Canada Goose Reports Second Quarter Fiscal 2026 Results

Core Insights - Canada Goose reported a 1.8% increase in total revenue to CAD 272.6 million for the second quarter of fiscal 2026, with direct-to-consumer (DTC) revenue growing by 21.8% to CAD 126.6 million, driven by a 10.2% increase in DTC comparable sales [3][9] - The company experienced an operating loss of CAD 17.6 million, compared to an operating income of CAD 1.6 million in the prior year, primarily due to increased selling, general, and administrative (SG&A) expenses [3][9] - Net loss attributable to shareholders was CAD 15.2 million, or CAD 0.16 per share, compared to a net income of CAD 5.4 million, or CAD 0.06 per share, in the same quarter last year [9][20] Business Highlights - The launch of the Fall/Winter 2025 collection emphasized modern urban storytelling and bold designs, enhancing brand engagement through partnerships, including a collaboration with NBA MVP Shai Gilgeous-Alexander [2][3] - The company relocated its Paris store to Champs-Élysées, enhancing the consumer experience with a new design and curated selections from its art collection [3] - Canada Goose opened one new store during the quarter, bringing the total permanent store count to 77 [3] Financial Performance - DTC revenue growth was attributed to improved execution, a stronger mix of in-season products, and consistent marketing efforts [3] - Wholesale revenue decreased by 1.0% to CAD 135.9 million, aligning with revenue from the comparative quarter [3] - Other revenue saw a significant decline of 62.0% to CAD 10.1 million, primarily due to fewer Friends & Family events and employee sales [3] Balance Sheet and Debt Management - Inventory decreased by 3% year-over-year to CAD 460.7 million, reflecting higher demand and proactive inventory management [4] - The company ended the quarter with net debt of CAD 707.1 million, down from CAD 826.4 million a year earlier, due to disciplined working capital management and cash generated from operations [5] Corporate Governance - Stephen Gunn retired from the Board of Directors, and Belinda Wong was appointed as an audit committee financial expert [6] Shareholder Returns - Canada Goose announced an early renewal of its normal course issuer bid (NCIB), allowing for the purchase of up to 4,578,677 subordinate voting shares over the next twelve months [7][8]