Canada Goose Holdings Inc. Condensed Consolidated Interim Financial Statements As at and for the second and two quarters ended September 28, 2025 and September 29, 2024 (Unaudited) Condensed Consolidated Interim Statements of (Loss) Income (unaudited) (in millions of Canadian dollars, except per share amounts) | | | | | Second quarter ended | | | Two quarters ended | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | September 28, | September 29, | | September 28, | September 29, | | | Notes | | 2025 ...

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]

Core Insights - Luxury brands are experiencing significant growth during this year's Double 11 shopping festival, with overall sales increasing by double digits year-on-year on Tmall [1] - The shift in luxury consumption is towards lifestyle and quality enhancement, with a notable rise in demand for winter sports gear and high-end home goods [3][5] Group 1: Sales Performance - Tmall's first cycle data shows that luxury brands like Balenciaga, Burberry, and Moncler achieved high double-digit growth in sales [1] - The luxury segment for winter sports equipment saw over 80% year-on-year growth since October, driven by brands like Balenciaga and Zegna [3] - High-end home goods are emerging as a new growth area, with brands like Wedgwood and HAY also reporting double-digit sales increases [3] Group 2: Consumer Trends - Millennials and Gen Z are becoming the main consumers of luxury goods, seeking brands that resonate with their personal aesthetics rather than just logos [5] - Coach experienced a three-digit percentage increase in sales on Tmall's Double 11 opening day, attributed to its unique product lines appealing to younger consumers [5] - The introduction of new products is a key driver for growth, with over 200 luxury brands launching more than 10,000 exclusive items during this year's event [5]

Core Viewpoint - The domestic down jacket brand "Gaofan" has completed a new round of financing led by Shunwei Capital, founded by Lei Jun, indicating a strategic interest in the high-end market segment of the down jacket industry [1][3]. Group 1: Investment Logic of Shunwei Capital - Shunwei Capital focuses on structural growth opportunities in technology, consumer goods, and new brands, particularly in sectors experiencing new consumer segmentation or supply disruptions [3]. - The down jacket market has seen rapid expansion and intense competition, leading to a significant reduction in profit margins for many traditional brands [3]. - Gaofan's strategic pivot to high-end goose down jackets has positioned it uniquely in a market where low-cost competition has intensified, allowing it to escape the price war that has plagued many competitors [4]. Group 2: Market Positioning and Product Strategy - Gaofan's decision to eliminate its duck down product line and focus on high-end goose down jackets has resulted in a nearly sixfold increase in average transaction value and over tenfold profit growth, with GMV exceeding 50 billion [4]. - The brand has established a clear price and value gap by offering products priced between 1,000 to over 5,000 yuan, positioning itself against international luxury brands while maintaining a competitive edge [4]. - Gaofan is also expanding its product offerings to include outdoor items tailored for specific activities such as sailing and skiing, leveraging its expertise in goose down technology [4]. Group 3: Technological and Supply Chain Capabilities - Shunwei Capital is attracted to Gaofan not only for its market positioning but also for its technological and supply chain capabilities, particularly its partnership with a leading smart manufacturing facility [6]. - The collaboration with the world's first "lighthouse factory" enables Gaofan to implement data-driven production management, ensuring product quality and transparency throughout the supply chain [6]. Group 4: Brand Image and Quality Control - Gaofan's high-end strategy is closely tied to its brand image and product quality, which have been enhanced through collaborations with international designers and celebrity endorsements [7]. - Despite efforts to elevate brand awareness, some consumer feedback indicates quality issues with certain products, highlighting the need for consistent quality to support its premium positioning [7]. - The ability to maintain high product quality is crucial for Gaofan to achieve its high-end brand strategy and sustain consumer trust and market competitiveness [7]. Group 5: Conclusion - Gaofan's growth illustrates that high-end positioning is becoming a new growth engine in the down jacket industry, as the demand for quality and functionality increases [8]. - Shunwei Capital recognizes Gaofan's strategic value in addressing market gaps, leveraging technology and supply chain capabilities, and pursuing a clear high-end brand strategy [8].

