Canada Goose Holdings Inc 6-K, filed Nov 5, 2026
Canada Goose Holdings Inc. (GOOS)
6-K
2026-11-05
For: 2026-09-27
View Original
Added on
November 05, 2026
About this 6-K
Canada Goose Holdings Inc filed this 6-K on November 5, 2026.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of November, 2026
Commission File Number: 001-38027
CANADA GOOSE HOLDINGS INC.
(Translation of registrant’s name into English)
100 Queen’s Quay East, 22nd Floor
Toronto, Ontario, Canada
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
EXHIBIT INDEX
Exhibits 99.1 and 99.2 to this report of a Foreign Private Issuer on Form 6-K are deemed filed for all purposes under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended.
Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 99.3 | ||||||||
| 99.4 | ||||||||
| 99.5 | ||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Canada Goose Holdings Inc.
| By: | /s/ Neil Bowden | ||||||||||||||||
| Name: | Neil Bowden | ||||||||||||||||
| Title: | Chief Financial Officer | ||||||||||||||||
| Date: November 5, 2026 | |||||||||||||||||
Canada Goose Holdings Inc.
Condensed Consolidated Interim Financial Statements
As at and for the second and two quarters ended
September 27, 2026 and September 28, 2025
(Unaudited)
Condensed Consolidated Interim Statements of Loss
(unaudited)
(in millions of Canadian dollars, except per share amounts)
| Second quarter ended | Two quarters ended | |||||||||||||||||||
| Notes | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||
| Revenue | 4 | 274.0 | 258.8 | 389.9 | 362.9 | |||||||||||||||
| Cost of sales | 7 | 91.1 | 93.1 | 133.3 | 131.7 | |||||||||||||||
| Gross profit | 182.9 | 165.7 | 256.6 | 231.2 | ||||||||||||||||
| Selling, general & administrative expenses | 204.5 | 183.3 | 380.1 | 408.1 | ||||||||||||||||
| Operating loss | (21.6) | (17.6) | (123.5) | (176.9) | ||||||||||||||||
| Net interest, finance and other costs | 11 | 10.3 | 11.5 | 31.4 | 16.9 | |||||||||||||||
| Loss before income taxes | (31.9) | (29.1) | (154.9) | (193.8) | ||||||||||||||||
| Income tax recovery | (13.4) | (11.7) | (44.8) | (50.5) | ||||||||||||||||
| Net loss from continuing operations | (18.5) | (17.4) | (110.1) | (143.3) | ||||||||||||||||
| Net (loss) income from discontinued operations | 3 | (7.8) | — | (9.2) | 0.4 | |||||||||||||||
| Net loss | (26.3) | (17.4) | (119.3) | (142.9) | ||||||||||||||||
| Attributable to: | ||||||||||||||||||||
| Shareholders of the Company | ||||||||||||||||||||
| Continuing operations | (18.8) | (15.2) | (108.2) | (140.8) | ||||||||||||||||
| Discontinued operations | (7.8) | — | (9.2) | 0.4 | ||||||||||||||||
| Non-controlling interest | 0.3 | (2.2) | (1.9) | (2.5) | ||||||||||||||||
| Net Loss | (26.3) | (17.4) | (119.3) | (142.9) | ||||||||||||||||
| Loss per share attributable to shareholders of the Company | ||||||||||||||||||||
| Basic & diluted | 5 | $ | (0.27) | $ | (0.16) | $ | (1.21) | $ | (1.45) | |||||||||||
| Continuing operations | $ | (0.19) | $ | (0.16) | $ | (1.11) | $ | (1.45) | ||||||||||||
| Discontinued operations | $ | (0.08) | $ | — | $ | (0.10) | $ | — | ||||||||||||
The accompanying notes to the condensed consolidated interim financial statements are an integral part of these financial statements.
| Canada Goose Holdings Inc. | Page 1 of 36 | |||||||
Condensed Consolidated Interim Statements of Comprehensive Loss
(unaudited)
(in millions of Canadian dollars)
| Second quarter ended | Two quarters ended | |||||||||||||||||||
| Notes | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||
| Net loss from continuing operations | (18.5) | (17.4) | (110.1) | (143.3) | ||||||||||||||||
| Other comprehensive income (loss) | ||||||||||||||||||||
| Items that will not be reclassified to earnings, net of tax: | ||||||||||||||||||||
| Actuarial loss on post-employment obligation | — | (0.2) | (0.2) | (0.2) | ||||||||||||||||
| Items that may be reclassified to earnings, net of tax: | ||||||||||||||||||||
| Cumulative translation adjustment (loss) gain | (4.1) | 8.5 | (0.6) | 21.6 | ||||||||||||||||
| Net gain (loss) on derivatives designated as cash flow hedges | 16 | 5.6 | (5.5) | 3.9 | (7.2) | |||||||||||||||
| Reclassification of net gain on cash flow hedges to income | 16 | — | (0.6) | — | (0.5) | |||||||||||||||
| Other comprehensive income from continuing operations | 1.5 | 2.2 | 3.1 | 13.7 | ||||||||||||||||
| Comprehensive loss from continuing operations | (17.0) | (15.2) | (107.0) | (129.6) | ||||||||||||||||
| Net (loss) income from discontinued operations | (7.8) | — | (9.2) | 0.4 | ||||||||||||||||
| Other comprehensive income from discontinued operations | — | — | — | — | ||||||||||||||||
| Comprehensive (loss) income from discontinued operations | 3 | (7.8) | — | (9.2) | 0.4 | |||||||||||||||
| Comprehensive loss | (24.8) | (15.2) | 0 | (116.2) | (129.2) | |||||||||||||||
| Attributable to: | ||||||||||||||||||||
| Shareholders of the Company | ||||||||||||||||||||
| Continuing operations | (17.8) | (12.8) | (105.8) | (126.7) | ||||||||||||||||
| Discontinued operations | (7.8) | — | (9.2) | 0.4 | ||||||||||||||||
| Non-controlling interest | 0.8 | (2.4) | (1.2) | (2.9) | ||||||||||||||||
| Comprehensive loss | (24.8) | (15.2) | (116.2) | (129.2) | ||||||||||||||||
The accompanying notes to the condensed consolidated interim financial statements are an integral part of these financial statements.
| Canada Goose Holdings Inc. | Page 2 of 36 | |||||||
Condensed Consolidated Interim Statements of Financial Position
(unaudited)
(in millions of Canadian dollars)
| Notes | September 27, 2026 | September 28, 2025 | March 29, 2026 | |||||||||||
| $ | $ | $ | ||||||||||||
| Assets | Reclassified | Reclassified | ||||||||||||
| Current assets | ||||||||||||||
| Cash | 87.1 | 94.2 | 408.2 | |||||||||||
| Trade receivables | 6 | 157.3 | 155.4 | 108.4 | ||||||||||
| Inventories | 7 | 496.6 | 460.7 | 386.3 | ||||||||||
| Income taxes receivable | 24.7 | 34.7 | 19.9 | |||||||||||
| Other current assets | 15 | 56.2 | 70.4 | 45.6 | ||||||||||
| Total current assets | 821.9 | 815.4 | 968.4 | |||||||||||
| Deferred income taxes | 125.5 | 140.6 | 76.9 | |||||||||||
| Property, plant and equipment | 2 | 164.4 | 161.8 | 161.5 | ||||||||||
| Intangible assets | 123.9 | 129.9 | 127.9 | |||||||||||
| Right-of-use assets | 2, 8 | 363.8 | 285.9 | 332.1 | ||||||||||
| Goodwill | 71.2 | 72.0 | 71.1 | |||||||||||
| Other long-term assets | 15 | 41.9 | 1.2 | 15.3 | ||||||||||
| Total assets | 1,712.6 | 1,606.8 | 1,753.2 | |||||||||||
| Liabilities | ||||||||||||||
| Current liabilities | ||||||||||||||
| Accounts payable and accrued liabilities | 9, 15 | 245.6 | 228.2 | 214.0 | ||||||||||
| Provisions | 10 | 45.0 | 43.3 | 45.8 | ||||||||||
| Income taxes payable | 11.6 | 25.4 | 11.7 | |||||||||||
| Short-term borrowings | 11 | 37.9 | 45.0 | 4.2 | ||||||||||
| Current portion of lease liabilities | 8 | 92.6 | 89.3 | 92.8 | ||||||||||
| Total current liabilities | 432.7 | 431.2 | 368.5 | |||||||||||
| Provisions | 10 | 20.1 | 16.4 | 19.0 | ||||||||||
| Deferred income taxes | 7.1 | 12.5 | 11.0 | |||||||||||
Revolving Facility | 11 | — | 7.4 | — | ||||||||||
Term Loan | 11, 15 | 416.7 | 408.6 | 406.4 | ||||||||||
| Lease liabilities | 8 | 320.6 | 243.8 | 281.8 | ||||||||||
| Other long-term liabilities | 15 | 42.7 | 50.6 | 38.7 | ||||||||||
| Total liabilities | 1,239.9 | 1,170.5 | 1,125.4 | |||||||||||
| Equity | 12 | |||||||||||||
| Equity attributable to shareholders of the Company | 454.5 | 423.8 | 608.4 | |||||||||||
| Non-controlling interests | 18.2 | 12.5 | 19.4 | |||||||||||
| Total equity | 472.7 | 436.3 | 627.8 | |||||||||||
| Total liabilities and equity | 1,712.6 | 1,606.8 | 1,753.2 | |||||||||||
The accompanying notes to the condensed consolidated interim financial statements are an integral part of these financial statements.
| Canada Goose Holdings Inc. | Page 3 of 36 | |||||||
Condensed Consolidated Interim Statements of Changes in Equity
(unaudited)
(in millions of Canadian dollars)
| Share capital | Contributed surplus | Retained earnings | Accumulated other comprehensive income | Total attributable to shareholders | Non-controlling interest | Total | ||||||||||||||||||||||||||
| Notes | Multiple voting shares | Subordinate voting shares | Total | |||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Balance at March 29, 2026 | 1.4 | 112.7 | 114.1 | 84.3 | 369.2 | 40.8 | 608.4 | 19.4 | 627.8 | |||||||||||||||||||||||
| Normal course issuer bid purchase of subordinate voting shares | 12 | — | (5.0) | (5.0) | — | (17.4) | — | (22.4) | — | (22.4) | ||||||||||||||||||||||
| Normal course issuer bid purchase of subordinate voting shares held for cancellation | 12 | — | (0.3) | (0.3) | — | (1.0) | — | (1.3) | — | (1.3) | ||||||||||||||||||||||
| Tax on normal course issuer bid purchase of subordinate voting shares | 12 | — | — | — | — | (0.5) | — | (0.5) | — | (0.5) | ||||||||||||||||||||||
| Liability to broker under ASPP | 12 | — | — | — | (26.2) | — | — | (26.2) | — | (26.2) | ||||||||||||||||||||||
| Issuance of shares under LTIP | 12 | — | 9.1 | 9.1 | (9.0) | — | — | 0.1 | — | 0.1 | ||||||||||||||||||||||
| Net loss | — | — | — | — | (117.4) | — | (117.4) | (1.9) | (119.3) | |||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | 2.4 | 2.4 | 0.7 | 3.1 | |||||||||||||||||||||||
| Share-based payment | 13 | — | — | — | 11.4 | — | — | 11.4 | — | 11.4 | ||||||||||||||||||||||
| Balance at September 27, 2026 | 1.4 | 116.5 | 117.9 | 60.5 | 232.9 | 43.2 | 454.5 | 18.2 | 472.7 | |||||||||||||||||||||||
| Balance at March 30, 2025 | 1.4 | 108.2 | 109.6 | 65.4 | 346.7 | 19.5 | 541.2 | 15.4 | 556.6 | |||||||||||||||||||||||
| Issuance of shares | 12 | — | 3.7 | 3.7 | (3.7) | — | — | — | — | — | ||||||||||||||||||||||
| Net loss | — | — | — | — | (140.4) | — | (140.4) | (2.5) | (142.9) | |||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | — | 14.1 | 14.1 | (0.4) | 13.7 | |||||||||||||||||||||||
| Share-based payment | 13 | — | — | — | 8.9 | — | — | 8.9 | — | 8.9 | ||||||||||||||||||||||
| Balance at September 28, 2025 | 1.4 | 111.9 | 113.3 | 70.6 | 206.3 | 33.6 | 423.8 | 12.5 | 436.3 | |||||||||||||||||||||||
The accompanying notes to the condensed consolidated interim financial statements are an integral part of these financial statements.
