Canada Goose Q3 Revenue Up 14.2% to C$694.5m, EPS Falls to C$1.36
Canada Goose’s Q3 fiscal 2026 revenue rose 14.2% to C$694.5m, with DTC sales up 14.1% to C$591.0m and gross margin at 74.0% (vs 74.4%). Higher SG&A of C$313.6m, driven by a one-time U.S. bad-debt charge and increased marketing, cut net income to C$134.8m (C$1.36/share) and reduced net debt to C$413.0m.
1. Quarterly Earnings Fall Short of Analyst Expectations
Canada Goose reported adjusted earnings per share of $1.03 for the third quarter of fiscal 2026, below the Zacks Consensus Estimate of $1.14 and down from $1.10 in the same period a year earlier. The shortfall reflects heavier marketing investments and a one-time bad-debt provision related to a U.S. wholesale partner, which more than offset growth in its peak holiday period revenue.
2. Top-Line Growth and Margin Dynamics
Total revenue rose 14.2% year-over-year to CAD 694.5 million (13.2% on a constant-currency basis), driven by a 14.1% increase in direct-to-consumer sales to CAD 591.0 million and a 16.6% jump in wholesale revenue to CAD 88.3 million. Gross profit climbed 13.7% to CAD 513.8 million, but gross margin narrowed to 74.0% from 74.4% a year ago due to product-mix shifts. SG&A expenses increased to CAD 313.6 million from CAD 247.7 million, reflecting global retail expansion, elevated marketing spending, and the non-recurrence of a prior-year foreign exchange gain. Operating income was CAD 200.2 million, compared with CAD 204.3 million last year, while net income attributable to shareholders stood at CAD 134.8 million, or CAD 1.36 per diluted share, down from CAD 139.7 million, or CAD 1.42 per diluted share.
3. Leadership Appointment to Drive North American Growth
Effective February 5, 2026, Patrick Bourke will assume the role of President, North America. Bourke brings nearly a decade of experience at Canada Goose, having led investor relations, strategy, business development and go-to-market teams. He is tasked with strengthening retail and wholesale execution, deepening consumer engagement and advancing the company’s channel expansion strategy, while maintaining rigorous cost discipline to support margin expansion.