Canada Goose Stock Soars 30% on Strong Sales, Profits

Canada Goose Holdings Inc., the luxury down jacket manufacturer based in Toronto, experienced a significant surge in its stock price, rising nearly 30% on Wednesday. This substantial increase was driven by the company's impressive quarterly sales growth and rising net profits. Despite this strong performance, the company chose not to provide financial guidance for the current fiscal year, citing the unpredictable global trade environment and dynamic consumer spending patterns.

Chief Executive Officer Dani Reiss acknowledged the robust current business but expressed concern over the potential impact of the U.S.-led global trade war on demand. During the earnings call, Reiss explained that the decision to withhold the annual outlook was based on the highly uncertain global consumer environment. "We are in a period of great uncertainty," he said, emphasizing the need for caution in the face of macroeconomic uncertainties.

Reiss also noted that the current tariff environment would not have a direct and substantial impact on the company's plans for 2026. Chief Operating Officer Beth Clymer added that approximately 75% of the company's products are manufactured in Canada and nearly all comply with the United States-Mexico-Canada Agreement (USMCA), which means they are currently exempt from tariffs. The remaining production, primarily from Europe, faces increasing tariffs, but their financial impact is minimal.

The company reported net income attributable to shareholders of 27.1 million Canadian dollars for the three months ending March 30, a significant increase from the 5 million Canadian dollars reported in the fourth quarter of 2024. Revenue grew by 7.4% year-over-year, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 48.9% compared to the same period last year.