income (Revenue) | (0.5) | 0.1 | | Reclassification of net loss (gain) on cash flow hedges to income (SG&A expenses) | (0.2) | (0.2) | | Reclassification of net loss (gain) on cash flow hedges to income (Inventory) | (0.1) | — | | Unrealized gains on non-hedge forward contracts (SG&A expenses) | 1.9 | 0.3 | | Unrealized losses on swaps designated as cash flow hedges (OCI) | (1.6) | (1.2) | | Reclassification of losses (gains) from OCI on swaps to net interest, finance and other costs | 0.8 | (0.3) | | Unrealized losses on long-dated forward exchange contract for Term Loan (net interest, finance and other costs) | 14.7 | (2.2) | - The Company entered into a five-year forward exchange contract to fix foreign exchange risk on a portion of the USD300.0 million Term Loan, selling $368.5 million and receiving USD270.0 million[118] Interest Rate Risk This section outlines the company's interest rate risk exposure on floating-rate debt and mitigation through interest rate swaps - The Company is exposed to interest rate risk on the Japan Facility (0.93%) and the Term Loan (7.94%)[120] - Interest rate risk on the Term Loan is partially mitigated by five-year interest rate swap agreements (terminating December 31, 2025) on a notional debt of USD270.0 million, with an average fixed rate of 1.76%[121] - A 1.00% increase in interest rates would increase interest expense by less than $0.1 million on the Japan Facility and $1.0 million on the Term Loan for Q1 FY2026[122] Note 16. Selected Cash Flow Information Changes in non-cash operating items contributed to cash flow, with a significant decrease in inventories and an increase in trade receivables. Financing activities saw a shift from borrowings to repayments and principal payments on lease liabilities, alongside unrealized foreign exchange gains on the Term Loan Changes in Non-Cash Operating Items This section details the impact of changes in non-cash operating items, like inventories and trade receivables, on cash flow | Metric | Q1 FY2026 (June 29, 2025) (CAD millions) | Q1 FY2025 (June 30, 2024) (CAD millions) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | | Trade receivables | 24.3 | 10.7 | | Inventories | (57.6) | (39.2) | | Other current assets | (8.6) | (5.5) | | Accounts payable and accrued liabilities | (4.4) | (25.3) | | Provisions | (4.4) | (7.8) | | Other | 21.5 | 4.0 | | Change in non-cash operating items | (29.2) | (63.1) | Changes in Liabilities and Equity Arising from Financing Activities This section outlines changes in liabilities and equity from financing activities, including borrowings, repayments, and lease liabilities | Metric | Q1 FY2026 (June 29, 2025) (CAD millions) | Q1 FY2025 (June 30, 2024) (CAD millions) | | :---------------------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Japan Facility borrowings | 8.5 | 10.8 | | Term Loan repayments | (1.1) | (1.0) | | Principal payments on lease liabilities | (19.4) | (20.8) | | Unrealized foreign exchange gain (Term Loan) | (18.3) | 4.0 (loss) | | Additions and amendments to lease liabilities | 13.8 | 33.7 | | Contributed surplus on share issuances | 3.7 | 3.9 |