Canada Goose surprises with double-digit revenue growth in first quarter

Canadian apparel company Canada Goose Holdings Inc. achieved double-digit revenue growth in the first quarter of the 2026/27 financial year, exceeding market expectations primarily due to strong growth in China. The Toronto-based down jacket specialist's loss was significantly lower than in the same period last year, although analysts had anticipated a better result.

According to a statement released on Thursday, revenue for the first quarter, which ended on June 28, amounted to 118.9 million Canadian dollars. This represented an increase of 10.3 percent compared to the same period last year. Adjusted for currency fluctuations, revenue grew by 8.6 percent.

In its direct-to-consumer (D2C) channel, revenue grew by 8.6 percent (or +6.7 percent on a constant currency basis) to 84.8 million Canadian dollars, driven by increasing demand in the Asia-Pacific region and North America. The company's wholesale business saw an increase of 66.5 percent (or +65.4 percent on a constant currency basis) to 29.8 million Canadian dollars.

Strong growth in China drives revenue

Revenue in North America decreased by 4.9 percent (or -5.7 percent on a constant currency basis) to 48.8 million Canadian dollars. A 10.7 percent increase in Canada, reaching 27.0 million Canadian dollars, was insufficient to offset losses in the US, where revenue fell by 19.0 percent (or -20.4 percent on a constant currency basis) to 21.8 million Canadian dollars.

Revenue was also down in the EMEA region, which includes Europe, the Middle East, Africa and Latin America. It decreased by 5.7 percent (or -7.4 percent on a constant currency basis) to 16.5 million Canadian dollars.

Canada Goose experienced strong growth in the Asia-Pacific region. In Greater China, revenue increased by 44.2 percent (or +39.6 percent on a constant currency basis) to 37.5 million Canadian dollars. In the rest of the region's markets, it grew by 23.8 percent (or +24.6 percent on a constant currency basis) to 16.1 million Canadian dollars.

Company reduces its loss

Thanks to an increase in the gross margin from 61.4 to 62.4 percent and lower costs, the operating loss decreased to 103.8 million Canadian dollars from 158.7 million Canadian dollars in the prior-year quarter. However, the previous year's result was impacted by negative one-off factors.

The adjusted earnings before interest and taxes (EBIT) loss decreased from 106.4 to 103.8 million Canadian dollars. The net loss attributable to shareholders was 90.8 million Canadian dollars, compared to a loss of 125.2 million Canadian dollars in the first three months of the previous year.

Annual forecasts remain unchanged

Chairman and CEO Dani Reiss believes the company remains on the right track. “Our first quarter is further proof that our strategy is working,” he explained in a statement. “We are successfully developing Canada Goose into a year-round luxury brand.” The company is now increasingly reaching customers across different seasons and product categories, Reiss added.

The recent performance gave management no reason to change the existing forecasts. For the current financial year, the company continues to expect low single-digit percentage revenue growth and an adjusted EBIT margin of between eleven and twelve percent.