Canada Goose (NYSE:GOOS) reported higher fiscal second-quarter revenue but a wider adjusted loss, as weaker store traffic weighed on comparable sales ahead of the outerwear company’s peak selling season.
Revenue rose 5% to CAD 274 million in the quarter ended Sept. 27, 2026, with growth across all channels. Direct-to-consumer comparable sales fell 7.5%, however, as lower store traffic across regions outweighed gains in conversion and e-commerce, Chief Financial Officer Neil Bowden said.
The company maintained its full-year outlook for low-single-digit revenue growth and an adjusted EBIT margin of 11% to 12%. Bowden said comparable sales remained negative in October, with warmer weather delaying seasonal purchases.
All amounts discussed on the call were in Canadian dollars unless otherwise noted, and percentage changes were stated in constant currency unless otherwise specified. Results reflect continuing operations and exclude Baffin Limited, which Canada Goose sold in August; prior periods were reclassified accordingly.
Traffic Pressures Persist Despite Conversion Gains
Direct-to-consumer revenue rose 1% to CAD 130 million, supported by new stores and e-commerce growth. Bowden said online comparable sales were positive, led by North America and Asia Pacific.
Chairman and CEO Dani Reiss said store conversion, average revenue per unit and units per transaction improved, even as traffic softened. The company is focusing on local marketing, customer outreach and product availability to bring more shoppers into stores.
“Our priorities for the second half of the year are straightforward: build on stronger conversion, drive more traffic, and return to positive comparable sales growth while sustaining our focus on profitability,” Reiss said.
Asia Pacific revenue increased 21%, though regional direct-to-consumer comparable sales declined 4%, primarily because of lower traffic, particularly in mainland China. North American revenue rose 8%, while comparable sales fell 4%; comparable sales in Canada were flat.
Europe, the Middle East and Africa was the weakest region, with revenue down 14% and comparable sales down 27%. Bowden cited softer local and tourist demand and delays associated with a new logistics network. Some wholesale deliveries shifted into the third quarter, and product availability was affected in both EMEA and Asia Pacific. He said the network was approaching normal operating capabilities.
Wholesale Growth and Wider Assortment
Wholesale revenue increased 5% to CAD 128 million in the quarter and rose 13% in the first half. Bowden said sell-through had improved and partners were buying more broadly across the company’s lifestyle assortment.
Reiss said apparel, wind and rainwear performed well during the quarter, while core cold-weather outerwear also grew. In the question-and-answer session, he said non-down and non-core products were growing faster than core products.
The spring/summer 2027 wholesale order book grew significantly from the prior year, according to management. Bowden said the company expects to ship those orders in its upcoming fourth and first quarters.
Margins Improve as Quarterly Loss Widens
Gross margin expanded 280 basis points to 66.8%, helped by product mix, pricing, sourcing and production efficiencies, and favorable freight and duty costs. President and Chief Operating Officer Beth Clymer said the company views the improvement as largely structural and expects the drivers to continue in the second half and beyond.
Higher expenses nevertheless contributed to a wider quarterly loss. Adjusted EBIT was a loss of CAD 22 million, compared with a loss of CAD 14 million a year earlier. The adjusted net loss attributable to shareholders widened to CAD 19 million, or CAD 0.20 per share, from CAD 13 million, or CAD 0.14 per share.
Bowden said the quarterly decline in adjusted EBIT margin was planned and largely reflected the timing of investments. For the first half, revenue rose 6% and adjusted EBIT margin expanded 170 basis points.
The company now expects U.S. tariffs implemented in August to have a 100-basis-point impact for the full year, compared with its earlier estimate of less than 200 basis points. Bowden said management expects positive comparable sales over the second half, while wholesale and other factors provide room to support the outlook if that improvement does not materialize.
About Canada Goose (NYSE:GOOS)
Canada Goose Holdings Inc designs, manufactures, and sells luxury apparel and accessories focused on cold-weather performance. Its product range includes parkas, jackets, vests, knitwear, footwear, gloves, hats, and other seasonal apparel for women, men, and children.
The company traces its origins to 1957, when Metro Sportswear was established in Toronto. It later adopted the Canada Goose name and built its reputation around insulated outerwear designed for harsh climates, combining technical materials and construction with premium fashion positioning.
Canada Goose sells its products through company-operated retail stores, e-commerce platforms, and select wholesale partners.
