Canada Goose's 2026 Q1 Earnings Call: Unpacking Contradictions in DTC Momentum, Snow Goose Strategy, and Marketing Investments

DTC momentum and sustainability, purpose and strategy of Snow Goose collection, marketing investments and SG&A growth are the key contradictions discussed in Canada Goose's latest 2026Q1 earnings call.



Revenue Growth and DTC Performance:
- Canada Goose reported revenue of $108 million for Q1 FY2026, up 22% year-over-year.
- The growth was driven by a 15% increase in DTC (Direct-to-Consumer) sales, with strong performance in North America and Mainland China.
- This was attributed to a focus on product innovation, strategic marketing investments, and improved operations across channels.

Marketing and Product Strategy:
- The company expanded its product offering with more newness than ever before, with notable items like the Emerson T-shirt and Beckley Polo.
- Marketing efforts such as the Spring-Summer campaign and Snow Goose capsule collections aimed to enhance brand heat and relevance.
- These initiatives were designed to challenge old perceptions and tap into new customer segments, driving positive consumer engagement and sales.

Operational Efficiency and SG&A:
- Gross profit margin expanded by 170 basis points to 61.4%, supported by margin improvement from the European manufacturing facility.
- SG&A expenses increased by 50% year-over-year, including a $44 million arbitration award and higher earn-out costs.
- Despite higher expenses, SG&A as a percentage of revenue improved by 850 basis points, indicating disciplined spending and focus on revenue-driving investments.

Geographic Performance Trends:
- North America saw a 27% revenue increase, led by strong DTC channel performance, with double-digit comp sales growth in stores.
- APAC revenue grew by 27%, with Mainland China driving growth through DTC sales, despite softer trends in Japan.
- EMEA revenue decreased slightly due to a planned decline in wholesale revenue, though DTC revenue showed low single-digit negative growth.