Core Insights - Canada Goose (GOOS) and MINISO Group Holding Limited (MNSO) are being compared as potential undervalued stocks in the retail apparel and shoes sector [1] - GOOS has a stronger Zacks Rank of 2 (Buy) compared to MNSO's 4 (Sell), indicating a more favorable earnings outlook for GOOS [3] Valuation Metrics - GOOS has a forward P/E ratio of 13.03, while MNSO's forward P/E is 15.70, suggesting that GOOS may be undervalued relative to MNSO [5] - The PEG ratio for GOOS is 0.96, indicating better expected earnings growth relative to its price compared to MNSO's PEG ratio of 1.11 [5] - GOOS has a P/B ratio of 3.94, which is lower than MNSO's P/B ratio of 4.46, further supporting the argument that GOOS is a more attractive value option [6] Earnings Outlook - GOOS is noted for its improving earnings outlook, which enhances its attractiveness as a value investment [7]

分组1 - Tesla reported mixed third-quarter results with strong revenue but earnings missed expectations, leading to a 4% drop in shares [4][9] - IBM's profit topped expectations, but software revenue was disappointing, causing shares to open down approximately 6% [5][6] - Hasbro raised its full-year sales outlook due to improved demand trends ahead of the holiday season, indicating a positive consumer sentiment [10][40] 分组2 - T-Mobile also raised its outlook based on strong demand for the latest Apple iPhone, reflecting robust consumer spending [10] - The earnings season has shown an 8.5% earnings growth versus an expected 8%, with 15-20% of the S&P reporting [12] - Concerns about margin compression are prevalent, especially among the Magnificent 7 tech companies, which are trading at high multiples despite falling earnings growth [13][19] 分组3 - The toy industry is seeing a split consumer behavior, with high-income households spending freely while lower-income families are more price-sensitive [42][44] - Hasbro's sales have accelerated recently, particularly in action figures and board games, suggesting a strong holiday season ahead [46][48] - The company is focusing on cost savings and maintaining price points under $20 to cater to budget-conscious consumers [49][50] 分组4 - Tesla is positioning itself as an AI company, with plans for aggressive rollouts of robo taxis and humanoid robots by 2026, which could significantly impact its valuation [21][24] - The upcoming earnings report from Intel is anticipated to provide further insights into tech and AI spending trends [7][8] - Small-cap stocks have outperformed large caps since August, indicating potential investment opportunities outside the Magnificent 7 [28]

Core Insights - The appointment of Kim Jones as the creative director for Bosideng's high-end series is seen as a significant move towards the company's high-end strategy, resulting in a market response that added HKD 4.7 billion to shareholder value [2][4] - Bosideng's stock price surged nearly 9% to HKD 4.91, marking a recent high, indicating strong investor confidence in the brand's strategic direction [2][4] Market Reaction - Kim Jones' joining is perceived as a pivotal step in Bosideng's strategy for high-end market positioning and international brand recognition [4] - The global downtrend of high-end down jacket brands like Canada Goose presents an opportunity for Bosideng to capture market share [4][12] Industry Context - Kim Jones is a renowned designer with a successful track record at Louis Vuitton and Dior, known for his ability to blend high fashion with streetwear, which aligns with Bosideng's aspirations [6][8] - The fashion industry is witnessing a shift, with established high-end brands facing growth challenges, creating a potential opening for domestic brands like Bosideng [12][13] Financial Performance - Bosideng reported a revenue of CNY 25.9 billion for the fiscal year 2024/25, marking a historical high and a 14.3% increase in net profit to CNY 3.51 billion [12] - The company's marketing expenses have significantly increased, raising concerns about the sustainability of its growth strategy [12][13] Strategic Moves - Bosideng has previously collaborated with various international designers, but Kim Jones' role is more integrated, covering design, visual arts, and global marketing strategies [8] - The brand's high-end series "Dengfeng" was launched with prices exceeding CNY 10,000, although it faced criticism regarding its perceived value [9][11] Competitive Landscape - Bosideng faces multifaceted competition from both high-end brands like Moncler and Canada Goose, as well as cross-category competitors like Lululemon [13] - The brand's ability to establish a strong luxury perception and narrative will be crucial for its success in the high-end market [12][13]

Core Viewpoint - The appointment of Kim Jones as the creative director for Bosideng's high-end series is seen as a significant step in the company's strategy to upscale its brand and product offerings, leading to a notable market response with a stock price increase of nearly 9% [2][4][10]. Company Strategy - Bosideng aims to transition towards a high-end market, as evidenced by its previous initiatives, including a logo redesign and the launch of its first high-end series "Dengfeng" priced above 10,000 yuan [7][8]. - The company has previously collaborated with various international designers, but Kim Jones's role marks a deeper involvement in design, visual arts, and global marketing strategies [6][8]. Market Dynamics - The global down jacket market is experiencing shifts, with traditional high-end brands like Canada Goose facing growth challenges, creating opportunities for domestic brands like Bosideng to capture market share [4][10]. - The competitive landscape is becoming more complex, with Bosideng needing to address both high-end competitors and cross-category challengers [12]. Financial Performance - Bosideng reported a revenue of 25.9 billion yuan for the 2024/25 fiscal year, marking a historical high for eight consecutive years, with a net profit increase of 14.3% to 3.51 billion yuan [10]. - The company's sales and distribution expenses have surged from 2.45 billion yuan to 8.055 billion yuan from 2018 to 2024, indicating a high dependency on marketing for growth [12]. Industry Impact - Kim Jones's appointment is viewed as a pivotal moment for Bosideng, potentially enhancing its brand perception and market positioning in the high-end segment [4][11]. - The fashion industry is witnessing a trend towards rational consumer behavior, where both high-end appeal and cost-effectiveness are prioritized [10].