| Canada Goose Holdings Inc. | Page 4 of 36 | |||||||
Condensed Consolidated Interim Statements of Cash Flows
(unaudited)
(in millions of Canadian dollars)
| Second quarter ended | Two quarters ended | |||||||||||||||||||
| Notes | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||
| Reclassified | Reclassified | |||||||||||||||||||
| Operating activities | ||||||||||||||||||||
| Net loss from continuing operations | (18.5) | (17.4) | (110.1) | (143.3) | ||||||||||||||||
| Items not affecting cash: | ||||||||||||||||||||
| Depreciation and amortization | 38.8 | 31.2 | 74.3 | 62.0 | ||||||||||||||||
| Income tax recovery | (13.4) | (11.7) | (44.8) | (50.5) | ||||||||||||||||
| Interest expense | 11 | 12.4 | 10.4 | 25.7 | 14.8 | |||||||||||||||
| Foreign exchange loss (gain) | 0.7 | 1.3 | (1.1) | (2.1) | ||||||||||||||||
| Acceleration of unamortized costs on debt extinguishment | 11 | — | — | 6.0 | — | |||||||||||||||
| Loss (gain) on disposal of assets | — | 0.4 | (0.9) | 0.6 | ||||||||||||||||
| Share-based payment | 13 | 6.2 | 5.1 | 11.3 | 9.2 | |||||||||||||||
| Remeasurement of put option | 15 | (1.7) | 1.9 | 0.1 | 3.0 | |||||||||||||||
| Remeasurement of contingent consideration | 15 | (0.4) | (0.8) | (0.4) | (0.9) | |||||||||||||||
| 24.1 | 20.4 | (39.9) | (107.2) | |||||||||||||||||
| Changes in non-cash operating items | 17 | (104.2) | (77.2) | (208.8) | (106.6) | |||||||||||||||
| Arbitration award payment | 9 | — | (43.8) | — | — | |||||||||||||||
| Income taxes paid | (5.6) | (6.9) | (12.6) | (29.2) | ||||||||||||||||
| Interest paid | (10.7) | (8.4) | (23.8) | (16.9) | ||||||||||||||||
| Net cash (used in) from operating activities of discontinued operations | 3 | (0.6) | 0.8 | (1.0) | 1.2 | |||||||||||||||
| Net cash used in operating activities | (97.0) | (115.1) | (286.1) | (258.7) | ||||||||||||||||
| Investing activities | ||||||||||||||||||||
| Purchase of property, plant and equipment | (12.2) | (9.9) | (16.9) | (10.3) | ||||||||||||||||
| Initial direct costs of right-of-use assets | 8 | — | (0.4) | — | (0.4) | |||||||||||||||
| Baffin sale proceeds, net of transaction costs | 3 | 15.1 | — | 15.1 | — | |||||||||||||||
| Net cash used in investing activities of discontinued operations | 3 | (0.1) | (0.1) | (0.1) | (0.2) | |||||||||||||||
| Net cash from (used in) investing activities | 2.8 | (10.4) | (1.9) | (10.9) | ||||||||||||||||
| Financing activities | ||||||||||||||||||||
| Mainland China Facilities borrowings | 11 | 3.5 | 13.4 | 4.0 | 13.4 | |||||||||||||||
| Japan Facility borrowings | 11 | 17.4 | 20.0 | 29.7 | 28.5 | |||||||||||||||
| Revolving Facility borrowings | 11 | — | 8.0 | — | 8.0 | |||||||||||||||
| Term Loan (repayments) borrowings | 11 | (1.1) | 17.7 | (2.1) | 16.6 | |||||||||||||||
| Transaction costs on financing activities | 11 | — | (6.6) | (1.3) | (6.6) | |||||||||||||||
| Normal course issuer bid purchase of subordinate voting shares | 12 | (22.5) | — | (22.5) | — | |||||||||||||||
| Principal payments on lease liabilities | 8 | (21.0) | (20.7) | (43.4) | (39.8) | |||||||||||||||
| Settlement of term loan derivative contracts | 16 | — | 6.6 | — | 6.6 | |||||||||||||||
| Issuance of shares under LTIP | 12 | — | — | 0.1 | — | |||||||||||||||
| Net cash used in financing activities of discontinued operations | 3 | (0.1) | (0.2) | (0.4) | (0.5) | |||||||||||||||
| Net cash (used in) from financing activities | (23.8) | 38.2 | (35.9) | 26.2 | ||||||||||||||||
| Effects of foreign currency exchange rate changes on cash | (1.8) | 1.0 | 2.8 | 3.2 | ||||||||||||||||
| Decrease in cash | (119.8) | (86.3) | (321.1) | (240.2) | ||||||||||||||||
| Cash, beginning of period | 206.9 | 180.5 | 408.2 | 334.4 | ||||||||||||||||
| Cash, end of period | 87.1 | 94.2 | 87.1 | 94.2 | ||||||||||||||||
The accompanying notes to the condensed consolidated interim financial statements are an integral part of these financial statements.
| Canada Goose Holdings Inc. | Page 5 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Note 1. The Company
Organization
Canada Goose Holdings Inc. and its subsidiaries (the “Company”) design, manufacture, and sell performance luxury apparel for men, women, youth, children, and babies. The Company’s product offerings include various styles of down-filled outerwear, rain and everyday jackets, fleece, vests, apparel, footwear, and accessories for the fall, winter, and spring seasons. The Company’s head office is located at 100 Queens Quay East, Toronto, Canada, M5E 1V3. The use of the terms “Canada Goose”, “we”, and “our” throughout these notes to the condensed consolidated interim financial statements ("Interim Financial Statements") refer to the Company.
Canada Goose is a public company listed on the Toronto Stock Exchange and the New York Stock Exchange under the trading symbol “GOOS”. The principal shareholders of the Company are investment funds advised by Bain Capital LP and its affiliates (“Bain Capital”), and DTR LLC ("DTR"), an entity indirectly controlled by the Chairman and Chief Executive Officer of the Company. The principal shareholders hold multiple voting shares representing 53.4% of the total shares outstanding as at September 27, 2026, or 92.0% of the combined voting power of the total voting shares outstanding. Subordinate voting shares that trade on public markets represent 46.6% of the total shares outstanding as at September 27, 2026, or 8.0% of the combined voting power of the total voting shares outstanding.
Statement of compliance
The Interim Financial Statements are prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”), specifically IAS 34, Interim Financial Reporting. Certain information, which is considered material to the understanding of the Interim Financial Statements and is normally included in the audited annual consolidated financial statements prepared in accordance with IFRS Accounting Standards, is not provided in these notes. These Interim Financial Statements should be read in conjunction with the Company's audited annual consolidated financial statements for the year ended March 29, 2026.
The Interim Financial Statements were authorized for issuance in accordance with a resolution of the Company’s Board of Directors on November 4, 2026.
Fiscal year
The Company's fiscal year is a 52 or 53-week reporting cycle with the fiscal year ending on the Sunday closest to March 31. Each fiscal quarter is 13 weeks for a 52-week fiscal year. Fiscal 2027 is a 52-week fiscal year.
Operating segments
The Company classifies its business into three operating and reportable segments: Direct-to-Consumer ("DTC"), Wholesale, and Other. The DTC segment comprises sales to customers through our retail stores and our e-Commerce platforms available across numerous markets, which include the recommerce platform Canada Goose Generations.
The Wholesale segment comprises sales made to a mix of retailers and international distributors, who are partners that have exclusive rights to an entire market, and travel retail locations.
| Canada Goose Holdings Inc. | Page 6 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
The Other segment comprises revenue and costs that are not related to the Company’s DTC or Wholesale segments, such as sales to employees and friends and family sales, and results from the Paola Confectii business.
Seasonality
The business is seasonal, and we have historically realized a significant portion of our Wholesale revenue and operating income in the second and third quarters of the fiscal year and higher DTC revenue and operating income in the third and fourth quarters of the fiscal year. Thus, lower-than-expected revenue in these periods could have an adverse impact on our annual operating results.
Cash flows from operating activities are typically highest in the third and fourth quarters of the fiscal year due to revenue from the DTC segment and the collection of trade receivables from Wholesale revenue earlier in the year. Working capital requirements typically increase as inventory builds. Borrowings have historically increased in the first and second quarters and have been repaid in the balance of the year.
Note 2. Material accounting policy information
Basis of presentation
The accounting policies and critical accounting estimates and judgments as disclosed in the Company's audited annual financial statements for the year ended March 29, 2026, have been applied consistently in the preparation of these Interim Financial Statements except as noted below. The Interim Financial Statements are presented in Canadian dollars, the Company’s functional and presentation currency.
Certain comparative figures have been reclassified to conform with the current year presentation.
At the beginning of fiscal 2027, Management identified an immaterial error/reclassification related to the asset retirement obligation ("ARO") assets associated with its leases. It was determined that ARO assets should be presented as part of the carrying amount of the related right-of-use ("ROU") assets rather than within property, plant and equipment ("PPE"). As a result, ARO assets were reclassified from PPE to ROU assets in the interim statement of financial position as at September 28, 2025 and the annual statement of financial position as at March 29, 2026, together with the related note disclosures. The reclassification amounted to a net book value of $5.0m and $6.1m as at September 28, 2025 and March 29, 2026, respectively. These reclassifications had no impact on the interim statements of loss, the annual statement of income or (loss) earnings per share for either period. Comparative information has been adjusted accordingly.
Principles of consolidation
The Interim Financial Statements include the accounts of the Company and its subsidiaries and those investments over which the Company has control. All intercompany transactions and balances have been eliminated.
| Canada Goose Holdings Inc. | Page 7 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Standards issued and adopted
In May 2024, the International Accounting Standards Board ("IASB") issued amendments to IFRS 9, Financial Instruments, and IFRS 7, Financial Instruments: Disclosure to clarify the timing of recognition and derecognition of financial assets and liabilities, the settlement of financial liabilities using an electronic payment system, and the assessment of contractual cash flow characteristics, classification and disclosure of financial assets with environmental, social, and governance linked or other contingent features. The IASB also amended the disclosure requirements for investments in equity instruments designated as fair value through other comprehensive income and added disclosure requirements for financial instruments with contingent features. These amendments are effective for annual reporting periods beginning on or after January 1, 2026. The Company adopted the amendments to the standard beginning March 30, 2026 and has determined that there are no material impacts to the consolidated interim financial statements as a result of these amendments.
Standards issued and not yet adopted
Certain new standards, amendments, and interpretations to existing IFRS Accounting Standards have been published but are not yet effective and have not been adopted early by the Company. Management anticipates that pronouncements will be adopted as part of the Company’s accounting policy for the first period beginning after the effective date of the pronouncement. Information on new standards, amendments, and interpretations is provided below.
In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements, to improve reporting of financial performance. IFRS 18 replaces IAS 1, Presentation of Financial Statements. Many requirements from IAS 1 remain unchanged in IFRS 18. The standard sets out requirements on presentation and disclosures in financial statements. It introduces a defined structure for the statement of income composed of required categories and subtotals. The standard also introduces specific disclosure requirements for management-defined performance measures and a reconciliation between these measures and the most similar subtotal specified in IFRS Accounting Standards, which must be disclosed in a single note. IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027. Earlier application is permitted. The Company is currently evaluating the impact of the adoption of IFRS 18 on the consolidated financial statements.
Note 3. Discontinued operations
On August 5, 2026, the Company entered into an Asset Purchase Agreement with L.P. Royer Inc. for the sale of assets and certain liabilities comprising the Baffin Limited ("Baffin") business (“Baffin Sale”). The Baffin Sale reflects Management's strategic decision to divest the Baffin brand and continue to focus on its core business operations.
The Baffin Sale included substantially all assets and certain liabilities associated with the Baffin business along with the assignment of the lease for the Baffin manufacturing facility and office. The transaction closed on August 10, 2026. The purchase price remains subject to a final post-closing working capital adjustment.
| Canada Goose Holdings Inc. | Page 8 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
The major classes of assets and liabilities disposed of as at the transaction date were as follows:
(in millions of Canadian dollars) | August 10, 2026 | ||||
| $ | |||||
| Trade receivables | 2.8 | ||||
| Inventories | 15.7 | ||||
| Other current assets | 1.4 | ||||
| Property, plant and equipment | 2.0 | ||||
| Total Assets | 21.9 | ||||
| Accounts payable and accrued liabilities | 5.7 | ||||
| Total Liabilities | 5.7 | ||||
| Net Assets Disposed | 16.2 | ||||
Total cash proceeds of the sale were $15.1m, net of brokerage fees and legal fees. These fees were recorded in net (loss) income from discontinued operations in the interim statements of loss for the second and two quarters ended September 27, 2026. Total cash consideration comprised of the following:
(in millions of Canadian dollars) | August 10, 2026 | ||||
| $ | |||||
| Gross proceeds | 20.7 | ||||
| Less: Working capital adjustments | 4.5 | ||||
| Total Purchase Price | 16.2 | ||||
| Less: Other transaction fees | 1.1 | ||||
| Total Cash Consideration Received | 15.1 | ||||
Management determined that the Baffin Sale met the criteria for classification as a discontinued operation in accordance with IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations. Accordingly, Baffin has been presented as a discontinued operation separate from continuing operations in the Company's interim statements of loss and comprehensive loss for the current and comparative periods. In addition, the consolidated statements of cash flows have been restated to separately disclose the cash flows attributable to the discontinued operation for the current and comparative periods.
| Canada Goose Holdings Inc. | Page 9 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
The results of Baffin operations at the time of closing were as follows:
| Period during | Second quarter ended | Period during | Two quarters ended | ||||||||||||||
(in millions of Canadian dollars) | June 29, 2026 - August 10, 2026 | September 28, 2025 | March 30, 2026 - August 10, 2026 | September 28, 2025 | |||||||||||||
| $ | $ | $ | $ | ||||||||||||||
| Revenue | 2.6 | 13.8 | 5.6 | 17.5 | |||||||||||||
| Cost of sales | 6.8 | 9.4 | 9.3 | 12.4 | |||||||||||||
| Gross profit | (4.2) | 4.4 | (3.7) | 5.1 | |||||||||||||
| Selling, general & administrative expenses | 6.3 | 4.4 | 8.7 | 4.5 | |||||||||||||
| Operating (loss) income | (10.5) | — | (12.4) | 0.6 | |||||||||||||
| (Loss) income before income taxes | (10.5) | — | (12.4) | 0.6 | |||||||||||||
| Income tax (recovery) expense | (2.7) | — | (3.2) | 0.2 | |||||||||||||
| Net (loss) income from discontinued operations | (7.8) | — | (9.2) | 0.4 | |||||||||||||
Upon disposition, the disposal group was measured at the lower of its carrying amount and fair value less costs to sell. Fair value less costs to sell was determined based primarily on the consideration specified in the Baffin Sale, adjusted for estimated transaction costs. As a result of this assessment, the Company recognized an inventory write-down of $6.1m and an impairment loss of $3.8m for non-current assets, recorded in net (loss) income from discontinued operations in the interim statements of loss for the second and two quarters ended September 27, 2026.
Note 4. Segment information
The Company has three reportable operating segments: DTC, Wholesale, and Other. The Company measures each reportable operating segment’s performance based on revenue and segment operating income (loss), which is the profit metric utilized by the Company's chief operating decision maker, the Chairman and Chief Executive Officer, for assessing the performance of operating segments. No single customer contributed 10% or more to the Company’s revenue for the second and two quarters ended September 27, 2026 and September 28, 2025.
