Canada Goose's Q3 2025: Navigating Contradictions in Marketing, Wholesale Strategy, and China Dynamics

These are the key contradictions discussed in Canada Goose's latest 2025Q3 earnings call, specifically including: Marketing Spend and Timing, Wholesale Strategy and Partnerships, Wholesale Revenue Stability and Strategy, China Market Dynamics, Revenue Growth Expectations, and The Impact of Marketing Spend:



Revenue and Sales Channel Performance:
- Canada Goose reported revenue of $608 million for Q3 2025, slightly below last year's $610 million.
- This reflects a 6% decline in DTC comparable sales, offset by a planned reduction in wholesale order volume.
- The decline in DTC sales was partially due to a quieter marketing strategy in October and November, while wholesale revenue was down 8%, aligning with their strategy to reduce order volume.

Marketing Initiatives and Consumer Response:
- The company's marketing initiatives showed strong results, with the Snow Goose campaign achieving over 30 billion impressions, representing the highest launch in recent history.
- The campaign led to a 22% comp sales growth in North America in December and the company is seeing positive comps in January.
- This success was attributed to strategic marketing investments and strong execution across all regions.

Inventory Management and Financial Health:
- Canada Goose reported a 15% year-over-year decrease in inventory, marking the fifth consecutive quarter of reduction.
- The company's inventory turns increased by 16% versus last year, driven by temporary reductions in production levels and improvements in planning and operations processes.
- This progress in inventory management contributed to strong cash generation and a net debt leverage of 1.9 times adjusted EBITDA, down from 2.1 times a year ago.

Product and Brand Evolution:
- The launch of the Snow Goose capsule collection under creative director Haider Ackermann was a significant brand moment, with 25% of buyers also purchasing mainline products.
- The expansion into eyewear and strategic investments in brand leadership, such as Judit Bankus's appointment, are part of a broader product evolution strategy.
- These initiatives are aimed at enhancing brand relevance beyond extreme cold weather moments and expanding into new markets.