Company Performance - Canada Goose (GOOS) closed at $14.04, reflecting a -4.03% change from the previous day, underperforming the S&P 500's daily loss of 0.05% [1] - Over the past month, shares of Canada Goose have increased by 31.45%, while the Retail-Wholesale sector gained 4.45% and the S&P 500 gained 3.44% [1] Upcoming Earnings - The upcoming earnings release is highly anticipated, with projected EPS at -$0.05, indicating a 225.00% decline compared to the same quarter last year [2] - Revenue is expected to reach $208.8 million, representing a 6.36% increase from the year-ago quarter [2] Full Year Estimates - For the full year, analysts expect earnings of $0.99 per share and revenue of $1.05 billion, marking increases of +23.75% and +8.22% respectively from the previous year [3] - Recent modifications to analyst estimates are crucial as they reflect near-term business trends, with positive revisions indicating a favorable business outlook [3] Valuation Metrics - Canada Goose has a Forward P/E ratio of 14.85, which is lower than the industry average of 19.49, suggesting it is trading at a discount [6] - The company has a PEG ratio of 1.1, compared to the Retail - Apparel and Shoes industry average PEG ratio of 2.32, indicating a more favorable valuation relative to growth expectations [7] Industry Context - The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector and currently holds a Zacks Industry Rank of 147, placing it in the bottom 41% of over 250 industries [8] - The Zacks Industry Rank evaluates the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Insights - The fifth edition of the Kearney Circular Fashion Index (CFX 2025) tracks the industry's journey towards sustainability, reflecting the growing importance of circularity in global business [1][3] - CFX 2025 provides the most comprehensive view to date, covering 246 brands across 18 countries and five core product categories [1][3] - The report highlights the need for brands to transition from symbolic gestures to systemic changes in their operations [13][17] Summary by Sections Expansion and Methodology - The expanded scope of CFX reflects the increasing significance of circularity and the diversification of brand strategies across regions and segments [3] - CFX evaluates performance across seven dimensions throughout the product lifecycle, distinguishing between primary and secondary market initiatives [6][12] Progress and Trends - Overall progress in circularity appears to be stabilizing rather than accelerating, indicating market maturity [6][7] - Average and median scores increased by 0.20 points, reaching 3.40 and 3.20 respectively, but this is lower than the previous year's growth rate [7][9] - Only 5 brands scored above 7.0, and less than 20% exceeded 5.0, highlighting a widening gap between top performers and the broader market [9][10] Regulatory Environment - Regulatory pressures are intensifying, with new laws in the EU and the US mandating sustainability practices [12][33] - The EU's upcoming regulations will require products to be durable, contain recycled components, and be repairable, pushing brands towards compliance [12][33] Drivers of Change - Leading brands are shifting from symbolic actions to systemic transformations, particularly in circular design and closed-loop initiatives [13][15] - Innovations in materials and design are driving progress, with brands increasingly focusing on lifecycle assessments and sustainable sourcing [15][17] Challenges and Gaps - Despite intentions, execution remains lagging, with many brands stuck in a "medium" maturity state [18][20] - Only 3% to 5% of brands have achieved widespread implementation of circular practices, indicating significant conversion gaps [20][21] - Barriers include limited integration of circular practices into core operations and a lack of clear business cases for investment [26][27] Category-Specific Insights - Different product categories show varying levels of progress, with some segments accelerating while others stagnate [24][25] - High-end and luxury brands are improving overall scores but still face challenges in implementing after-sales services [25][27] Regional Performance - Regional differences in circularity performance are becoming more pronounced, influenced by consumer sentiment and regulatory pressures [31][32] - Europe leads with an average score of 3.6, while North America and Asia-Pacific follow with scores of 3.4 and 2.7 respectively [32][33] Future Directions - The industry must view circularity as a growth lever rather than merely a compliance task, integrating it into design, procurement, and sales processes [35][37] - The next phase of progress will depend on brands' ability to bridge the gap between strategy and execution at scale [36][38]