Corporate expenses comprise costs that do not occur through the DTC, Wholesale, or Other segments, including the cost of marketing expenditures to build brand awareness across all segments, management overhead costs in support of manufacturing operations, other corporate costs, and foreign exchange gains and losses not specifically associated with segment operations.
| Canada Goose Holdings Inc. | Page 10 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
The following table presents key performance information from continuing operations of the Company’s reportable operating segments:
| Second quarter ended | Two quarters ended | ||||||||||||||||
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||
| $ | $ | $ | $ | ||||||||||||||
| Revenue | |||||||||||||||||
| DTC | 129.6 | 126.2 | 214.1 | 204.0 | |||||||||||||
| Wholesale | 128.2 | 122.6 | 155.2 | 137.1 | |||||||||||||
| Other | 16.2 | 10.0 | 20.6 | 21.8 | |||||||||||||
| Total segment revenue | 274.0 | 258.8 | 389.9 | 362.9 | |||||||||||||
| Operating income (loss) | |||||||||||||||||
| DTC | 1.3 | 4.4 | (21.1) | (19.1) | |||||||||||||
| Wholesale | 67.4 | 58.1 | 70.2 | 56.1 | |||||||||||||
| Other | 5.4 | (0.8) | 4.2 | (5.4) | |||||||||||||
| Total segment operating income | 74.1 | 61.7 | 53.3 | 31.6 | |||||||||||||
The following table reconciles the Company’s reportable total segment operating loss to loss before income taxes:
| Second quarter ended | Two quarters ended | ||||||||||||||||
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||
| $ | $ | $ | $ | ||||||||||||||
| Total segment operating income | 74.1 | 61.7 | 53.3 | 31.6 | |||||||||||||
| Corporate expenses | 95.7 | 79.3 | 176.8 | 208.5 | |||||||||||||
| Total operating loss | (21.6) | (17.6) | (123.5) | (176.9) | |||||||||||||
| Net interest, finance and other costs | 10.3 | 11.5 | 31.4 | 16.9 | |||||||||||||
| Loss before income taxes | (31.9) | (29.1) | (154.9) | (193.8) | |||||||||||||
| Canada Goose Holdings Inc. | Page 11 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
The following table summarizes depreciation and amortization in selling, general and administrative ("SG&A") expenses of each reportable operating segment and depreciation and amortization included in corporate expenses:
| Second quarter ended | Two quarters ended | ||||||||||||||||
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||
$ | $ | $ | $ | ||||||||||||||
| Depreciation and amortization expense | |||||||||||||||||
| DTC | 31.0 | 23.7 | 59.1 | 46.8 | |||||||||||||
| Wholesale | 0.9 | 0.5 | 1.7 | 1.0 | |||||||||||||
| Other | 0.3 | 0.3 | 0.5 | 0.5 | |||||||||||||
| Total segment depreciation and amortization expense | 32.2 | 24.5 | 61.3 | 48.3 | |||||||||||||
| Corporate expenses | 3.6 | 4.0 | 7.1 | 8.1 | |||||||||||||
Total depreciation and amortization expense | 35.8 | 28.5 | 68.4 | 56.4 | |||||||||||||
Geographic information
The Company determines the geographic location of revenue based on the location of its customers.
| Second quarter ended | Two quarters ended | ||||||||||||||||
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||
| $ | $ | $ | $ | ||||||||||||||
| Canada | 50.2 | 47.5 | 74.1 | 69.4 | |||||||||||||
| United States | 57.4 | 52.0 | 79.3 | 78.0 | |||||||||||||
| North America | 107.6 | 99.5 | 153.4 | 147.4 | |||||||||||||
Greater China1 | 68.5 | 51.7 | 106.0 | 77.7 | |||||||||||||
Asia Pacific (excluding Greater China1) | 29.0 | 27.5 | 45.1 | 40.6 | |||||||||||||
| Asia Pacific | 97.5 | 79.2 | 151.1 | 118.3 | |||||||||||||
EMEA2 | 68.9 | 80.1 | 85.4 | 97.2 | |||||||||||||
| Total revenue | 274.0 | 258.8 | 389.9 | 362.9 | |||||||||||||
1Greater China comprises Mainland China, Hong Kong, Macau, and Taiwan.
2EMEA comprises Europe, the Middle East, Africa, and Latin America.
| Canada Goose Holdings Inc. | Page 12 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
The Company’s non-current, non-financial assets (comprising of PPE, intangible assets and ROU assets) are geographically located as follows:
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | March 29, 2026 | ||||||||
| $ | $ | $ | |||||||||
| Canada | 176.9 | 199.3 | 194.7 | ||||||||
| United States | 193.0 | 109.9 | 160.0 | ||||||||
| North America | 369.9 | 309.2 | 354.7 | ||||||||
Greater China1 | 60.7 | 57.1 | 56.4 | ||||||||
Asia Pacific (excluding Greater China1) | 57.8 | 45.8 | 40.8 | ||||||||
| Asia Pacific | 118.5 | 102.9 | 97.2 | ||||||||
EMEA2 | 163.7 | 165.5 | 169.6 | ||||||||
| Non-current, non-financial assets | 652.1 | 577.6 | 621.5 | ||||||||
1Greater China comprises Mainland China, Hong Kong, Macau, and Taiwan.
2EMEA comprises Europe, the Middle East, Africa, and Latin America.
| Canada Goose Holdings Inc. | Page 13 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Note 5. Earnings per share
The following table presents details for the calculation of basic and diluted earnings per share:
| Second quarter ended | Two quarters ended | ||||||||||||||||
| (in millions of Canadian dollars, except share and per share amounts) | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||
| Net loss from continuing operations attributable to shareholders of the Company | $ | (18.8) | $ | (15.2) | $ | (108.2) | $ | (140.8) | |||||||||
| Net (loss) income from discontinued operations attributable to shareholders of the Company | $ | (7.8) | $ | — | $ | (9.2) | $ | 0.4 | |||||||||
| Net loss attributable to shareholders of the Company | $ | (26.6) | $ | (15.2) | $ | (117.4) | $ | (140.4) | |||||||||
Weighted average number of multiple and subordinate voting shares outstanding1 | 97,027,585 | 97,069,513 | 97,170,754 | 96,991,610 | |||||||||||||
Weighted average number of shares on exercise of stock options, RSUs and PSUs1 | — | — | — | — | |||||||||||||
| Diluted weighted average number of multiple and subordinate voting shares outstanding | 97,027,585 | 97,069,513 | 97,170,754 | 96,991,610 | |||||||||||||
| Loss per share attributable to shareholders of the Company | |||||||||||||||||
| Basic & diluted | $ | (0.27) | $ | (0.16) | $ | (1.21) | $ | (1.45) | |||||||||
| Continuing operations | $ | (0.19) | $ | (0.16) | $ | (1.11) | $ | (1.45) | |||||||||
| Discontinued operations | $ | (0.08) | $ | — | $ | (0.10) | $ | — | |||||||||
1Subordinate voting shares issuable on the exercise of stock options are not treated as dilutive if including them would decrease the loss per share or if the average daily closing share price for the period was lower than the exercise price. Accordingly, for the second and two quarters ended September 27, 2026, 2,564,903 and 2,404,688 potentially dilutive shares, respectively, were excluded from the calculation of diluted loss per share because their effect was anti-dilutive (for the second and two quarters ended September 28, 2025 - 2,149,295 and 1,791,337 shares, respectively).
| Canada Goose Holdings Inc. | Page 14 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Note 6. Trade receivables
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | March 29, 2026 | ||||||||
| $ | $ | $ | |||||||||
| Trade accounts receivable | 116.8 | 119.9 | 92.1 | ||||||||
| Sales tax receivables | 24.6 | 27.4 | 27.8 | ||||||||
| Credit card receivables | 12.5 | 7.4 | 4.5 | ||||||||
| Other receivables | 4.7 | 2.5 | 2.7 | ||||||||
| 158.6 | 157.2 | 127.1 | |||||||||
| Less: expected credit loss and sales allowances | (1.3) | (1.8) | (18.7) | ||||||||
| Trade receivables | 157.3 | 155.4 | 108.4 | ||||||||
Note 7. Inventories
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | March 29, 2026 | ||||||||
| $ | $ | $ | |||||||||
| Raw materials | 45.5 | 34.8 | 35.2 | ||||||||
| Work in progress | 22.0 | 16.2 | 18.8 | ||||||||
| Finished goods | 429.1 | 409.7 | 332.3 | ||||||||
| Total inventories at the lower of cost and net realizable value | 496.6 | 460.7 | 386.3 | ||||||||
Inventories are written down to net realizable value when the cost of inventories is estimated to be unrecoverable due to obsolescence, damage, or declining rate of sale.
The breakdown of the provision for inventory obsolescence is presented as follows:
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | March 29, 2026 | ||||||||
| $ | $ | $ | |||||||||
| Raw material reserves | 14.3 | 18.0 | 15.4 | ||||||||
| Finished goods reserves | 36.3 | 33.5 | 29.0 | ||||||||
| Provision for obsolescence | 50.6 | 51.5 | 44.4 | ||||||||
Amounts charged to cost of sales comprise the following:
| Second quarter ended | Two quarters ended | ||||||||||||||||
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||
| $ | $ | $ | $ | ||||||||||||||
| Cost of goods manufactured | 88.1 | 90.4 | 127.4 | 126.1 | |||||||||||||
| Depreciation and amortization included in costs of sales | 3.0 | 2.7 | 5.9 | 5.6 | |||||||||||||
Cost of sales | 91.1 | 93.1 | 133.3 | 131.7 | |||||||||||||
| Canada Goose Holdings Inc. | Page 15 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Note 8. Leases
Right-of-use assets
The following table presents changes in the cost and the accumulated depreciation of the Company’s ROU assets:
| (in millions of Canadian dollars) | Retail stores | Manufacturing facilities | Other | Total | ||||||||||
| Cost | $ | $ | $ | $ | ||||||||||
March 29, 2026 (Reclassified) | 620.2 | 54.6 | 65.0 | 739.8 | ||||||||||
| Additions | 39.3 | — | 0.7 | 40.0 | ||||||||||
| Lease modifications | 38.6 | 1.2 | 2.9 | 42.7 | ||||||||||
| Derecognition on termination | (23.8) | (4.4) | (6.8) | (35.0) | ||||||||||
| Impact of foreign currency translation | 13.9 | — | 0.5 | 14.4 | ||||||||||
| September 27, 2026 | 688.2 | 51.4 | 62.3 | 801.9 | ||||||||||
| Reclassified | ||||||||||||||
| March 30, 2025 | 531.4 | 50.3 | 67.4 | 649.1 | ||||||||||
| Additions | 35.8 | — | 1.3 | 37.1 | ||||||||||
| Lease modifications | 0.1 | 7.3 | 0.2 | 7.6 | ||||||||||
| Derecognition on termination | (33.4) | (3.1) | — | (36.5) | ||||||||||
| Impact of foreign currency translation | (1.5) | — | 0.2 | (1.3) | ||||||||||
| September 28, 2025 | 532.4 | 54.5 | 69.1 | 656.0 | ||||||||||
| (in millions of Canadian dollars) | Retail stores | Manufacturing facilities | Other | Total | ||||||||||
| Accumulated depreciation | $ | $ | $ | $ | ||||||||||
March 29, 2026 (Reclassified) | 342.6 | 34.5 | 30.6 | 407.7 | ||||||||||
| Depreciation | 44.8 | 2.9 | 4.1 | 51.8 | ||||||||||
| Derecognition on termination | (23.4) | (2.5) | (3.8) | (29.7) | ||||||||||
| Impact of foreign currency translation | 8.0 | — | 0.3 | 8.3 | ||||||||||
| September 27, 2026 | 372.0 | 34.9 | 31.2 | 438.1 | ||||||||||
| Reclassified | ||||||||||||||
| March 30, 2025 | 302.3 | 30.1 | 31.4 | 363.8 | ||||||||||
| Depreciation | 35.0 | 3.7 | 3.6 | 42.3 | ||||||||||
| Derecognition on termination | (33.4) | (1.8) | — | (35.2) | ||||||||||
| Impact of foreign currency translation | (0.7) | — | (0.1) | (0.8) | ||||||||||
| September 28, 2025 | 303.2 | 32.0 | 34.9 | 370.1 | ||||||||||
| Net book value | ||||||||||||||
| September 27, 2026 | 316.2 | 16.5 | 31.1 | 363.8 | ||||||||||
September 28, 2025 (Reclassified) | 229.2 | 22.5 | 34.2 | 285.9 | ||||||||||
March 29, 2026 (Reclassified) | 277.6 | 20.1 | 34.4 | 332.1 | ||||||||||
| Canada Goose Holdings Inc. | Page 16 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Lease liabilities
The following table presents the changes in the Company's lease liabilities:
| (in millions of Canadian dollars) | Retail stores | Manufacturing facilities | Other | Total | ||||||||||
| $ | $ | $ | $ | |||||||||||
| March 29, 2026 | 304.4 | 24.6 | 45.6 | 374.6 | ||||||||||
| Additions | 38.7 | — | 0.6 | 39.3 | ||||||||||
| Lease modifications | 38.8 | 1.2 | 2.7 | 42.7 | ||||||||||
| Derecognition on termination | (1.2) | (2.0) | (2.9) | (6.1) | ||||||||||
| Principal payments | (36.2) | (3.4) | (4.2) | (43.8) | ||||||||||
| Impact of foreign currency translation | 6.3 | — | 0.2 | 6.5 | ||||||||||
| September 27, 2026 | 350.8 | 20.4 | 42.0 | 413.2 | ||||||||||
| March 30, 2025 | 260.0 | 23.3 | 47.5 | 330.8 | ||||||||||
| Additions | 34.7 | — | 1.3 | 36.0 | ||||||||||
| Lease modifications | 0.1 | 7.3 | 0.2 | 7.6 | ||||||||||
| Principal payments | (32.9) | (3.2) | (4.2) | (40.3) | ||||||||||
| Impact of foreign currency translation | (1.2) | — | 0.2 | (1.0) | ||||||||||
| September 28, 2025 | 260.7 | 27.4 | 45.0 | 333.1 | ||||||||||
Lease liabilities are classified as current and non-current liabilities as follows:
| (in millions of Canadian dollars) | Retail stores | Manufacturing facilities | Other | Total | ||||||||||
| $ | $ | $ | $ | |||||||||||
| Current lease liabilities | 77.2 | 7.2 | 8.2 | 92.6 | ||||||||||
| Non-current lease liabilities | 273.6 | 13.2 | 33.8 | 320.6 | ||||||||||
| September 27, 2026 | 350.8 | 20.4 | 42.0 | 413.2 | ||||||||||
| Current lease liabilities | 74.1 | 7.4 | 7.8 | 89.3 | ||||||||||
| Non-current lease liabilities | 186.6 | 20.0 | 37.2 | 243.8 | ||||||||||
| September 28, 2025 | 260.7 | 27.4 | 45.0 | 333.1 | ||||||||||
| Current lease liabilities | 77.1 | 7.6 | 8.1 | 92.8 | ||||||||||
| Non-current lease liabilities | 227.3 | 17.0 | 37.5 | 281.8 | ||||||||||
| March 29, 2026 | 304.4 | 24.6 | 45.6 | 374.6 | ||||||||||
For the second and two quarters ended September 27, 2026, lease payments of $5.0m and $10.8m, respectively, were not included in the measurement of lease liabilities (second and two quarters ended September 28, 2025 - $6.8m and $11.4m, respectively). These amounts primarily related to short-term leases and variable lease payments, which are expensed as incurred.
