Canada Goose (GOOS) Q3 2025 earnings summary

Executive summary

• Q3 revenue was $607.9 million (CAD 608 million), flat year-over-year, as DTC growth offset planned wholesale declines; North America comp sales rose 22% in December.

• Gross margin improved by 70 basis points to 74.4%, driven by favorable pricing and lower inventory provisions.

• Brand momentum was fueled by the Snow Goose capsule launch, which set record media impressions and drove strong commercial results, with 25% of buyers also purchasing mainline products and two-thirds being returning customers.

• Operational improvements included better inventory management, labor optimization, and retail execution, resulting in improved store conversion rates and a fifth consecutive quarter of inventory reduction.

• Strategic marketing investments and product evolution, including lighter outerwear and eyewear, contributed to global brand momentum.

Financial highlights

• DTC revenue rose to $517.8 million (up 1% year-over-year), but comparable DTC sales declined 6%; wholesale revenue fell 8% to $75.7 million.

• Adjusted EBIT was $205.2 million (33.8% margin), slightly down from $207.2 million (34% margin) last year.

• Adjusted net income attributable to shareholders was $148.3 million or $1.51 per diluted share, up from $138.6 million or $1.37 per share.

• Inventory decreased 15% year-over-year to $407.4 million, and net debt was reduced to $546.4 million, with net debt leverage down to 1.9x Adjusted EBITDA.

• SG&A as a percentage of sales was 40.7%, down 40 bps year-over-year, and cash increased to $285.2 million.

Outlook and guidance

• Full-year revenue guidance maintained: range between a low single-digit increase to a low single-digit decline versus fiscal 2024.

• DTC comparable sales outlook revised to flat growth to a mid-single-digit decrease; wholesale revenue expected to decline ~20% year-over-year.

• Adjusted EBIT margin now expected to range from flat to down 100 basis points year-over-year.

• Adjusted net income per diluted share expected to be flat to a low single-digit increase.

• Retail expansion plans unchanged, with two new stores and three new concession shops planned.