Canada Goose says diversification efforts working but Q3 profit fell from year ago

A Canada Goose logo on a storefront in Ottawa on Saturday Sept. 10, 2022. THE CANADIAN PRESS/Sean Kilpatrick

TORONTO — Canada Goose Holdings Inc. says its efforts to convince customers to turn to the company for more than a down-filled parka as winter hits are paying off — but investors may not be convinced.

While customer demand for the retailer’s star product — down-filled outwear — remained strong in its most recent quarter, Canada Goose said Thursday that its non-down-filled outwear grew even faster and was accompanied by gains in lightweight and year-round apparel.

“That shift is intentional,” said Carrie Baker, Canada Goose’s president of brand and commercial, on a call with analysts.

“We want to be able to bring newness to the floor. We want to be able to drive repeat visitors, bring people back to see something new.”

On the heels of her remarks and Canada Goose revealing its latest quarter had a smaller profit than last year, the company’s stock slid in mid-morning trading by $3.60 or nearly 20 per cent to $14.50 on the Toronto Stock Exchange.

Canada Goose started out in the 1950s selling heavy and durable snowmobile suits and woollen vests, but became a household name in the 2000s when its parkas became a luxury status symbol.

To keep building sales and ensure people have a reason to return even after they’ve bought a winter jacket, the Toronto-based company has spent recent years working to remind customers about the breadth of its offerings.

The company sells rainwear, lightweight jackets, tops and bottoms as well as shoes, socks, hats, scarves and sunglasses. CEO Dani Reiss has also mused about eventually getting into the luggage market.

While the company is pleased all of its major categories are growing and showing signs of resonating with customers, Baker indicated the company isn’t planning to run wild.

“We are watching it carefully. Obviously, we don’t want to get over SKU-ed,” she said, referencing the unique codes companies assign each product.

“We don’t want to have too big an assortment for the size of our stores, but right now that we we’re feeling very comfortable about our mix.”

Lately, that mix has been focused on introducing newness to the brand. Newness is a term retailers use to describe how fresh their products seem and is largely dependent on the styles, silhouettes, fabrics and embellishments merchandise has.

At Canada Goose, newness isn’t always achieved by introducing a ton of new styles, Baker said. Sometimes it comes from revamping bestsellers like the Chilliwack, a bomber coat Canada Goose designed in the 1980s for bush pilots working on Arctic runways.

“Now they get it in a new fabric. Now they get it in a new puffer version and that is working,” Baker said.

The company’s third-quarter revenue linked to newness doubled year over year, while its overall revenue ticked up 14.2 per cent to $694.5 million, up from $607.9 million.

However, the company revealed the quarter, which is usually the highlight of its fiscal year, brought a drop in profit attributable to shareholders.

The metric amounted to $134.8 million or $1.36 per diluted share for the period ended Dec. 28, down from $139.7 million or $1.42 per diluted share a year earlier.

Direct-to-consumer revenue totalled $591.0 million for the quarter, up from $517.8 million, while wholesale revenue amounted to $88.3 million, up from $75.7 million. Other revenue totalled $15.2 million, up from $14.4 million a year earlier.

On an adjusted basis, Canada Goose says it earned $1.43 per diluted share in its latest quarter, down from an adjusted profit of $1.51 per diluted share a year earlier.

Analysts on average had expected an adjusted profit of $1.66 per share and revenue of $658.5 million for the quarter, according to data compiled by LSEG Data & Analytics.

“The miss is despite one of the best winters ever,” BNP Paribas equity research senior analyst Laurent Vasilescu said in a note to investors.

This report by The Canadian Press was first published Feb. 5, 2026.

Tara Deschamps, The Canadian Press