| Canada Goose Holdings Inc. | Page 17 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Note 9. Accounts payable and accrued liabilities
Accounts payable and accrued liabilities consist of the following:
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | March 29, 2026 | ||||||||
| $ | $ | $ | |||||||||
| Trade payables | 67.8 | 85.4 | 58.6 | ||||||||
| Accrued liabilities | 106.9 | 89.2 | 83.0 | ||||||||
| Employee benefits | 31.1 | 28.4 | 46.5 | ||||||||
| Derivative financial instruments | 3.2 | 2.3 | 2.8 | ||||||||
| ASPP liability (note 12) | 26.2 | — | — | ||||||||
| Other payables | 10.4 | 22.9 | 23.1 | ||||||||
| Accounts payable and accrued liabilities | 245.6 | 228.2 | 214.0 | ||||||||
Note 10. Provisions
Provisions are classified as current and non-current liabilities based on legal rights which exist as at the reporting date as follows:
| (in millions of Canadian dollars) | Warranty | Sales returns | Asset retirement obligations | Total | ||||||||||
| $ | $ | $ | $ | |||||||||||
| Current provisions | 29.0 | 16.0 | — | 45.0 | ||||||||||
| Non-current provisions | — | — | 20.1 | 20.1 | ||||||||||
| September 27, 2026 | 29.0 | 16.0 | 20.1 | 65.1 | ||||||||||
| Current provisions | 28.7 | 14.6 | — | 43.3 | ||||||||||
| Non-current provisions | — | — | 16.4 | 16.4 | ||||||||||
| September 28, 2025 | 28.7 | 14.6 | 16.4 | 59.7 | ||||||||||
| Current provisions | 28.9 | 16.9 | — | 45.8 | ||||||||||
| Non-current provisions | — | — | 19.0 | 19.0 | ||||||||||
| March 29, 2026 | 28.9 | 16.9 | 19.0 | 64.8 | ||||||||||
| Canada Goose Holdings Inc. | Page 18 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Note 11. Borrowings
Revolving Facility
The Company has an agreement with a syndicate of lenders for a senior secured asset-based revolving credit facility ("Revolving Facility") in the amount of $467.5m, with an increase in commitments to $517.5m during the peak season (June 1 - November 30). The Revolving Facility matures on May 15, 2028. Amounts owing under the Revolving Facility may be borrowed, repaid and re-borrowed for general corporate purposes. The Company has pledged substantially all of its assets as collateral for the Revolving Facility. The Revolving Facility contains financial and non-financial covenants which could impact the Company’s ability to draw funds.
The Revolving Facility has multiple interest rate charge options that are based on the Canadian prime rate, the lenders' Alternate Base Rate, European Base Rate, secured overnight financing rate ("SOFR"), EURIBOR rate or Canadian Overnight Repo Rate Average ("CORRA") plus an applicable margin, with interest payable quarterly or at the end of the then current interest period (whichever is earlier), as applicable.
As at September 27, 2026, the Company had repaid all amounts owing on the Revolving Facility (September 28, 2025 - $8.0m outstanding, March 29, 2026 - no amounts owing). As at September 27, 2026, less than $0.1m in interest and administrative fees remained outstanding (September 28, 2025 - less than $0.1m, March 29, 2026 - less than $0.1m). There were deferred financing charges of $0.4m as at September 27, 2026 (September 28, 2025 - $0.6m, March 29, 2026 - $0.5m). These expenses were included in other long-term liabilities. As at and during the two quarters ended September 27, 2026, the Company was in compliance with all covenants.
The Company had unused borrowing capacity available under the Revolving Facility of $321.1m as at September 27, 2026 (September 28, 2025 - $279.7m, March 29, 2026 - $130.0m).
The revolving credit commitment also includes a letter of credit commitment in the amount of $25.0m. As at September 27, 2026, the Company had letters of credit outstanding under the Revolving Facility of $8.5m (September 28, 2025 - $8.1m, March 29, 2026 - $8.4m).
Term Loan
The Company has a senior secured loan agreement with a syndicate of lenders that is secured on a split collateral basis ("Term Loan") alongside the Revolving Facility. On June 18, 2026, the Company entered into a repricing amendment to its existing Term Loan ("Fiscal 2027 Amendment to Term Loan").
Following the Fiscal 2027 Amendment to Term Loan, the applicable interest rate on SOFR borrowings was reduced by 50 basis points, from three-month Term SOFR +3.50% to three-month Term SOFR +3.00%, with interest payable quarterly in arrears. The Company has pledged substantially all of its assets as collateral for the Term Loan. The Term Loan contains financial and non-financial covenants which could impact the Company’s ability to draw funds. As the Term Loan is denominated in U.S. dollars, the Company remeasures the outstanding balance plus accrued interest at each balance sheet date. The Company is required to make quarterly principal repayments of USD0.75m, with the first payment made on June 30, 2026.
| Canada Goose Holdings Inc. | Page 19 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
The Company accounted for the Fiscal 2027 Amendment to Term Loan as a debt extinguishment due to a change in the syndicate lenders. As a result, deferred financing costs of $5.1m and original issue discount ("OID") of $0.9m related to the previous Term Loan were written off during the first quarter ended June 28, 2026 and recorded to net interest, finance and other costs in the interim statements of loss. The Company incurred transaction costs related to the Fiscal 2027 Amendment to Term Loan of $1.2m (USD0.8m) and an OID of $0.1m (USD0.1m), which are being amortized using the effective interest rate method.
As a result of the Fiscal 2027 Amendment to Term Loan, there were no changes to the aggregate principal amount of USD300.0m, the maturity date of August 23, 2032, the 0.50% SOFR floor, and the quarterly principal repayments of USD0.75m.
Refer to “Note 16. Financial risk management objectives and policies” for details on amendments to derivative transactions related to the Fiscal 2027 Amendment to Term Loan.
As at September 27, 2026, the Company had USD298.5m (September 28, 2025 - USD300.0m, March 29, 2026 - USD300.0m) aggregate principal amount outstanding under the Term Loan. As at and during the two quarters ended September 27, 2026, the Company was in compliance with all covenants.
The amount outstanding with respect to the Term Loan is as follows:
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | March 29, 2026 | ||||||||
| $ | $ | $ | |||||||||
| Term Loan | 422.1 | 418.3 | 416.8 | ||||||||
| Unamortized portion of deferred transaction costs | (1.1) | (5.6) | (5.2) | ||||||||
| OID | (0.1) | (1.0) | (1.0) | ||||||||
| Term Loan, net of unamortized deferred transaction costs and OID | 420.9 | 411.7 | 410.6 | ||||||||
Mainland China Facilities
A subsidiary of the Company in Mainland China has uncommitted loan facilities in the aggregate amount of RMB560.0m ($118.0m) ("Mainland China Facilities"). The term of each draw on the loans is one, three or six months or such other period as agreed upon and shall not exceed 12 months (including any extension or rollover). The interest rate on each facility is equal to 3.1% or the loan prime rate of 1 year, minus a marginal rate between 0.45% to 0.5%, and payable quarterly. Proceeds drawn on the Mainland China Facilities are being used to support working capital requirements and build up of inventory for peak season sales. As at September 27, 2026, the Company had $4.0m (RMB19.0m) owing on the Mainland China Facilities (September 28, 2025 - $13.4m (RMB68.6m), March 29, 2026 - no amounts owing).
Japan Facility
A subsidiary of the Company in Japan has entered into an uncommitted loan facility in the aggregate amount of JPY4,000.0m ($36.0m) ("Japan Facility") with a floating reference interest rate set by the issuing bank, plus an applicable margin of 0.30%. Proceeds drawn on the Japan Facility are being used to support build up of inventory for peak season sales. As at September 27, 2026, the Company had $29.7m (JPY3,300.0m) owing on the Japan Facility (September 28, 2025 - $28.5m (JPY3,050.6m), March 29, 2026 - no amounts owing).
| Canada Goose Holdings Inc. | Page 20 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Short-term Borrowings
Short-term borrowings consist of the following:
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | March 29, 2026 | ||||||||
| $ | $ | $ | |||||||||
Mainland China Facilities | 4.0 | 13.4 | — | ||||||||
Japan Facility | 29.7 | 28.5 | — | ||||||||
| Term Loan | 4.2 | 3.1 | 4.2 | ||||||||
Total short-term borrowings | 37.9 | 45.0 | 4.2 | ||||||||
Short-term borrowings are all due within the next 12 months. The Term Loan amount above reflects the quarterly principal repayments.
Net interest, finance and other costs consist of the following:
| Second quarter ended | Two quarters ended | ||||||||||||||||
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||
| $ | $ | $ | $ | ||||||||||||||
| Interest expense | |||||||||||||||||
Mainland China Facilities1 | 0.1 | — | 0.1 | — | |||||||||||||
| Japan Facility | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||
| Revolving Facility | 0.1 | 0.3 | 0.2 | 0.4 | |||||||||||||
| Term Loan | 6.6 | 5.0 | 14.1 | 9.8 | |||||||||||||
| Lease liabilities | 6.0 | 4.3 | 12.0 | 8.4 | |||||||||||||
| Standby fees | 0.3 | 0.3 | 0.6 | 0.6 | |||||||||||||
| Acceleration of unamortized costs on debt extinguishment | — | — | 6.0 | — | |||||||||||||
| Foreign exchange (gains) losses on Term Loan net of hedges | (0.2) | 0.2 | 0.7 | (3.3) | |||||||||||||
| Fair value remeasurement on the put option liability (note 15) | (1.7) | 1.9 | 0.1 | 3.0 | |||||||||||||
| Fair value remeasurement on the contingent consideration (note 15) | (0.4) | (0.8) | (0.4) | (0.9) | |||||||||||||
| Interest income | (0.6) | (0.6) | (2.4) | (2.2) | |||||||||||||
| Other costs | — | 0.8 | 0.3 | 1.0 | |||||||||||||
| Net interest, finance and other costs | 10.3 | 11.5 | 31.4 | 16.9 | |||||||||||||
1Interest expense on the Mainland China Facilities was less than $0.1m and less than $0.1m for the second and two quarters ended September 28, 2025, respectively.
| Canada Goose Holdings Inc. | Page 21 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Note 12. Shareholders' equity
Share capital transactions for the two quarters ended September 27, 2026
Normal course issuer bid for Fiscal 2027
Subsequent to the quarter, the Company announced the renewal of its normal course issuer bid in relation to its subordinate voting shares (“Fiscal 2027 NCIB”). The Company is authorized to make purchases under the Fiscal 2027 NCIB from November 10, 2026 to November 9, 2027, in accordance with the requirements of the Toronto Stock Exchange (the “TSX”). The Board of Directors of the Company has authorized the Company to repurchase up to 3,156,958 subordinate voting shares, representing approximately 10.0% of the Public Float (as defined in the rules of the TSX) for the subordinate voting shares as at October 31, 2026. Purchases will be made by means of open market transactions on the TSX, the New York Stock Exchange (the “NYSE”), or alternative trading systems, if eligible, and will conform to their regulations. In the event that the Company acquires subordinate voting shares by other means as a securities regulatory authority may permit, the purchase price of the subordinate voting shares may be different from the market price of the subordinate voting shares at the time of the acquisition. Purchases made under an issuer bid exemption order will be at a discount to the prevailing market price as per the terms of the order. Under the Fiscal 2027 NCIB, the Company may make, once per week, a block purchase (as defined in the rules of the TSX) at market price. The Company will otherwise be allowed to repurchase daily, through the facilities of the TSX, a maximum of 52,213 subordinate voting shares, representing 25% of the average daily trading volume, as calculated per the TSX rules for the six-month period starting on May 1, 2026 and ending on October 31, 2026.
In connection with the Fiscal 2027 NCIB, the Company also entered into an automatic share purchase plan (the “ASPP”) under which a designated broker may purchase subordinate voting shares under the Fiscal 2027 NCIB during the regularly scheduled quarterly trading blackout periods of the Company. The repurchases under the ASPP will be made in accordance with certain purchasing parameters and will continue until the earlier of the date on which the Company has purchased the maximum value of subordinate voting shares pursuant to the Fiscal 2027 NCIB and the expiry of the Fiscal 2027 NCIB.
Normal course issuer bid for Fiscal 2026
In November 2025, the Company renewed its normal course issuer bid in relation to its subordinate voting shares (“Fiscal 2026 NCIB”). Under the Fiscal 2026 NCIB, the Company is authorized to repurchase, during the twelve-month period ending November 9, 2026, up to 4,578,677 subordinate voting shares, representing approximately 10.0% of the Public Float (as defined in the rules of the TSX) for the subordinate voting shares as at October 27, 2025.
As at September 27, 2026, under the Fiscal 2026 NCIB, the Company purchased 2,092,572 subordinate voting shares for cancellation for total cash consideration of $23.7m. As at September 27, 2026, $1.3m of the total consideration remained payable to the designated broker under the Fiscal 2026 NCIB. The carrying amount of the subordinate voting shares repurchased was charged to share capital, with the remaining $18.4m charged to retained earnings.
As at September 27, 2026, the Company recognized a liability of $26.2m, representing the maximum amount payable to the designated broker under the Fiscal 2026 NCIB, with a corresponding charge to contributed surplus.
| Canada Goose Holdings Inc. | Page 22 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Subsequent to September 27, 2026, the Company purchased an additional 1,511,275 subordinate voting shares for cancellation for total cash consideration of $17.0m. As at the date of these Interim Financial Statements, the remaining liability to the designated broker was $3.5m.
