Luxury parka maker Canada Goose beats third-quarter revenue estimates

A Canada Goose Clothing Company logo is purchase on a storefront in Ottawa. (Sean Kilpatrick / THE CANADIAN PRESS)

Luxury apparel maker Canada Goose beat Wall Street estimates for third-quarter revenue on Thursday, helped by resilient demand among younger shoppers for its new launches amid heavier marketing spending.

Canada Goose has been ramping up its marketing outlays and expanding its assortment beyond its core high-margin parkas to reach a wider customer base at a time when consumers are pulling back on discretionary spending.

Strong holiday demand for affordable luxury echoed across the sector. U.S.-based Tapestry’s Coach brand also saw another quarterly beat.

The company increased spending on its new Fall/Winter 2025 marketing pushes aimed at broadening its lineup. The company had launched nylon shorts, ultra-light rain jackets, airy cotton parkas for its Spring–Summer 2025 campaign.

However, increased marketing spend weighed on gross margins, which fell to 74.0% from 74.4 per cent.

“Margins this quarter reflected deliberate choices we made to expand product relevance and fuel brand momentum... These actions will position us to expand margins in the years ahead,” CEO Dani Reiss said.

It reported adjusted earnings per share of C$1.43, compared with estimates of C$1.66.

The company reported quarterly revenue of C$694.5 million ($507.54 million), compared with the estimates of C$658.5 million, according to data compiled by LSEG.

(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Leroy Leo)