On Wednesday, shares of Canada Goose surged approximately 20% following the company’s announcement of fiscal fourth-quarter earnings that exceeded analysts’ expectations. However, the retailer did not provide a financial outlook for fiscal year 2026, citing “macroeconomic uncertainty.”
The luxury apparel brand attributed its decision to withhold the fiscal outlook to evolving consumer spending behaviors driven by an unstable global trade landscape. As a result, the company identified “dynamic consumer spending patterns” as a significant factor influencing its future financial predictions.
Despite this uncertainty, Canada Goose expressed confidence in its brand strength, solid financial footing, and resilience to adapt to shifting market conditions.
In their latest earnings report, Canada Goose revealed the following figures for the fiscal fourth quarter, benchmarked against analyst expectations from LSEG surveys:
- Earnings per share: 33 Canadian cents adjusted versus an anticipated 23 Canadian cents
- Revenue: CA$384.6 million (US$277.1 million), exceeding the expected CA$356.4 million (US$256.8 million)
During a call with investors, COO Beth Clymer highlighted that 75% of the company’s products are manufactured in Canada and comply with the United States-Mexico-Canada Agreement, thus exempting them from President Donald Trump’s tariffs. Production from Europe, while facing potential tariff increases, is expected to have “minimal financial impact,” according to Clymer.
Adding to this perspective, CEO Dani Reiss noted that “the vast majority” of Canada Goose’s product offerings remain unaffected by tariffs.
Reiss emphasized that the company has successfully navigated previous periods of uncertainty. “We’ve endured challenging times before, through 2008 and through COVID, and each time we’ve emerged stronger,” he stated.
CFO Neil Bowden commented that while tariffs do not significantly affect fiscal year 2026 financial plans, the “indirect consequences of these actions on the global economy” create additional uncertainty as the company approaches its peak revenue periods.
Canada Goose reported a 7.4% increase in revenue compared to the same period last year.
For the fiscal fourth quarter ending on March 30, net income attributable to shareholders reached CA$27.1 million, or 28 Canadian cents per diluted share, a notable rise from the prior year’s CA$5 million, or 5 Canadian cents per diluted share.
As of the previous Monday’s market close, Canada Goose shares had declined nearly 14% year-to-date, reaching an all-time low last month after receiving a downgrade from Barclays analysts, who also lowered their price target for the stock.
The luxury market has shown signs of vulnerability, as major industry players such as LVMH, Burberry, and Kering reported declines in sales during the same quarter.
Canada Goose, known for its high-end parkas and puffer jackets often priced over $1,000, is also exploring expansion into non-winter categories, recently launching products like rain jackets and warm-weather apparel.
Additionally, the company introduced its eyewear collection in the fourth quarter, marking its first online product launch, incorporating artificial intelligence-powered virtual try-on features. This initiative is seen as a critical step in diversifying its product offerings and enhancing the brand’s relevance throughout the entire year.