The transactions affecting the issued and outstanding share capital of the Company are described below:
| (in millions of Canadian dollars, except share amounts) | Multiple voting shares | Subordinate voting shares | Total | |||||||||||||||||||||||
| Number | $ | Number | $ | Number | $ | |||||||||||||||||||||
| March 29, 2026 | 51,004,076 | 1.4 | 46,138,366 | 112.7 | 97,142,442 | 114.1 | ||||||||||||||||||||
| Purchase of subordinate voting shares | — | — | (1,976,318) | (5.0) | (1,976,318) | (5.0) | ||||||||||||||||||||
| Purchase of subordinate voting shares held for cancellation | — | — | (116,254) | (0.3) | (116,254) | (0.3) | ||||||||||||||||||||
| Total share purchases | — | — | (2,092,572) | (5.3) | (2,092,572) | (5.3) | ||||||||||||||||||||
| Exercise of stock options | — | — | 11,111 | 0.1 | 11,111 | 0.1 | ||||||||||||||||||||
| Settlement of RSUs | — | — | 326,022 | 4.9 | 326,022 | 4.9 | ||||||||||||||||||||
| Settlement of PSUs | — | — | 184,766 | 4.1 | 184,766 | 4.1 | ||||||||||||||||||||
| Total share issuances | — | — | 521,899 | 9.1 | 521,899 | 9.1 | ||||||||||||||||||||
| September 27, 2026 | 51,004,076 | 1.4 | 44,567,693 | 116.5 | 95,571,769 | 117.9 | ||||||||||||||||||||
Share capital transactions for the two quarters ended September 28, 2025
Normal course issuer bid for Fiscal 2025
The Board of Directors authorized the Company to initiate a normal course issuer bid, in accordance with the requirements of the Toronto Stock Exchange, to purchase up to 4,556,841 subordinate voting shares over the 12-month period beginning November 22, 2024 and ending no later than November 21, 2025 (the "Fiscal 2025 NCIB"). Purchased subordinate voting shares were cancelled.
In connection with the Fiscal 2025 NCIB, the Company also entered into an automatic share purchase plan (the “Fiscal 2025 ASPP”) under which a designated broker may purchase subordinate voting shares under the Fiscal 2025 NCIB during the regularly scheduled quarterly trading blackout periods of the Company. The repurchases under the Fiscal 2025 ASPP were to be made in accordance with certain purchasing parameters and were to continue until the earlier of the date on which the Company acquired the maximum limit of subordinate voting shares pursuant to the Fiscal 2025 ASPP and the expiry of the Fiscal 2025 NCIB.
During the two quarters ended September 28, 2025, the Company made no repurchases under the Fiscal 2025 NCIB.
Since the commencement of the bid on November 22, 2024, the Company has made no repurchases under the Fiscal 2025 NCIB.
| Canada Goose Holdings Inc. | Page 23 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
The transactions affecting the issued and outstanding share capital of the Company are described below:
| (in millions of Canadian dollars, except share amounts) | Multiple voting shares | Subordinate voting shares | Total | |||||||||||||||||||||||
| Number | $ | Number | $ | Number | $ | |||||||||||||||||||||
| March 30, 2025 | 51,004,076 | 1.4 | 45,830,391 | 108.2 | 96,834,467 | 109.6 | ||||||||||||||||||||
| Settlement of RSUs | — | — | 236,353 | 3.7 | 236,353 | 3.7 | ||||||||||||||||||||
| Total share issuances | — | — | 236,353 | 3.7 | 236,353 | 3.7 | ||||||||||||||||||||
| September 28, 2025 | 51,004,076 | 1.4 | 46,066,744 | 111.9 | 97,070,820 | 113.3 | ||||||||||||||||||||
Note 13. Share-based payments
Stock options
The Company has issued stock options to purchase subordinate voting shares under its incentive plans, prior to the public share offering on March 21, 2017, the Legacy Plan, and subsequently, the Omnibus Plan. All options are issued at an exercise price that is not less than market value at the time of grant and expire ten years after the grant date.
Stock option transactions are as follows:
| Two quarters ended | |||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||
| (in millions of Canadian dollars, except share and per share amounts) | Weighted average exercise price | Number of shares | Weighted average exercise price | Number of shares | |||||||||||||
| Options outstanding, beginning of period | $ | 28.21 | 5,751,224 | $ | 30.78 | 4,757,953 | |||||||||||
| Granted | $ | 13.81 | 1,422,130 | $ | 16.82 | 1,151,845 | |||||||||||
| Exercised | $ | 8.94 | (11,111) | $ | — | — | |||||||||||
| Cancelled | $ | 25.49 | (319,378) | $ | 21.27 | (48,890) | |||||||||||
| Options outstanding, end of period | $ | 25.38 | 6,842,865 | $ | 28.11 | 5,860,908 | |||||||||||
Restricted share units
The Company has granted shares as part of the Restricted Share Unit ("RSU") program under the Omnibus Plan to employees of the Company. The RSUs are treated as equity instruments for accounting purposes. We expect that vested RSUs will be paid at settlement through the issuance of one subordinate voting share per RSU. The RSUs vest over a period of three years, a third on each anniversary of the date of grant.
| Canada Goose Holdings Inc. | Page 24 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
RSU transactions are as follows:
| Two quarters ended | |||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||
Number of shares | Number of shares | ||||||||||||||||
| RSUs outstanding, beginning of period | 895,338 | 615,158 | |||||||||||||||
| Granted | 600,526 | 462,184 | |||||||||||||||
| Settled | (326,022) | (236,353) | |||||||||||||||
| Cancelled | (49,786) | (23,980) | |||||||||||||||
| RSUs outstanding, end of period | 1,120,056 | 817,009 | |||||||||||||||
Performance share units
The Company has granted shares as part of the Performance Share Unit (“PSU”) program under the Omnibus Plan. A PSU represents the right to receive a subordinate voting share settled by the issuance of shares at the vesting date. PSUs vest on the third anniversary of the award date and are earned only if certain performance targets are achieved. Shares issued per PSU at the vesting date can decrease or increase if minimum or maximum performance targets are achieved ranging from 0% to 200% of the PSU award granted. PSUs are treated as equity instruments for accounting purposes.
PSU transactions are as follows:
| Two quarters ended | |||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||
Number of shares | Number of shares | ||||||||||||||||
| PSUs outstanding, beginning of period | 1,146,988 | 676,031 | |||||||||||||||
| Granted | 630,460 | 488,260 | |||||||||||||||
| Settled | (184,766) | — | |||||||||||||||
| Cancelled | (152,961) | (4,069) | |||||||||||||||
| PSUs outstanding, end of period | 1,439,721 | 1,160,222 | |||||||||||||||
Shares reserved for issuance
As at September 27, 2026, subordinate voting shares to a maximum of 6,776,505 shares have been reserved for issuance under equity incentive plans to select employees of the Company, with vesting contingent upon meeting the service conditions, performance goals and other conditions of the Omnibus Plan.
Accounting for share-based awards
For the second and two quarters ended September 27, 2026, the Company recorded $6.2m and $11.3m, respectively, as compensation expense for stock options, RSUs and PSUs (second and two quarters ended September 28, 2025 - $5.1m and $9.2m, respectively). Share-based compensation expense is included in SG&A expenses.
| Canada Goose Holdings Inc. | Page 25 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
The assumptions used to measure the fair value of options granted under the Black-Scholes option pricing model at the grant date were as follows:
| Two quarters ended | |||||||||||||||||
| (in millions of Canadian dollars, except share and per share amounts) | September 27, 2026 | September 28, 2025 | |||||||||||||||
| Weighted average stock price valuation | $ | 13.81 | $ | 16.82 | |||||||||||||
| Weighted average exercise price | $ | 13.81 | $ | 16.82 | |||||||||||||
| Risk-free interest rate | 2.87 | % | 2.69 | % | |||||||||||||
| Expected life in years | 5 | 5 | |||||||||||||||
| Expected dividend yield | — | % | — | % | |||||||||||||
| Volatility | 40 | % | 40 | % | |||||||||||||
| Weighted average fair value of options issued | $ | 4.47 | $ | 5.40 | |||||||||||||
RSU and PSU fair values are determined based on the market value of the subordinate voting shares at the time of grant. As at September 27, 2026, the weighted average fair value of RSUs was $13.79 (September 28, 2025 - $16.82). As at September 27, 2026, the weighted average fair value of PSUs was $13.81 (September 28, 2025 - $16.82).
Note 14. Related party transactions
The Company enters into transactions from time to time with its principal shareholders, as well as organizations affiliated with members of the Board of Directors and key management personnel. During the second and two quarters ended September 27, 2026, the Company recorded business service expenses with entities related to certain shareholders of $0.5m and $1.3m, respectively (second and two quarters ended September 28, 2025 - $0.8m and $1.6m, respectively), and revenue of $nil and less than $0.1m, respectively (second and two quarters ended September 28, 2025 - $nil and less than $0.1m, respectively). Balances owing to related parties as at September 27, 2026 totalled $0.3m (September 28, 2025 - $0.5m, March 29, 2026 - $0.4m), while balances due from related parties as at September 27, 2026 were less than $0.1m (September 28, 2025 - less than $0.1m, March 29, 2026 - less than $0.1m).
In connection with the Baffin Sale, certain lease arrangements with entities affiliated with the former controlling shareholder of Baffin (the "Baffin Vendor"), together with the related obligations, were assigned to and assumed by the purchaser pursuant to a lease assignment agreement. Accordingly, the Company derecognized the related ROU asset and lease liability. The lease liability due to the Baffin Vendor for the leased premises was $1.2m as at September 28, 2025 and $0.6m as at March 29, 2026. During the second and two quarters ended September 27, 2026, the Company paid principal and interest on the lease liability and other operating costs to entities affiliated with the Baffin Vendor totalling $0.1m and $0.6m, respectively (second and two quarters ended September 28, 2025 - $0.5m and $0.9m, respectively). No amounts were owing to Baffin entities as at September 27, 2026, September 28, 2025, and March 29, 2026.
The joint venture between the Company and Sazaby League ("Japan Joint Venture") has lease liabilities due to the non-controlling shareholder, Sazaby League, for leased premises. Lease liabilities were $0.8m as at September 27, 2026 (September 28, 2025 - $1.2m, March 29, 2026 - $0.9m). During the second and two quarters ended September 27, 2026, the Company recorded transactions with Sazaby League relating to principal and interest on lease liabilities, royalty fees, and other operating costs totalling $0.7m and $2.0m, respectively, (second and two
| Canada Goose Holdings Inc. | Page 26 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
quarters ended September 28, 2025 - $0.8m and $2.3m, respectively). Balances owing to Sazaby League as at September 27, 2026 were $0.3m (September 28, 2025 - $0.3m, March 29, 2026 - $0.3m).
During the second and two quarters ended September 27, 2026, the Japan Joint Venture sold inventory of $0.1m and $0.1m, respectively, to companies wholly owned by Sazaby League (second and two quarters ended September 28, 2025 - less than $0.1m and less than $0.1m, respectively). As at September 27, 2026, the Japan Joint Venture recognized a trade receivable of $0.1m from these companies (September 28, 2025 - less than $0.1m, March 29, 2026 - $0.1m).
In connection with the Paola Confectii business combination completed on November 1, 2023, the Company was required to make a payment to the controlling shareholders of Paola Confectii SRL ("PCML Vendors"), subject to their continued employment through November 1, 2025 and the achievement of certain performance conditions based on financial results ("Earn-Out"). The Earn-Out was fully settled as at March 29, 2026.
A lease liability due to one of the PCML Vendors for leased premises was $1.1m as at September 27, 2026 (September 28, 2025 - $1.2m, March 29, 2026 - $1.1m). During the second and two quarters ended September 27, 2026, the Company made principal and interest payments on this lease liability totalling $0.1m and $0.1m, respectively (second and two quarters ended September 28, 2025 - $0.1m and $0.1m, respectively). No amounts were owing to one of the PCML Vendors as at September 27, 2026, September 28, 2025, and March 29, 2026.
Note 15. Financial instruments and fair value
The following table presents the fair values and fair value hierarchy of the Company’s financial instruments and excludes financial instruments carried at amortized cost that are short-term in nature, where fair value approximates carrying values:
| September 27, 2026 | |||||||||||||||||
| (in millions of Canadian dollars) | Level 1 | Level 2 | Level 3 | Carrying value | Fair value | ||||||||||||
| $ | $ | $ | $ | $ | |||||||||||||
| Financial assets | |||||||||||||||||
| Derivatives included in other current assets | — | 6.3 | — | 6.3 | 6.3 | ||||||||||||
| Derivatives included in other long-term assets | — | 9.0 | — | 9.0 | 9.0 | ||||||||||||
| Financial liabilities | |||||||||||||||||
| Derivatives included in accounts payable and accrued liabilities | — | 3.2 | — | 3.2 | 3.2 | ||||||||||||
| Mainland China Facilities | — | 4.0 | — | 4.0 | 4.0 | ||||||||||||
| Japan Facility | — | 29.7 | — | 29.7 | 29.7 | ||||||||||||
Term Loan | — | 420.9 | — | 420.9 | 423.2 | ||||||||||||
| Put option liability included in other long-term liabilities | — | — | 39.0 | 39.0 | 39.0 | ||||||||||||
| Contingent consideration included in other long-term liabilities | — | — | 0.1 | 0.1 | 0.1 | ||||||||||||
| Canada Goose Holdings Inc. | Page 27 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
| September 28, 2025 | |||||||||||||||||
| (in millions of Canadian dollars) | Level 1 | Level 2 | Level 3 | Carrying value | Fair value | ||||||||||||
| $ | $ | $ | $ | $ | |||||||||||||
| Financial assets | |||||||||||||||||
| Derivatives included in other current assets | — | 7.1 | — | 7.1 | 7.1 | ||||||||||||
| Financial liabilities | |||||||||||||||||
| Derivatives included in accounts payable and accrued liabilities | — | 2.3 | — | 2.3 | 2.3 | ||||||||||||
| Earn-Out included in accounts payable and accrued liabilities (note 14) | — | — | 21.3 | 21.3 | 21.3 | ||||||||||||
| Mainland China Facilities | — | 13.4 | — | 13.4 | 13.4 | ||||||||||||
| Japan Facility | — | 28.5 | — | 28.5 | 28.5 | ||||||||||||
Revolving Facility | — | 8.0 | — | 8.0 | 8.0 | ||||||||||||
Term Loan | — | 411.7 | — | 411.7 | 419.7 | ||||||||||||
| Derivatives included in other long-term liabilities | — | 5.7 | — | 5.7 | 5.7 | ||||||||||||
| Put option liability included in other long-term liabilities | — | — | 41.0 | 41.0 | 41.0 | ||||||||||||
| Contingent consideration included in other long-term liabilities | — | — | 0.7 | 0.7 | 0.7 | ||||||||||||
| March 29, 2026 | |||||||||||||||||
| (in millions of Canadian dollars) | Level 1 | Level 2 | Level 3 | Carrying value | Fair value | ||||||||||||
| $ | $ | $ | $ | $ | |||||||||||||
| Financial assets | |||||||||||||||||
| Derivatives included in other current assets | — | 4.4 | — | 4.4 | 4.4 | ||||||||||||
| Derivatives included in other long-term assets | — | 0.2 | — | 0.2 | 0.2 | ||||||||||||
| Financial liabilities | |||||||||||||||||
| Derivatives included in accounts payable and accrued liabilities | — | 2.8 | — | 2.8 | 2.8 | ||||||||||||
Term Loan | — | 410.6 | — | 410.6 | 417.6 | ||||||||||||
| Derivatives included in other long-term liabilities | — | 0.3 | — | 0.3 | 0.3 | ||||||||||||
| Put option liability included in other long-term liabilities | — | — | 37.4 | 37.4 | 37.4 | ||||||||||||
| Contingent consideration included in other long-term liabilities | — | — | 0.5 | 0.5 | 0.5 | ||||||||||||
| Canada Goose Holdings Inc. | Page 28 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
In connection with the Japan Joint Venture, for the second and two quarters ended September 27, 2026, the Company recorded a decrease of JPY55.8m ($0.4m, excluding translation losses of less than $0.1m) and a decrease of JPY57.4m ($0.4m, excluding translation losses of less than $0.1m) on the remeasurement of the contingent consideration, respectively. The Company recorded a decrease of JPY185.1m ($1.7m, excluding translation losses of $1.0m) and an increase of JPY22.9m ($0.1m, excluding translation losses of $1.5m) on the remeasurement of the put option liability during the second and two quarters ended September 27, 2026, respectively. The change in fair value of the put option liability was driven by progression through the 10-year term.
