{"id":149852,"date":"2026-07-30T17:30:15","date_gmt":"2026-07-30T17:30:15","guid":{"rendered":"https:\/\/www.europesays.com\/canada\/149852\/"},"modified":"2026-07-30T17:30:15","modified_gmt":"2026-07-30T17:30:15","slug":"canada-goose-narrows-q1-loss-amid-revenue-gains","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/canada\/149852\/","title":{"rendered":"Canada Goose Narrows Q1 Loss Amid Revenue Gains"},"content":{"rendered":"

\n\tCanada Goose<\/a> increased revenues and reduced losses last quarter, a sign the company\u2019s multiyear drive to widen its luxury assortment and tighten cost controls is working.<\/p>\n

\n\tFor the first quarter ended June 28, total revenue\u00a0increased 10.3 percent to $118.9 million from $107.8 million, up 8.6 percent on a constant currency basis. All figures are expressed in Canadian dollars, except for per share prices, which are in U.S. dollars.<\/p>\n

\n\tThe operating loss\u00a0narrowed to $103.8 million compared with $158.7 million in the prior-year period, which executives attributed to higher gross profit and lower expenses across the board.<\/p>\n

\n\tThe net loss\u00a0was $90.8 million, or 93 cents a share, compared with $125.2 million, or $1.29 per share, a year ago.<\/p>\n

\n\tAdjusted earnings before interest and taxes\u00a0tallied $103.8 million, down slightly from $106.4 million a year earlier.<\/p>\n

\n\tGross margin was 62.4 percent compared with 61.4 percent in the year-ago period, reflecting favorable channel mix and region mix. <\/p>\n

\n\t\u201cI feel really good about the first quarter,\u201d Dani Reiss, chairman and chief executive officer of Canada Goose<\/a>, told WWD on Thursday. \u201cThe first quarter is the smallest of the year, but our initiatives are playing out really well. The top line was good and the margins came in strong as well.<\/p>\n

\n\t\u201cApparel, rainwear and windwear have started to see great traction more recently,\u201d Reiss said. \u201cThese categories represented nearly 40 percent of our revenues last quarter, as much as the entire company generated eight years ago in the quarter. Five years ago, those categories represented just 5 percent of the business. By last year, they had grown to 15 percent of annual revenue and they continue to expand. Diversity has been successful, and it\u2019s been without losing sight of who we are, our DNA, and growing the core,\u201d which is outerwear. Rainwear was introduced in 2015, knitwear in 2017, and windwear in 2020. Within apparel, fleece knitwear shirts and bottoms have been standouts.<\/p>\n

\n\tAsked if additional new products or categories were being tested, Reiss said, \u201cWe do have some new categories in the works that aren\u2019t on the shelves yet. You\u2019ll have to wait until fall to see some new stuff.\u201d<\/p>\n

\t\t\t\t\t\t\"\"<\/p>\n

\t\t\t\t\tDani Reiss<\/p>\n

\n\tWhile the quarter performance was generally good, \u201cStore traffic in North America was not where we liked it, but that\u2019s not an indicator of brand health,\u201d Reiss said. \u201cConversion in stores has increased. The execution in the stores is much better and products are resonating better.\u201d The decline in\u00a0store traffic, he said, was due to macroeconomic conditions.<\/p>\n

\n\tDirect-to-consumer revenue\u00a0increased 8.6 percent to $84.8 million,\u00a0due to a stronger performance in Asia-Pacific and North America. DTC comparable sales declined\u00a03.2 percent primarily reflecting softer comparable-store sales, partially offset by double-digit e-commerce growth.<\/p>\n

\n\tWholesaling was among the bright spots last year, as revenue\u00a0increased 66.5 percent to $29.8 million, driven by strong orders and reorders, Reiss said. \u201cSpring 2027 orders coming in now are very strong.\u201d<\/p>\n

\n\tHe cited Nordstrom, Bloomingdale\u2019s, Holt Renfrew and Harry Rosen as among the top accounts.<\/p>\n

\n\tThe Toronto-based company projects full-year revenue up low-single digits and adjusted EBIT margin\u00a0in the range of 11 to 12 percent.<\/p>\n

\n\tReiss said the company is carefully monitoring the tariff situation, but does not expect to see a material impact from U.S. duties announced July 20 and scheduled to take effect Aug. 19. Prices on some Canada Goose products will be affected and if the duties are implemented as proposed, and assuming no mitigating actions were taken, Canada Goose estimates that the impact to this year\u2019s operating margin would be less than 200 basis points.<\/p>\n

\n\tCanada Goose opened four stores during the quarter, bringing the store count to 92. This included a new Vancouver location, which showcases the brand\u2019s latest design.<\/p>\n

\n\tIn other statistics, inventory rose 11 percent from a year earlier to $489.9 million at the end of the quarter, reflecting an expanded product assortment, a larger wholesale order book, and planned production growth to support anticipated demand for fall\u00a0\u201826. SG&A expense decreased 21 percent year-over-year.<\/p>\n

\n\tDuring a conference call with industry analysts and investors, Reiss said, \u201cWe delivered revenue growth of 9 percent driven by strong demand for our expanding lifestyle product offering, including apparel, rainwear and windwear. We also achieved healthy gross margin expansion in the season with a greater mix of spring-summer categories, while higher channel margins and disciplined cost management further supported profitability. Together, these results demonstrate that the strategic investments we have made over the past several years are translating into stronger financial<\/a> performance, as planned.\u201d<\/p>\n

\n\tThe CEO cited three priorities for this fiscal year: to deepen brand desire through more effective marketing and translate that into increased demand, scale a repeatable product playbook across seasons and drive greater year-round relevance, and improve channel productivity and capital efficiency.<\/p>\n

\n\tThe brand\u2019s bottom-line loss of 64 cents a share was a bit more than the Zacks Consensus Estimate of 63 cents, but the quarter\u2019s revenues of $85.9 million surpassed the Zacks Consensus Estimate. By late morning Thursday, Canada Goose\u2019s stock price was up 0.8 percent to $9.32.<\/p>\n

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