Canada Goose exec says consumer environment remains mixed in early weeks of Q2 - conf call

Canada Goose Holdings Inc. reported mixed performance in the early weeks of its second quarter of fiscal 2026, according to remarks from CEO Dani Reiss during a recent conference call. While the company highlighted strong direct-to-consumer (DTC) execution and positive comparable sales growth, Reiss noted that the broader consumer environment remained uneven, with regional and product-specific variations in demand.

The company’s DTC revenue increased by 21.8% year-over-year to $126.6 million, driven by a 10.2% rise in DTC comparable sales and the opening of new stores. This segment accounted for a growing share of total revenue, reflecting shift toward direct sales channels. However, wholesale revenue declined by 1.0% to $135.9 million, aligning with prior year period expectations.

Gross profit rose 3.7% to $170.1 million, with a gross margin of 62.4%, up from 61.3% in the same period of fiscal 2025. This improvement was attributed to a higher proportion of DTC sales, although it was partially offset by increased product costs and shifts in product mix.

Operating loss for the quarter was $17.6 million, compared to an operating income of $1.6 million in the prior year period. Net loss attributable to shareholders was $15.2 million, or $0.16 per share, compared to net income of $5.4 million, or $0.06 per share, in the previous year.

Reiss emphasized that the company is investing in key areas such as product innovation, brand partnerships, and store expansion, particularly in high-growth markets like Asia Pacific. The company also announced a new normal course issuer bid (NCIB) to repurchase up to 10% of its public float, signaling confidence in its capital allocation strategy.

Despite the mixed consumer environment, Canada Goose remains focused on executing its long-term strategy, with plans to continue refining its product offerings and enhancing customer experiences ahead of peak season.