For the second and two quarters ended September 28, 2025, the Company recorded a decrease of JPY78.5m ($0.8m, excluding translation losses of less than $0.1m) and a decrease of JPY86.5m ($0.9m, excluding translation losses of less than $0.1m) on the remeasurement of the contingent consideration, respectively. The Company recorded an increase of JPY199.7m ($1.3m, excluding translation losses of $0.6m) and an increase of JPY315.5m ($2.0m, excluding translation losses of $1.0m) on the remeasurement of the put option liability during the second and two quarters ended September 28, 2025, respectively.
Note 16. Financial risk management objectives and policies
The Company’s primary risk management objective is to protect the Company’s assets and cash flow, in order to increase the Company’s enterprise value.
The Company is exposed to capital management risk, liquidity risk, credit risk, market risk, foreign exchange risk, and interest rate risk. The Company’s senior management and Board of Directors oversee the management of these risks. The Board of Directors reviews and agrees upon policies for managing each of these risks, which are summarized below.
Capital management
The Company manages its capital and capital structure with the objectives of safeguarding sufficient working capital over the annual operating cycle and providing sufficient financial resources to grow operations to meet long-term consumer demand. The Board of Directors of the Company monitors the Company’s capital management on a regular basis. The Company will continually assess the adequacy of the Company’s capital structure and capacity and make adjustments within the context of the Company’s strategy, economic conditions, and risk characteristics of the business.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to satisfy the requirements for business operations, capital expenditures, debt service and general corporate purposes under normal and stressed conditions. The primary source of liquidity is funds generated by operating activities; the Company also relies on the Mainland China Facilities, the Japan Facility, and the Revolving Facility as sources of funds for short-term working capital needs. The Company continuously reviews both actual and forecasted cash flows to ensure that the Company has appropriate capital capacity.
| Canada Goose Holdings Inc. | Page 29 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
The following table summarizes the amount of contractual undiscounted future cash flow requirements by fiscal year as at September 27, 2026:
| (in millions of Canadian dollars) | Q3 to Q4 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | Thereafter | Total | ||||||||||||||||||
| $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
| Accounts payable and accrued liabilities | 245.6 | — | — | — | — | — | — | 245.6 | ||||||||||||||||||
| Mainland China Facilities | 4.0 | — | — | — | — | — | — | 4.0 | ||||||||||||||||||
| Japan Facility | 29.7 | — | — | — | — | — | — | 29.7 | ||||||||||||||||||
Term Loan | 2.1 | 4.2 | 4.2 | 4.2 | 4.2 | 4.2 | 399.0 | 422.1 | ||||||||||||||||||
Interest commitments relating to borrowings1 | 14.8 | 28.5 | 28.5 | 28.5 | 28.5 | 28.5 | 11.3 | 168.6 | ||||||||||||||||||
| Lease obligations | 58.7 | 116.9 | 100.3 | 78.7 | 65.5 | 45.8 | 118.0 | 583.9 | ||||||||||||||||||
| Pension obligation | — | — | — | — | — | — | 1.2 | 1.2 | ||||||||||||||||||
| Warehousing and logistics | 6.1 | 16.6 | 14.8 | 0.8 | — | — | — | 38.3 | ||||||||||||||||||
| Total contractual obligations | 361.0 | 166.2 | 147.8 | 112.2 | 98.2 | 78.5 | 529.5 | 1,493.4 | ||||||||||||||||||
1Interest commitments are calculated based on the outstanding loan balance and the interest rate payable on the Mainland China Facilities, Japan Facility and the Term Loan of 2.42% 1.47% and 6.76% respectively, as at September 27, 2026.
As at September 27, 2026, we had additional liabilities including provisions for warranty, sales returns, ARO, deferred income tax liabilities, the put option liability and the contingent consideration on the Japan Joint Venture. These liabilities have not been included in the table above as the timing and amount of future payments are uncertain.
Letter of guarantee facilities
Canada Goose Inc. and its subsidiaries have entered into various letter of guarantee facilities with banking partners to support working capital and retail operations through letters of guarantee, standby letters of credit, performance bonds, counter-guarantees, counter standby letters of credit, and similar credit instruments. Letters of guarantee are generally issued for terms of up to 12 months and are subject to a fee of 1.0% per annum based on the face value of the guarantee, plus applicable administrative costs, for the period the guarantee remains outstanding. As at September 27, 2026, outstanding amounts under these facilities totalled $30.0m, comprising $9.9m in North America, $15.3m in Mainland China, and $4.8m in Europe.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.
Credit risk arises from the possibility that certain parties will be unable to discharge their obligations. The Company manages its credit risk through a combination of third-party credit insurance and internal house risk processes. A third-party insurer provides coverage on customers’ trade accounts receivable balances, with ongoing monitoring of customer creditworthiness. This insurance covers a specified portion of revenue, which may be less than the Company's total revenue with a given customer. Under the Company’s agreement with the insurer, approved credit limits are established for certain designated customers, and up to 90% of their trade accounts receivable balances are insured. The policy includes a deductible of $0.1m and an annual coverage limit of $30.0m. As at September 27, 2026, trade accounts receivable totalling approximately $59.8m (September 28, 2025 - $62.4m, March 29, 2026 - $17.0m) were insured, subject to the policy cap and customer credit limits. In addition to insurance, the Company mitigates credit risk by establishing payment terms with customers and
| Canada Goose Holdings Inc. | Page 30 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
closely monitoring its accounts receivable exposure. As at September 27, 2026, expected credit losses and sales allowances totalled $1.3m (September 28, 2025 - $1.8m, March 29, 2026 - $18.7m).
Within Japan, the Company has an agreement with a third-party that insures the risk of trade accounts receivable for certain designated customers for a maximum of JPY540.0m per annum subject to a deductible of 10% and applicable only to accounts with receivables over JPY0.1m. As at September 27, 2026, trade accounts receivable totalling $2.2m (JPY248.8m) were insured subject to the policy cap (September 28, 2025 - $2.5m (JPY270.7m), March 29, 2026 - $0.6m (JPY71.6m)).
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise foreign exchange risk and interest rate risk.
Foreign exchange risk
Foreign exchange risk in operating cash flows
The Company’s Interim Financial Statements are expressed in Canadian dollars, but a substantial portion of the Company’s revenues, purchases, and expenses are denominated in foreign currencies, primarily U.S. dollars, euros, British pounds sterling, Swiss francs, Chinese yuan, Hong Kong dollars, Japanese yen, Taiwanese dollars, and Australian dollars. The Company has entered into forward foreign exchange contracts to reduce the foreign exchange risk associated with revenues, purchases, and expenses denominated in these currencies. Certain forward foreign exchange contracts were designated at inception and accounted for as cash flow hedges.
Revenues and expenses of all foreign operations are translated into Canadian dollars at the foreign currency exchange rates that approximate the rates in effect at the dates when such items are recognized. As a result, we are exposed to foreign currency translation gains and losses. Appreciating foreign currencies relative to the Canadian dollar, to the extent they are not hedged, will positively impact operating income and net income by increasing our revenue, while depreciating foreign currencies relative to the Canadian dollar will have the opposite impact.
The Company recognized the following unrealized losses and gains in the fair value of derivatives designated as cash flow hedges in other comprehensive loss:
| Second quarter ended | Two quarters ended | ||||||||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||||||
| (in millions of Canadian dollars) | Net loss | Tax recovery | Net gain | Tax expense | Net loss | Tax recovery | Net gain | Tax expense | |||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Forward foreign exchange contracts designated as cash flow hedges | (0.6) | 0.3 | 0.4 | (0.1) | (0.6) | 0.3 | 0.3 | (0.2) | |||||||||||||||||||||||||||
| Canada Goose Holdings Inc. | Page 31 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
The Company reclassified the following gains and losses from other comprehensive loss on derivatives designated as cash flow hedges to locations in the Interim Financial Statements described below:
| Second quarter ended | Two quarters ended | ||||||||||||||||
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||
| (Gain) loss from other comprehensive loss | $ | $ | $ | $ | |||||||||||||
| Forward foreign exchange contracts designated as cash flow hedges | |||||||||||||||||
| Revenue | — | — | — | (0.5) | |||||||||||||
| SG&A expenses | — | — | — | (0.2) | |||||||||||||
| Inventory | (less than 0.1) | (0.2) | less than 0.1 | (0.3) | |||||||||||||
For the second and two quarters ended September 27, 2026, unrealized gains and losses of $2.5m and $0.3m, respectively, (second and two quarters ended September 28, 2025 - unrealized losses of $2.1m and $0.2m, respectively) on forward exchange contracts that were not treated as hedges were recognized in SG&A expenses in the interim statements of loss.
Foreign currency forward exchange contracts outstanding as at September 27, 2026 related to operating cash flows were:
| (in millions) | Aggregate Amounts | Currency | ||||||
| Forward contract to purchase Canadian dollars | USD | 56.4 | U.S. dollars | |||||
| € | 32.8 | Euros | ||||||
| ¥ | 3,160.0 | Japanese yen | ||||||
| Forward contract to sell Canadian dollars | USD | 15.0 | U.S. dollars | |||||
| € | 16.1 | Euros | ||||||
| Forward contract to purchase euros | CNY | 846.7 | Chinese yuan | |||||
| £ | 17.1 | British pounds sterling | ||||||
| AUD | 8.0 | Australian dollars | ||||||
Foreign exchange risk on borrowings
The Company enters into derivative transactions to hedge a portion of its exposure to interest rate risk and foreign currency exchange risk related to principal and interest payments on the Term Loan denominated in U.S. dollars.
In fiscal 2026, the Company entered into cross currency swap agreements terminating on December 31, 2030 to hedge a portion of its exposure to interest rate risk and foreign currency exchange risk. The cross currency swaps involve a periodic exchange of floating rate interest payments in USD for fixed rate interest payments in CAD. At the hedge maturity date, there will be an exchange of notional principal amounts of USD270.0m for $373.6m. The cross currency swaps are designated and accounted for as cash flow hedges.
| Canada Goose Holdings Inc. | Page 32 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Following the Fiscal 2027 Amendment to Term Loan, the related cross currency swaps were amended to align with the revised interest rate terms of the underlying Term Loan, resulting in changes to both the floating-rate and fixed-rate legs of the swap. All other contractual terms of the derivatives and the associated hedging relationship remained unchanged.
Refer to "Note 11. Borrowings" for more details on the Fiscal 2027 Amendment to Term Loan.
The Company recognized the following unrealized gains and losses in the fair value of derivatives designated as hedging instruments in other comprehensive loss:
| Second quarter ended | Two quarters ended | ||||||||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||||||
| (in millions of Canadian dollars) | Net gain | Tax expense | Net loss | Tax recovery | Net gain | Tax expense | Net loss | Tax recovery | |||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Swaps designated as cash flow hedges | 6.2 | (2.1) | (5.9) | 1.9 | 4.5 | (1.5) | (7.5) | 2.5 | |||||||||||||||||||||||||||
The Company reclassified the following losses from other comprehensive loss on derivatives designated as hedging instruments to net interest, finance and other costs:
| Second quarter ended | Two quarters ended | ||||||||||||||||
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||
| Loss from other comprehensive loss | $ | $ | $ | $ | |||||||||||||
| Swaps designated as cash flow hedges | — | 0.7 | — | 1.5 | |||||||||||||
There were no forward exchange contracts in place during the second and two quarters ended September 27, 2026. For the second and two quarters ended September 28, 2025 unrealized gains and losses of $4.5m and $10.2m, respectively, in the fair value of the forward exchange contracts related to a portion of the Term Loan balance were recognized in net interest, finance and other costs in the interim statements of loss.
Interest rate risk
The Company is exposed to interest rate risk related to the effect of interest rate changes on the borrowings outstanding under the Mainland China Facilities, Japan Facility and the Term Loan, which currently bear interest rates of 2.42%, 1.47% and 6.76%, respectively.
Interest rate risk on the Term Loan is partially mitigated by cross currency swap hedges. Refer to "Foreign exchange risk on borrowings" above for more details.
| Canada Goose Holdings Inc. | Page 33 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Based on the closing balance of outstanding borrowings, a 1.00% increase in the closing interest rate for the two quarters ended September 27, 2026 would have increased interest expense on the Mainland China Facilities, Japan Facility and the Term Loan, before hedging, by less than $0.1m, $0.1m and $2.1m, respectively (two quarters ended September 28, 2025 - $0.1m, $0.1m and $2.1m, respectively). As at September 27, 2026, the Company has repaid all amounts outstanding on its other borrowing facilities. In the comparative period, as at the two quarters ended September 28, 2025, along with the Mainland China Facilities, Japan Facility and the Term Loan, the Company also had outstanding borrowings under the Revolving Facility, for which a 1.00% increase in the closing interest rate would have increased interest expense by less than $0.1m.
