Canada Goose Holdings Inc.

First-quarter revenue was $119 million, up 9% year over year in constant currency. Gross margin expanded 100 basis points to 62.4%, adjusted EBIT loss was $104 million versus $106 million last year, and adjusted EBIT margin improved to -87% from -99%. Adjusted net loss attributable to shareholders was $87 million, or $0.89 per share, versus $88 million, or $0.91 per share, last year. DTC revenue increased 7%, wholesale revenue increased 65%, and DTC comparable sales declined 3%. For the balance of the year, management said it remains on track to deliver fiscal 2027 guidance and reiterated a full-year margin expansion target of 11% to 12%; first-half margins are expected to be modestly pressured by higher marketing, logistics network upgrades, and e-commerce investments, and tariff assumptions remain unchanged from fiscal 2026.

Dani Reiss framed the quarter as proof that Canada Goose’s multi-year strategy is working: the brand is broadening beyond core outerwear, building year-round relevance, and improving profitability. He emphasized strong demand for the largest spring/summer collection in company history, with apparel, rainwear, and windwear helping drive growth without cannibalizing down-filled outerwear. His tone was confident but measured, repeatedly pointing to stronger brand desirability, better retail execution, and more diversified growth across channels and seasons.

Neil Bowden focused on the financial mechanics behind the quarter: $119 million of revenue, 62.4% gross margin, a 100-basis-point gross margin gain, and adjusted EBIT margin improvement to -87%. He said SG&A fell 21% year over year, though normalized SG&A would have been up 6%, and noted marketing spend as a percentage of revenue declined 490 basis points because of deliberate pacing and better efficiency. Inventory was $490 million, up 11%, inventory turns were 1x sales, and net debt was $628 million; he also said the company repriced its term loan for a 50-basis-point reduction in credit spread. He added that higher marketing, logistics, and e-commerce spending will ramp in Q2, modestly pressuring first-half margins, and said any implemented U.S. duties could reduce fiscal 2027 operating margin by less than 200 basis points before mitigation.

Analysts pressed management on weak store traffic, especially in the U.S. and EMEA, and asked how Canada Goose plans to close the gap versus strong e-commerce and conversion. Management said this is primarily a traffic problem, not a demand problem: customer acquisition is healthy, conversion is improving, and the company plans to lean into clienteling and higher marketing spend in Q2 and Q3. On wholesale, management said less than half of the 65% growth was timing-related, with the rest driven by a stronger order book and in-season reorders. Questions also covered pricing, where management said the effective increase was about mid-single-digit and that they are not seeing price resistance, and AI, where the company said it is testing uses in customer service, product development, analytics, and operational efficiency.