Canada Goose NYSE: GOOS said it ended fiscal 2026 with stronger sales momentum across its direct-to-consumer and wholesale businesses, while management outlined plans to expand profitability in fiscal 2027 despite a more cautious consumer backdrop.
On the company’s fourth-quarter earnings call, Chairman and CEO Dani Reiss described fiscal 2026 as “the year of focused execution” across product, brand and channel priorities. Revenue grew 12% for the full year and 18% in the fourth quarter, while direct-to-consumer comparable sales increased 8% for the year and 10% in Q4. Reiss said the fourth quarter marked Canada Goose’s fifth consecutive quarter of positive comparable sales growth, driven by stronger conversion and broader customer engagement.
“Fiscal 2026 marked a step change for Canada Goose, and I am very pleased with how the year has played out,” Reiss said. “We delivered against our objectives and built real momentum across the business.”
Revenue Tops CAD 1.5 Billion for the Year
Chief Financial Officer Neil Bowden said fourth-quarter revenue rose 18% year over year to CAD 453 million, with growth across all channels and regions. Full-year revenue reached CAD 1.5 billion for the first time, up 12%.
In direct-to-consumer, fourth-quarter revenue increased 16% year over year, with comparable sales up 10%. Bowden said growth was led by e-commerce and complemented by store performance. Demand benefited from the continued performance of the Fall/Winter 2025 collection and an early response to the Spring/Summer 2026 assortment.
Wholesale revenue increased 52% in the fourth quarter and 9% for the full year. Bowden said the improvement reflected the benefits of a reset toward “brand-aligned partners” and healthier inventory positions. The company said Q4 wholesale growth was led by EMEA and Asia Pacific, supported by shipments tied to the Spring/Summer 2026 order book and in-season demand for Fall/Winter 2025 products.
Reiss said the wholesale reset that began three years ago is now complete. He said the channel has returned to growth due to better product flow, healthier inventory and stronger sell-through, including encouraging reorders for the Fall/Winter 2025 assortment.
Apparel and Spring Products Drive Year-Round Strategy
Executives emphasized Canada Goose’s push to broaden its relevance beyond peak winter selling periods. Reiss said the company launched its largest spring/summer assortment to date for the season and brought it to market earlier than in prior years, improving visibility for the collection during the shoulder season.
“Customers are responding,” Reiss said. “Apparel led growth in Q4 and for the year, while down-filled outerwear remained the majority of our revenue and meaningful contributor to growth.”
During the question-and-answer session, Reiss said Canada Goose has invested significantly in its product creation and development capabilities over the past two years. He said the company is now better positioned to create desirable products “at the right margin and at the right price point.”
Carrie Baker, President of Brand and Commercial, said the newer product assortment has changed the feel of the company’s stores and online presentation, adding more color and energy. She said Spring/Summer 2026 was the first mainline collection overseen by Haider Ackermann and that the newness gave the brand “more stories to connect with our consumer with.”
Regional Results Show Strength in Asia Pacific and EMEA
Bowden said North America revenue increased 11% in the fourth quarter, supported by D2C growth. Comparable sales in the region declined 1%, as improved conversion was offset by store traffic pressure concentrated in a small number of high-volume, high-tourism urban locations.
Asia Pacific revenue rose 23% year over year, driven by both D2C and wholesale. Comparable sales grew double digits, led by Mainland China. Bowden cited strong traffic, improved store and online conversion, and a positive response to the company’s Lunar New Year product capsule and related marketing campaign. Wholesale growth in the region was primarily driven by travel retail demand.
In EMEA, revenue increased 25%, driven by wholesale growth and continued strength in D2C. Comparable sales in D2C grew double digits, led by e-commerce. Bowden said store performance grew in most markets, though the U.K. remained soft amid uneven traffic trends. He also noted some softening toward the end of the quarter tied to a more cautious consumer environment and geopolitical tensions, particularly affecting inbound travel-related spending and discretionary demand.
Margins Pressured in Q4, but Management Points to 2027 Expansion
Fourth-quarter gross profit increased 15% year over year, while gross margin declined 170 basis points to 69.6%. Bowden attributed the margin decline to a higher proportion of wholesale revenue, higher freight and duty costs related to regional sales mix, and the company’s push into more year-round product newness.
Total SG&A expenses increased 14% to CAD 251 million in the fourth quarter, below the 18% revenue growth rate. Bowden said the company delivered about 50 basis points of operating leverage when adjusting for the prior-year earn-out expense excluded from adjusted EBIT. Canada Goose recorded an CAD 8 million impairment charge in the quarter related to select underperforming store locations.
Adjusted EBIT increased CAD 5 million year over year to CAD 65 million in the fourth quarter, while adjusted EBIT margin declined 120 basis points to 14.3%. Inventory was CAD 386 million, relatively flat year over year, while inventory turns improved to 1.2 times. Net debt declined to CAD 383 million from CAD 409 million a year earlier, and net debt leverage remained flat at 1.3 times EBITDA.
For fiscal 2027, Canada Goose expects total revenue to grow in the low single digits. Bowden said growth is expected to be led by D2C across stores and e-commerce, with wholesale also contributing. The company expects lower “other revenue,” reflecting healthier inventory in its channels and fewer planned friends-and-family events.
The company projected adjusted EBIT margin of 11% to 12% for fiscal 2027, representing 130 to 230 basis points of expansion year over year. Bowden said improvement is expected from gross margin and SG&A, including favorable channel mix, pricing actions implemented in April, manufacturing and operational efficiencies, more efficient marketing and tighter corporate cost control.
Executives Cite Macro Caution, Cost Discipline
In response to a question from Raymond James analyst Rick Patel, Bowden said the company entered fiscal 2027 with several controllable growth drivers, including pricing, its wholesale order book, new stores and D2C execution. However, he said management is taking a broader cautious view because the macro environment appears more challenging than a year ago.
Beth Clymer, President and Chief Operating Officer, said Canada Goose expects SG&A growth to remain below revenue growth in fiscal 2027. She pointed to opportunities to improve store labor productivity, use marketing more efficiently and maintain discipline in controllable overhead costs.
Baker said marketing as a percentage of sales will be lower in fiscal 2027, but the company is not changing its strategy. She said some prior investments, such as reshooting parts of the company’s catalog to reflect its evolved brand presentation, do not need to repeat. The focus now is on measuring return on marketing spend more rigorously.
Bowden said approximately three-quarters of Canada Goose’s revenue has historically been generated in the second half of the fiscal year, while much of its fixed cost base is incurred more evenly. As a result, he said the company expects modest margin pressure in the first half of fiscal 2027 followed by margin expansion in the second half as revenue scales into the peak selling season.
About Canada Goose NYSE: GOOS
Canada Goose Holdings Inc, traded on the NYSE under the symbol GOOS, is a Canadian design and manufacturing company specializing in premium outerwear. The firm is best known for its down-filled jackets and parkas, engineered to deliver high performance in extreme cold weather. Over time, Canada Goose has expanded its product range to include knitwear, fleece, footwear, and accessories, all designed with an emphasis on technical innovation, quality craftsmanship, and functional style.
Founded in 1957 as Metro Sportswear Ltd.
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