Note 17. Selected cash flow information
Changes in non-cash operating items
| Second quarter ended | Two quarters ended | ||||||||||||||||
| (in millions of Canadian dollars) | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||
| $ | $ | $ | $ | ||||||||||||||
| Reclassified | Reclassified | ||||||||||||||||
| Trade receivables | (71.7) | (77.3) | (50.8) | (51.7) | |||||||||||||
| Inventories | (28.0) | (19.9) | (126.1) | (77.7) | |||||||||||||
| Other current assets | (21.1) | (15.0) | (9.5) | (23.0) | |||||||||||||
| Accounts payable and accrued liabilities | 12.5 | 25.8 | (4.5) | 20.3 | |||||||||||||
| Provisions | 7.5 | 8.1 | (0.6) | 2.9 | |||||||||||||
| Other | (3.4) | 1.1 | (17.3) | 22.6 | |||||||||||||
| Change in non-cash operating items | (104.2) | (77.2) | (208.8) | (106.6) | |||||||||||||
| Canada Goose Holdings Inc. | Page 34 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Changes in liabilities and equity arising from financing activities
| Mainland China Facilities | Japan Facility | Revolving Facility | Term Loan | Lease liabilities | Share capital | |||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||
| March 29, 2026 | — | — | (0.5) | 410.6 | 374.6 | 114.1 | ||||||||||||||
| Cash flows: | ||||||||||||||||||||
| Mainland China Facilities borrowings | 4.0 | — | — | — | — | — | ||||||||||||||
| Japan Facility borrowings | — | 29.7 | — | — | — | — | ||||||||||||||
| Term Loan repayments | — | — | — | (2.1) | — | — | ||||||||||||||
| Transactions costs on financing activities | — | — | — | (1.2) | — | — | ||||||||||||||
| Term loan original issued discount | — | — | — | (0.1) | — | — | ||||||||||||||
| Normal course issuer bid purchase of subordinate voting shares | — | — | — | — | — | (22.5) | ||||||||||||||
| Principal payments on lease liabilities | — | — | — | — | (43.4) | — | ||||||||||||||
| Net cash used in financing activities of discontinued operations | — | — | — | — | (0.4) | — | ||||||||||||||
| Issuance of shares under LTIP | — | — | — | — | — | 0.1 | ||||||||||||||
| Non-cash items: | ||||||||||||||||||||
| Amortization of deferred transaction costs | — | — | 0.1 | 0.3 | — | — | ||||||||||||||
| Acceleration of unamortized costs on debt extinguishment | — | — | — | 6.0 | — | — | ||||||||||||||
| Unrealized foreign exchange loss | — | — | — | 7.4 | 6.5 | — | ||||||||||||||
| Additions and amendments to lease liabilities (note 8) | — | — | — | — | 82.0 | — | ||||||||||||||
| Derecognition on termination of lease liabilities (note 8) | — | — | — | — | (6.1) | — | ||||||||||||||
| Share purchase charge to retained earnings (note 12) | — | — | — | — | — | 18.4 | ||||||||||||||
| Normal course issuer bid purchase of subordinate voting shares held for cancellation (note 12) | — | — | — | — | — | (1.2) | ||||||||||||||
| Contributed surplus on share issuances (note 12) | — | — | — | — | — | 9.0 | ||||||||||||||
| September 27, 2026 | 4.0 | 29.7 | (0.4) | 420.9 | 413.2 | 117.9 | ||||||||||||||
| Canada Goose Holdings Inc. | Page 35 of 36 | |||||||
Notes to the Condensed Consolidated Interim Financial Statements
(unaudited)
Mainland China Facilities | Japan Facility | Revolving Facility | Term Loan | Lease liabilities | Share capital | |||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||
| March 30, 2025 | — | — | (0.7) | 412.0 | 330.8 | 109.6 | ||||||||||||||
| Cash flows: | ||||||||||||||||||||
| Mainland China Facilities borrowings | 13.4 | — | — | — | — | — | ||||||||||||||
| Japan Facility borrowings | — | 28.5 | — | — | — | — | ||||||||||||||
| Revolving Facility borrowings | — | — | 8.0 | — | — | — | ||||||||||||||
| Term Loan borrowings | — | — | — | 16.6 | — | — | ||||||||||||||
| Transaction costs on financing activities | — | — | — | (5.6) | — | — | ||||||||||||||
| Term loan original issued discount | — | — | — | (1.0) | — | — | ||||||||||||||
| Principal payments on lease liabilities | — | — | — | — | (39.8) | — | ||||||||||||||
| Net cash used in financing activities of discontinued operations | — | — | — | — | (0.5) | — | ||||||||||||||
| Non-cash items: | ||||||||||||||||||||
| Amortization of deferred transaction costs | — | — | 0.1 | 0.5 | — | — | ||||||||||||||
| Unrealized foreign exchange gain | — | — | — | (10.8) | (1.0) | — | ||||||||||||||
| Additions and amendments to lease liabilities (note 8) | — | — | — | — | 43.6 | — | ||||||||||||||
| Contributed surplus on share issuances (note 12) | — | — | — | — | — | 3.7 | ||||||||||||||
| September 28, 2025 | 13.4 | 28.5 | 7.4 | 411.7 | 333.1 | 113.3 | ||||||||||||||
| Canada Goose Holdings Inc. | Page 36 of 36 | |||||||
CANADA GOOSE HOLDINGS INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
For the second and two quarters ended September 27, 2026
The following Management’s Discussion and Analysis (“MD&A”) for Canada Goose Holdings Inc. (“us,” “we,” “our,” “Canada Goose” or the “Company”) is dated November 4, 2026 and provides information concerning our results of operations and financial condition for the second and two quarters ended September 27, 2026. You should read this MD&A together with our unaudited condensed consolidated interim financial statements and the related notes as at and for the second and two quarters ended September 27, 2026 (“Interim Financial Statements”) and our audited consolidated financial statements and the related notes for the fiscal year ended March 29, 2026 (“Annual Financial Statements”). Additional information about Canada Goose is available on our website at www.canadagoose.com, on the SEDAR+ website at www.sedarplus.ca, and on the EDGAR section of the U.S. Securities and Exchange Commission (the “SEC”) website at www.sec.gov, including our Annual Report on Form 20-F for the fiscal year ended March 29, 2026 (“Annual Report”).
CAUTIONARY NOTE REGARDING FORWARD‑LOOKING STATEMENTS
This MD&A contains forward-looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Forward-looking statements can be identified by words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “predict,” “project,” “potential,” “target,” “will,” “would,” and other similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. They appear in many places throughout this MD&A and include statements regarding our intentions, beliefs, or current expectations concerning, among other things, our results of operations, financial condition, liquidity, business prospects, growth, strategies, expectations regarding industry trends and the size and growth rates of addressable markets, our business plan, and our growth strategies, including plans for expansion to new markets and new products, expectations for seasonal trends, and the industry in which we operate.
Certain assumptions made in preparing the forward-looking statements contained in this MD&A include:
•our ability to implement our growth strategies;
•our ability to maintain strong business relationships with our customers, suppliers, wholesalers, and distributors;
•our ability to keep pace with changing consumer preferences;
•our ability to protect our intellectual property;
•our ability to adapt to changes to our business as a whole due to environmental, social and governance (“ESG”) considerations;
| Canada Goose Holdings Inc. | Page 1 of 43 | |||||||
•the continued absence of material global supply chain disruptions to our business, and our ability to fulfill demand and maintain sufficient inventory levels, which we continue to monitor;
•our ability to adapt to changing macroeconomic and international trade conditions, including interest rates, currency exchange rates, or enacted tariffs (and retaliatory measures), possible changes therefrom and other trade restrictions; and
•the absence of material adverse changes in our industry or the global economy.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We believe that these risks and uncertainties include, but are not limited to, those described in the “Risk Factors” section of our Annual Report and other risk factors described herein, which include, but are not limited to, the following risks:
•we may not open retail stores or expand e-Commerce access on our planned timelines;
•we may be adversely impacted by trade barriers, including enacted and prospective additional tariffs and regulations in the United States, China, the United Kingdom and the European Union, which could apply to our products or increase the price of our raw materials. For example, on August 22, 2026, the United States enacted additional U.S. duties (the “August 2026 Duties”). The August 2026 Duties apply to a broad range of Canadian and other goods globally, including goods qualifying under the Canada-United States-Mexico Agreement (CUSMA), such as certain of the Company’s products. These August 2026 Duties increase (and related retaliatory measures or further changes in trade policy may further increase) the cost of selling our products in the United States, require changes to our pricing or supply chain, reduce demand for our products, and adversely affect our margins, results of operations and competitive position. Export requirements, tariffs, taxes and other restrictions and expenses could also increase the prices of our products and make us less competitive in some countries or markets;
•we may be unable to maintain the strength of our brand or to expand our brand to new products and geographies;
•unanticipated changes in the effective tax rate or adverse outcomes from audit examinations of corporate income or other tax returns;
•our indebtedness may adversely affect our financial condition, and we may not be able to refinance or renegotiate such indebtedness on favourable or satisfactory terms;
•an economic downturn and general economic conditions (for example, more elevated inflation, energy costs and rising interest rates) may further affect discretionary consumer spending;
•we may not be able to satisfy changing consumer preferences;
•global political events, including the impact of political disruptions and protests, which may cause business interruptions;
•our ability to procure high quality raw materials and certain finished goods globally at consistent pricing;
| Canada Goose Holdings Inc. | Page 2 of 43 | |||||||
•our ability to manage inventory and forecast our inventory needs, which we continuously monitor, and to manage our production distribution networks;
•we may not be able to protect or preserve our brand image and proprietary rights globally;
•the success of our business strategy;
•our ability to manage our exposure to data security and cybersecurity events;
•disruptions to manufacturing, distribution activities and product quality due to factors such as operational issues, disruptions in transportation logistic functions or labour shortages or disruptions;
•risks and global disruptions associated with geopolitical events, as well as the international trade environment;
•fluctuations in consumer sentiment and ongoing demand for luxury goods in our key markets;
•fluctuations in raw material costs, interest rates and currency exchange rates;
•our ability to comply with and manage risks associated with complex and changing laws, regulations and global standards; and
•we may be unable to maintain effective internal controls over financial reporting.
Although we base the forward-looking statements contained in this MD&A on assumptions that we believe are reasonable, we caution you that actual results and developments (including our results of operations, financial condition, liquidity and capital resources, and the development of the industry in which we operate) may differ materially from those made in or suggested by the forward-looking statements contained in this MD&A. Additional impacts may arise that we are not aware of currently. The potential of such additional impacts intensifies the business and operating risks that we face, and should be considered when reading the forward-looking statements contained in this MD&A. In addition, even if results and developments are consistent with the forward-looking statements contained in this MD&A, those results and developments may not be indicative of results or developments in subsequent periods. As a result, any or all of our forward-looking statements in this MD&A may prove to be inaccurate. No forward-looking statement is a guarantee of future results. Moreover, we operate in a highly competitive and rapidly changing environment in which new risks often emerge. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make.
You should read this MD&A and the documents that we reference herein completely and with the understanding that our actual future results may be materially different from what we expect. The forward-looking statements contained herein are made as of the date of this MD&A, and we do not assume any obligation to update any forward-looking statements except as required by applicable laws.
| Canada Goose Holdings Inc. | Page 3 of 43 | |||||||
BASIS OF PRESENTATION
The Interim Financial Statements are prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”), specifically IAS 34, Interim Financial Reporting. The Interim Financial Statements do not include all of the information required for Annual Financial Statements and should be read in conjunction with the Annual Financial Statements. Certain financial measures contained in this MD&A are non-IFRS financial measures and are discussed further under “Non-IFRS Financial Measures and Other Specified Financial Measures” below.
The Interim Financial Statements and the accompanying notes have been prepared using the accounting policies described in “Note 2. Material accounting policy information” in the Interim Financial Statements and the Annual Financial Statements.
All references to “$”, “CAD” and “dollars” refer to Canadian dollars, “USD” refers to U.S. dollars, “GBP” refers to British pounds sterling, “EUR” refers to euros, “CHF” refers to Swiss francs, “CNY” refers to Chinese yuan, “RMB” refers to Chinese renminbi, “HKD” refers to Hong Kong dollars, and “JPY” refers to Japanese yen unless otherwise indicated. Certain totals, subtotals and percentages throughout this MD&A may not reconcile due to rounding. This MD&A and the accompanying Interim Financial Statements are presented in millions of Canadian dollars except where otherwise indicated.
All references to “fiscal 2025” are to the Company’s fiscal year ended March 30, 2025; to “fiscal 2026” are to the Company’s fiscal year ended March 29, 2026; and to “fiscal 2027” are to the Company’s fiscal year ending March 28, 2027.
The Company's fiscal year is a 52 or 53-week reporting cycle with the fiscal year ending on the Sunday closest to March 31. Each fiscal quarter is 13 weeks for a 52-week fiscal year. The additional week in a 53-week fiscal year is added to the third quarter. Fiscal 2025, fiscal 2026 and fiscal 2027 are each 52-week fiscal years.
Refer to “Basis of Presentation” in the Interim Financial Statements for additional details on the updates made to the comparable period.
Refer to “Components of Our Results of Operations” in the MD&A section of our Annual Report for a description of the Company’s financial measures in accordance with IFRS Accounting Standards. There have been no material changes in the Company’s components of results of operations since March 29, 2026.
