By region, Bowden reported that North America revenue grew 20% , with comparable sales up in the high single digits, supported by strong traffic and improved conversion in both Canada and the U.S. He attributed improved retail execution to staffing investments and better inventory positioning, while e-commerce also contributed to positive D2C performance.D2C revenue rose 13%, supported by double-digit growth in North America and Asia Pacific. Comparable sales increased 6%, marking the fourth consecutive qua ...

Canada Goose (NYSE:GOOS) Q3 2026 Earnings call February 05, 2026 08:30 AM ET Company ParticipantsAna Raman - VP of Investor RelationsBeth Clymer - President and COOBrooke Roach - Managing Director of Equity ResearchCarrie Baker - President of Brand and CommercialDani Reiss - Chairman and CEONeil Bowden - CFOOliver Chen - Managing Director of Retail, Luxury, New Platforms Sector HeadSuraj Malhotra - Equity Research AssociateConference Call ParticipantsJonathan Komp - Senior Research AnalystOperatorLadies and ...

Financial Data and Key Metrics Changes - Revenue for Q3 increased by 13% year-over-year to CAD 695 million, driven by strong growth in both D2C and wholesale channels in North America and Asia Pacific [16][17] - Adjusted EBIT for Q3 was CAD 204 million, translating to an adjusted EBIT margin of 29.3%, which is 450 basis points lower than the previous year [22] - Adjusted net income attributable to shareholders was CAD 142 million, or CAD 1.43 per diluted share, compared to CAD 148 million or CAD 1.51 per diluted share last year [22] Business Line Data and Key Metrics Changes - Direct-to-consumer (D2C) revenue grew 13% in Q3, with comparable sales up 6%, marking the fourth consecutive quarter of positive comps [10][16] - Wholesale revenue increased by 14% in Q3, supported by elevated brand positioning and healthier demand for the year-round assortment [16][12] - Revenue from other channels was CAD 15 million, roughly flat compared to CAD 14 million a year ago [16] Market Data and Key Metrics Changes - In North America, revenue grew by 20%, with comparable sales increasing in the high single digits [17] - Asia Pacific revenue increased by 12%, led by strong D2C performance and high single-digit comp growth, particularly in Mainland China [18] - EMEA revenue declined by 3% year-over-year, primarily due to lower tourist traffic in the UK, despite healthier trends in other European locations [18] Company Strategy and Development Direction - The company is focused on expanding product relevance and strengthening brand equity through strategic investments [4][6] - Marketing investments are aimed at building brand heat and driving higher quality traffic across retail and digital channels [8][9] - The company plans to continue optimizing its retail network and improve marketing efficiency to support margin expansion in fiscal 2027 [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to margin expansion and emphasized the importance of sustainable profitability as a top priority [6][14] - The company is taking decisive steps to realign its cost base and improve operational efficiency [23][24] - January performance remains strong, with expectations for continued momentum into the Lunar New Year shopping period [28] Other Important Information - The company has made progress in reducing corporate overhead costs and is embedding greater operating discipline across the organization [14][23] - Inventory management has improved, with inventory levels remaining flat year-over-year despite strong sales growth [23] Q&A Session Summary Question: DTC progress and traffic relative to conversion - Management noted that global store conversions have trended higher for four consecutive quarters, led by APAC and North America, with strong traffic driven by marketing investments [32][33] Question: Level of newness in stores and future plans - Management expressed satisfaction with the current assortment, highlighting that newness in lighter weight categories has outperformed heavyweight down products [40][41] Question: Contribution to operating margin and maintaining top-line momentum - Management discussed the importance of previous investments in marketing and store labor, which are expected to yield long-term benefits while maintaining top-line growth [55][56]

