Canada Goose Holdings Inc. (GOOS:CA) Q2 2026 Earnings Call Transcript
Revenue Revenue for the second quarter was $273 million, 2% higher than $268 million in Q2 of last year, but down 1% on a constant currency basis. D2C revenue was up 21% with sustained strong performance in all our regions and across both stores and e-commerce. Wholesale revenue was down 5%, in line with expectations, and revenue in the 'other' channel totaled $10 million compared to $27 million last year, reflecting an intentional pullback in friends and family events.
Gross Margin Gross margin expanded 110 basis points year-over-year to 62.4%, primarily due to favorable channel mix, more DTC and less revenue in the other channel, partially offset by higher product costs and a higher mix of apparel.
SG&A Expense Reported SG&A expense for the quarter was $188 million, an increase of $25 million or 16% year-over-year. Excluding the quarterly earn-out charge for our knitwear manufacturer, SG&A as a percentage of revenue was 67.6%, up 730 basis points year-over-year, reflecting planned investments in marketing and stores ahead of peak.
Adjusted EBIT Adjusted EBIT was a loss of $14 million for the quarter, which decreased from a profit of $3 million in Q2 last year. This was due to revenue growth and gross margin expansion being offset by planned SG&A growth.
Adjusted Net Loss Adjusted net loss attributable to shareholders was $13 million or $0.14 per share compared to a profit of $5 million or $0.05 per share in Q2 of fiscal '25.
Inventory Inventory was $461 million, down 3% from last year, reflecting stronger consumer demand and tighter inventory management. Inventory turnover was 0.9x, slightly improved compared to the same period last year.
Net Debt Net debt at quarter end was $707 million compared to $826 million in the second quarter of fiscal '25, as net working capital improvements over the past 18 months delivered operating cash flows that led to reduced short-term borrowings.
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Canada Goose to Announce Q3 2026 Results on February 5, 2026
- Earnings Announcement: Canada Goose plans to release its Q3 2026 results on February 5, 2026, before market open, reflecting the company's ongoing development in high-performance outerwear and apparel.
- Conference Call Details: The company will host a conference call at 8:30 AM ET on February 5, 2026, to discuss the quarterly results, which is expected to attract investor interest regarding performance and future outlook.
- Live Webcast Availability: The conference call will be available via live webcast on the company's website, allowing investors to register for access, thereby enhancing transparency and fostering shareholder engagement.
- Replay Feature: An archived replay of the webcast will be available shortly after the call concludes, ensuring that investors who cannot participate live can still access key information, further improving information accessibility.
Louis Vuitton Opens New Flagship in Beijing, Attracting Young Consumers
- Luxury Market Recovery: Louis Vuitton officially opened its new flagship store in Beijing on January 13, 2026, attracting a large crowd of young consumers, indicating a gradual recovery in the luxury market post-pandemic, which is expected to further boost the brand's sales in China.
- Consumer Enthusiasm: On opening day, throngs of young people gathered outside the store, eagerly awaiting celebrity appearances, demonstrating that the brand can still capture the attention of Chinese consumers, thereby enhancing Louis Vuitton's position in a fiercely competitive luxury market.
- Increased Market Confidence: The opening of the new store aligns with the trend of economic recovery in China, as the resurgence in luxury demand helps to bolster consumer confidence, encouraging more brands to invest and expand in the Chinese market.
- Intensifying Competition: Despite Louis Vuitton's strong performance in China, it faces competitive pressure from domestic brands like Laopu Gold, which is projected to surpass Richemont's jewelry sales in 2025, highlighting the rise of local competitors.
