Canada Goose Holdings Inc reported a robust 14.2 per cent increase in total revenue to $694.5 million for Q3, FY26 ended December 28, 2025. This top-line expansion was spearheaded by a 20 per cent growth in North American sales and a 12 per cent gain in the Asia-Pacific region, largely driven by the reopening of high-traffic luxury hubs in Mainland China. The company’s direct-to-consumer (DTC) channel, now representing nearly 85 per cent of total sales, saw a 14.1 per cent rise to $591 million. This momentum marks the fourth consecutive quarter of positive DTC comparable sales growth, signaling that the brand's shift toward high-touch retail environments and a year-round ‘lifestyle’ assortment is successfully insulating it from broader luxury sector stagnation.

Profitability pressures and operational realignments

Despite the revenue beat, net income attributable to shareholders softened to $134.8 million, down from $139.7 million in the prior-year period. Profitability was dampened by a significant 450-basis-point contraction in adjusted EBIT margin, which settled at 29.3 per cent. Management attributed this squeeze to a one-time $15 million bad-debt provision involving a US wholesale partner and elevated marketing investments for the ‘Snow Goose’ campaign by Haider Ackermann. To combat these rising operational costs, Neil Bowden, CFO announced an immediate optimization program focused on refining store labor models and tightening discretionary corporate spending, aiming for a structural margin recovery in fiscal 2027.

Diversification beyond the heavy parka

The quarter’s results underscored a significant evolution in the product mix, with non-down-filled outerwear and lightweight apparel growing at double the rate of the traditional heavy parka category. The success of the ‘New Heirlooms’ collection reflects a strategic move to capture ‘shoulder season’ demand, reducing the brand's historical reliance on extreme cold-weather events. While inventory remained lean at $408.7 million, the company improved its inventory turnover by 16 per cent Y-o-Y. This disciplined supply chain management, coupled with a sharp reduction in net debt to $413 million, provides Canada Goose with the liquidity required to continue its global store expansion, having reached a permanent count of 81 locations this quarter.

AToronto-based luxury performance brand, Canada Goose specializes in high-end outerwear, knitwear, and accessories. Originally founded in 1957, the company is currently expanding its year-round lifestyle presence across 81 permanent global stores. It maintains a debt-reduced balance sheet while prioritizing direct-to-consumer growth and premium product diversification.