Financial Data and Key Metrics Changes - Revenue for Q3 increased by 13% year-over-year to CAD 695 million, driven by strong growth in both D2C and wholesale channels in North America and Asia Pacific [15][16] - Adjusted EBIT for Q3 was CAD 204 million, translating to an adjusted EBIT margin of 29.3%, which is 450 basis points lower than the previous year [20][21] - Adjusted net income attributable to shareholders was CAD 142 million, or CAD 1.43 per diluted share, compared to CAD 148 million or CAD 1.51 per diluted share last year [21] Business Line Data and Key Metrics Changes - Direct-to-consumer (D2C) revenue grew 13% in Q3, with comparable sales up 6%, marking the fourth consecutive quarter of positive comps [10][15] - Wholesale revenue increased by 14% in Q3, supported by elevated brand positioning and well-managed inventory levels [15][16] - Revenue from new product offerings doubled year-over-year, indicating strong consumer response to new styles and fabrications [6][39] Market Data and Key Metrics Changes - In North America, revenue grew by 20%, with comparable sales increasing in the high single digits [16] - In Asia Pacific, revenue increased by 12%, led by strong D2C performance, particularly in Mainland China [16][17] - EMEA revenue declined by 3% year-over-year, primarily due to lower tourist traffic in the UK, despite better performance in Continental Europe [17] Company Strategy and Development Direction - The company is focused on expanding product relevance and enhancing year-round offerings, which contributed to positive sales growth [4][6] - Marketing investments are aimed at building brand heat and driving traffic, with a focus on upper funnel investments to enhance visibility [8][9] - The company plans to optimize its retail network and continue opening new stores while reviewing its entire network for efficiency [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to margin expansion in fiscal 2027, emphasizing the importance of sustainable profitability [5][23] - The company is taking decisive steps to realign its cost base and improve operational efficiency, particularly in store labor management [23][24] - There is optimism regarding continued strong performance in January, with expectations for momentum to carry into the Lunar New Year shopping period [26] Other Important Information - Inventory levels remained flat year-over-year at CAD 409 million, reflecting strong demand and improved inventory management [22] - Net debt decreased to CAD 413 million from CAD 546 million in the previous year, indicating disciplined working capital management [22] Q&A Session Summary Question: DTC progress and traffic relative to conversion - Management noted that global store conversions have trended higher for four consecutive quarters, led by APAC and North America, with strong traffic driven by marketing investments [31][32] Question: Level of newness in stores and future assortment plans - The company is satisfied with the current assortment, emphasizing the importance of newness in driving consumer interest and maintaining a balance between core and new products [39][40] Question: Margin initiatives and future guidance - Management discussed the journey towards margin improvement, highlighting the need for continued focus on operational efficiency and the impact of previous investments on future growth [44][46]

Financial Data and Key Metrics Changes - Revenue for Q1 fiscal 2026 was CAD 108 million, up 22% year over year on a reported and constant currency basis [12] - Direct-to-consumer (D2C) comparable sales growth was 15%, marking seven consecutive months of positive comps [5][12] - Adjusted net loss attributable to shareholders was CAD 88 million or CAD 0.91 per share, compared to a loss of CAD 76 million or CAD 0.79 per share in the previous year [20] - Gross margin expanded by 170 basis points year over year to 61.4% [18] Business Line Data and Key Metrics Changes - D2C revenue increased to CAD 78 million, up 23%, reflecting the success of the broader D2C strategy [13] - Wholesale revenue achieved an 11% year-over-year increase, with stable performance expected following a channel reset [14] - Apparel was the fastest-growing category in Q1, with significant growth in core outerwear products as well [6] Market Data and Key Metrics Changes - North America revenue was up 27%, driven by strong D2C performance [15] - APAC revenue also increased by 27%, with strong D2C growth in Mainland China, although Japan showed softer trends [16] - EMEA revenue declined slightly year over year due to a planned decrease in wholesale revenue, with low single-digit negative D2C comparable sales growth in the UK [17] Company Strategy and Development Direction - The company is focused on expanding product offerings to enhance year-round relevance and has introduced more new products than ever before [6] - Strategic marketing investments are aimed at building brand momentum, with campaigns that challenge old perceptions and resonate with consumers [7][8] - The company is committed to sustainability, achieving a 9% reduction in Scope 1 emissions and a 25% reduction in Scope 3 emissions in fiscal 2025 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum built despite an uncertain environment, highlighting major growth opportunities [11] - The company is focused on operational excellence and deepening customer connections, with a strong liquidity position to navigate uncertainties [22][24] - Management acknowledged macroeconomic challenges but emphasized the importance of controlling internal factors to sustain growth [88][93] Other Important Information - Inventory was CAD 440 million, down 9%, marking the seventh consecutive quarter of year-over-year inventory declines [20][21] - The company ended the quarter with CAD 542 million of net debt, a significant improvement from CAD 766 million at the end of the previous fiscal year [22] Q&A Session Summary Question: Drivers of sequential acceleration in comp sales - Management attributed the acceleration to increased marketing investments, a more seasonally relevant product assortment, and improved execution in stores [27][29] Question: Year-on-year SG&A growth expectations - Management indicated that SG&A growth would continue to be driven by strategic investments in marketing and store labor, with a disciplined approach to discretionary spending [32][34] Question: Performance in China and APAC - Management expressed satisfaction with performance in China, attributing success to effective marketing and product availability, while noting softer trends in Japan [40][42] Question: Newness in product offerings - Management highlighted a significant increase in new product introductions, aiming to nearly double the amount of newness to enhance year-round relevance [43][45] Question: SG&A increase drivers - Management noted that the bulk of SG&A growth was due to investments in marketing, product creation, and store labor, while maintaining lean controllable expenses [80][82] Question: DTC performance sustainability - Management expressed confidence in the sustainability of DTC performance, citing strong execution and positive consumer engagement [90][91] Question: Wholesale business growth potential - Management acknowledged the potential for wholesale growth but emphasized a cautious approach, focusing on stability and long-term relationships with strategic partners [96][99]