The financial information included in this MD&A reflects the Company's continuing operations after the Baffin Sale (as defined below). Refer to “Business Developments” section of this MD&A for more details on the transaction.
| Canada Goose Holdings Inc. | Page 4 of 43 | |||||||
SUMMARY OF FINANCIAL PERFORMANCE
The following table summarizes results of operations for the second and two quarters ended September 27, 2026, compared to the second and two quarters ended September 28, 2025, and expresses the percentage relationship to revenue of certain financial statement captions. Basis points (“bps”) express the changes between percentages. See “Results of Operations” for additional details.
| CAD $ millions (except per share data) | Second quarter ended | Two quarters ended | |||||||||||||||||||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | % Change | September 27, 2026 | September 28, 2025 | % Change | ||||||||||||||||||||||||||||||||||||||||||
Statement of Operations data: | |||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | 274.0 | 258.8 | 5.9 | % | 389.9 | 362.9 | 7.4 | % | |||||||||||||||||||||||||||||||||||||||
| Gross profit | 182.9 | 165.7 | 10.4 | % | 256.6 | 231.2 | 11.0 | % | |||||||||||||||||||||||||||||||||||||||
| Gross margin | 66.8 | % | 64.0 | % | 280 | bps | 65.8 | % | 63.7 | % | 210 | bps | |||||||||||||||||||||||||||||||||||
| Operating loss | (21.6) | (17.6) | (22.7) | % | (123.5) | (176.9) | 30.2 | % | |||||||||||||||||||||||||||||||||||||||
| Net loss from continuing operations | (18.5) | (17.4) | (6.3) | % | (110.1) | (143.3) | 23.2 | % | |||||||||||||||||||||||||||||||||||||||
| Net (loss) income from discontinued operations | (7.8) | — | — | % | (9.2) | 0.4 | (2,400.0) | % | |||||||||||||||||||||||||||||||||||||||
| Net loss | (26.3) | (17.4) | (51.1) | % | (119.3) | (142.9) | 16.5 | % | |||||||||||||||||||||||||||||||||||||||
| Net (loss) income attributable to shareholders of the Company | (26.6) | (15.2) | (75.0) | % | (117.4) | (140.4) | 16.4 | % | |||||||||||||||||||||||||||||||||||||||
| Continuing operations | (18.8) | (15.2) | (23.7) | % | (108.2) | (140.8) | 23.2 | % | |||||||||||||||||||||||||||||||||||||||
| Discontinued operations | (7.8) | — | — | % | (9.2) | 0.4 | (2,400.0) | % | |||||||||||||||||||||||||||||||||||||||
| Loss per share attributable to shareholders of the Company | |||||||||||||||||||||||||||||||||||||||||||||||
Basic & diluted1 | $ | (0.27) | $ | (0.16) | (68.8) | % | $ | (1.21) | $ | (1.45) | 16.6 | % | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | (0.19) | $ | (0.16) | (18.8) | % | $ | (1.11) | $ | (1.45) | 23.4 | % | |||||||||||||||||||||||||||||||||||
| Discontinued operations | $ | (0.08) | $ | — | — | % | $ | (0.10) | $ | — | — | % | |||||||||||||||||||||||||||||||||||
1Subordinate voting shares issuable on the exercise of stock options are not treated as dilutive if including them would decrease the loss per share or if the average daily closing share price for the period was lower than the exercise price. Accordingly, for the second and two quarters ended September 27, 2026, 2,564,903 and 2,404,688 potentially dilutive shares, respectively, were excluded from the calculation of diluted loss per share because their effect was anti-dilutive (second and two quarters ended September 28, 2025 - 2,149,295 and 1,791,337 shares, respectively).
| Canada Goose Holdings Inc. | Page 5 of 43 | |||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | March 29, 2026 | ||||||||||||||
| Financial Position: | |||||||||||||||||
| Cash | 87.1 | 94.2 | 408.2 | ||||||||||||||
| Inventories | 496.6 | 460.7 | 386.3 | ||||||||||||||
Total assets1 | 1,712.6 | 1,606.8 | 1,753.2 | ||||||||||||||
| Total non-current liabilities | 807.2 | 739.3 | 756.9 | ||||||||||||||
| Equity | 472.7 | 436.3 | 627.8 | ||||||||||||||
1The Company identified an immaterial error/reclassification related to the asset retirement obligation (“ARO”) assets associated with its leases. It was determined that ARO assets should be presented as part of the carrying amount of the related right-of-use (“ROU”) assets rather than within property, plant and equipment (“PPE”). As a result, ARO assets were reclassified from PPE to ROU assets in the interim statement of financial position as at September 28, 2025 and the annual statement of financial position as at March 29, 2026, together with the related note disclosures. The Company reclassified $5.0m and $6.1m from PPE to ROU assets as at September 28, 2025 and March 29, 2026, respectively. Refer to “Note 2. Material accounting policy information” in our Interim Financial Statements for further details regarding the reclassification.
FACTORS AFFECTING OUR PERFORMANCE
We believe that our performance depends on many factors, including those discussed below.
•Brand and Marketing. We have made significant marketing investments to enhance our brand and attract new customers. We expect to continue to make significant marketing investments to promote our current products to new customers and new products to current and new customers, including through our e-Commerce platforms and retail store presence. Such marketing investments can entail substantial expenditures and may not result in increased sales and may unfavourably impact operating margin.
•New Products. We intend to continue investing in design, innovation, merchandising, and the development and introduction of new products, including talent development, as well as expanding offerings in our existing product categories, across styles, uses, and climates that have varying margin profiles. As our product mix evolves, our gross margin has been and may continue to be unfavourably impacted by a lower proportion of down-filled outerwear sales, which currently represent our highest margin products. Our gross margin is also impacted by our development cycle, given that there is a longer time horizon to realize the return on investment from our new products.
•Growth in Our Direct to Consumer (“DTC”) Channel. We plan to continue executing our global strategy through retail and e-Commerce expansion, though the scale of such expansion may be delayed due to current global economic conditions. We continue to monitor these conditions and their potential impact on our ability to achieve positive DTC comparable sales growth1.
1DTC comparable sales (decline) growth is a supplementary financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of this measure.
•Wholesale. Our wholesale channel is complementary to our DTC channel, as we have tailored our wholesale partnerships to complement our global DTC strategy. We continue to focus on strengthening our wholesale footprint, as our success in this channel is driven by engaging with partners who align with our luxury brand positioning.
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•Macroeconomic Conditions. We are subject to risks and exposures from the evolving macroeconomic environment, including supply chain disruptions, economic uncertainty, customer budgetary constraints, the imposition of new or existing tariffs or trade restrictions, including tariffs imposed by the United States, such as the August 2026 Duties, ongoing trade discussions and potential changes in trade relations between Canada and the United States, Mainland China and the United Kingdom, inflation, and resulting fears of potential economic slowdowns or recessions, all of which may negatively impact consumer demand for our products. We continuously monitor the direct and indirect impacts of these circumstances on our business and financial results.
•Seasonality. We experience seasonal fluctuations in our revenue and operating results and realize a significant portion of our annual wholesale revenue during our second and third fiscal quarters, and our annual DTC revenue in our third and fourth fiscal quarters, as we expand our product offering and become an all-season brand. We generated 76.8% and 81.7% of our annual wholesale revenue in the combined second and third fiscal quarters of fiscal 2026 and fiscal 2025, respectively. Additionally, we generated 82.4% and 83.3% of our annual DTC revenue in the combined third and fourth fiscal quarters of fiscal 2026 and fiscal 2025, respectively. Because of seasonal fluctuations in revenue and fixed costs associated with our business, particularly the headcount growth and premises costs associated with our expanding DTC channel, we typically experience negative and substantially reduced net income and adjusted EBIT1 in the first quarter. As a result of our seasonality, changes that impact gross margin and adjusted EBIT1, among others, can have a disproportionate impact on the quarterly results when they are recorded in our off-peak revenue periods. Business performance can also be impacted by the timing and intensity of cold weather, which may affect purchasing behaviour, including causing earlier or later purchases relative to prior periods, especially in our DTC channel.
1 Adjusted EBIT is a non-IFRS financial measure that reflects continuing operations only and excludes amounts attributable to discontinued operations. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of this measure.
Working capital requirements typically increase as inventory builds. We finance these needs through a combination of cash on hand and borrowings on our revolving credit facility, the Mainland China credit facilities, and the Japan credit facility. Historically, cash flows from operations have been highest in the third and fourth fiscal quarters of the fiscal year due to revenue from the DTC channel and the collection of receivables from wholesale revenue earlier in the year.
•Global Climate Trends. A portion of our business is dependent on cold-weather seasons and patterns to generate consumer demand for our products. Consumer demand for our products may be negatively affected to the extent global climate patterns trend warmer, reducing typical patterns of cold-weather events or increasing weather volatility.
•Foreign Exchange. We sell a significant portion of our products to customers outside of Canada, which exposes us to fluctuations in foreign currency exchange rates. During the two quarters ended September 27, 2026 and in full fiscal years 2026 and 2025, we generated 63.8%, 73.6% and 70.5%, respectively, of our revenue in currencies other than Canadian dollars.
| Canada Goose Holdings Inc. | Page 7 of 43 | |||||||
Refer to “Quantitative and Qualitative Disclosures About Market Risk - Foreign exchange risk” below for more details on foreign exchange.
•Global Social, Economic and Political Events and Other Disruptions. We are conscious of risks related to social, economic, and political instability, including geopolitical tensions, regulatory matters, market volatility, risks related to the international trade and tax environment (including tariffs, quotas, customs and other restrictions), and social unrest, each of which may be affecting consumer spending, international travel, credit markets, logistics, and foreign exchange in certain countries and travel corridors.
We remain concerned about the conflicts in Ukraine and the Middle East and continue to suspend all wholesale and e-Commerce sales to Russia. We continue to monitor these ongoing conflicts and their impacts on human life.
We have been, and may in the future be, impacted by protests and other disruptions. To the extent that such disruptions persist, we expect that operations and traffic at our retail stores may be impacted.
BUSINESS DEVELOPMENTS
On August 5, 2026, the Company entered into an Asset Purchase Agreement with L.P. Royer Inc. for the sale of assets and certain liabilities comprising the Baffin Limited (“Baffin”) business (“Baffin Sale”). The Baffin Sale reflects Management's strategic decision to divest the Baffin brand and continue to focus on its core business operations.
The Baffin Sale included substantially all assets and certain liabilities associated with the Baffin business along with the assignment of the lease for the Baffin manufacturing facility and office. The transaction closed on August 10, 2026. The purchase price remains subject to a final post-closing working capital adjustment.
Total cash proceeds of the sale were $15.1m net of brokerage fees and legal fees. These fees were recorded in net (loss) income from discontinued operations in the interim statements of loss for the second and two quarters ended September 27, 2026.
Management determined that the Baffin Sale met the criteria for classification as a discontinued operation in accordance with IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations. Accordingly, Baffin has been presented as a discontinued operation separate from continuing operations in the Company's interim statements of loss and comprehensive loss for the current and comparative periods. In addition, the consolidated statements of cash flows have been restated to separately disclose the cash flows attributable to the discontinued operation for the current and comparative periods.
Unless otherwise noted, the financial information included in this MD&A reflects the Company's continuing operations. For the second and two quarters ended September 27, 2026, net loss from discontinued operations was $7.8m and $9.2m, respectively (second and two quarters ended September 28, 2025 - net income of $nil and $0.4m, respectively).
See “Note 3. Discontinued operations” in the Interim Financial Statements for detailed information on the Baffin Sale.
| Canada Goose Holdings Inc. | Page 8 of 43 | |||||||
SEGMENTS
Our reporting segments align with our sales channels: DTC, Wholesale, and Other. We measure each reportable operating segment’s performance based on revenue and operating income.
Our DTC segment includes sales to customers through our retail stores and our e-Commerce website available across numerous markets, which includes the recommerce platform Canada Goose Generations.
Through our Wholesale segment, we sell to a mix of retailers and international distributors, who are partners that have partial or full exclusive territory rights to sell our products to a particular market through their own DTC channels or local wholesalers. The Wholesale segment also includes Travel Retail locations.
The Other segment comprises sales and costs not directly allocated to the DTC or Wholesale segments, such as sales to employees, friends and family events and certain SG&A expenses, and results from the Paola Confectii knitwear manufacturing business.
Corporate expenses comprise costs that do not occur through the DTC, Wholesale, or Other segments, including the cost of marketing expenditures to build brand awareness across all segments, management overhead costs in support of manufacturing operations, other corporate costs, and foreign exchange gains and losses not specifically associated with segment operations.
| Canada Goose Holdings Inc. | Page 9 of 43 | |||||||
As at September 27, 2026, our DTC segment by geography included the following directly operated permanent retail stores:
| Fiscal 2027 | ||||||||||||||||||||
| March 29, 2026 | Q1 Activity3 | Q2 Activity | September 27, 2026 | |||||||||||||||||
| Canada | 10 | 1 | — | 11 | ||||||||||||||||
| United States | 19 | 1 | (1) | 19 | ||||||||||||||||
| North America | 29 | 2 | (1) | 30 | ||||||||||||||||
Greater China1 | 32 | 2 | 34 | |||||||||||||||||
Asia Pacific (excluding Greater China1) | 13 | — | 3 | 16 | ||||||||||||||||
| Asia Pacific | 45 | 2 | 3 | 50 | ||||||||||||||||
EMEA2 | 14 | — | — | 14 | ||||||||||||||||
| Total permanent stores | 88 | 4 | 2 | 94 | ||||||||||||||||
| Fiscal 2026 | ||||||||||||||||||||
| March 30, 2025 | Q1 Activity | Q2 Activity | Q3 Activity | Q4 Activity4 | March 29, 2026 | |||||||||||||||
| Canada | 10 | — | — | — | — | 10 | ||||||||||||||
| United States | 16 | — | — | 1 | 2 | 19 | ||||||||||||||
| North America | 26 | — | — | 1 | 2 | 29 | ||||||||||||||
Greater China1 | 28 | (1) | 1 | 2 | 2 | 32 | ||||||||||||||
Asia Pacific (excluding Greater China1) | 10 | 2 | — | — | 1 | 13 | ||||||||||||||
| Asia Pacific | 38 | 1 | 1 | 2 | 3 | 45 | ||||||||||||||
EMEA2 | 10 | 1 | — | 1 | 2 | 14 | ||||||||||||||
| Total permanent stores | 74 | 2 | 1 | 4 | 7 | 88 | ||||||||||||||
1Greater China comprises Mainland China, Hong Kong, Macau, and Taiwan.
2EMEA comprises Europe, the Middle East, Africa, and Latin America.
3The conversion of two temporary stores to permanent stores is included in the Q1 fiscal 2027 activity. This conversion occurred due to a change in the definition of permanent stores, which, as of Q4 fiscal 2026, are now defined as directly operated retail locations with an executed lease term greater than 12 months, or locations operating under a lease intended to be ongoing or permanent in nature.
4The conversion of three temporary stores to permanent stores is included in the Q4 fiscal 2026 activity, as per the change in the definition described above.
| Canada Goose Holdings Inc. | Page 10 of 43 | |||||||
RESULTS OF OPERATIONS
For the second quarter ended September 27, 2026 compared to the second quarter ended September 28, 2025
The following table summarizes results of operations and expresses the percentage relationship to revenue of certain financial statement captions. Basis points (“bps”) expresses the changes between percentages.
| CAD $ millions (except share and per share data) | Second quarter ended | $ Change | % Change | ||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||
| Revenue | 274.0 | 258.8 | 15.2 | 5.9 | % | ||||||||||||||||||
| Cost of sales | 91.1 | 93.1 | 2.0 | 2.1 | % | ||||||||||||||||||
| Gross profit | 182.9 | 165.7 | 17.2 | 10.4 | % | ||||||||||||||||||
| Gross margin | 66.8 | % | 64.0 | % | 280 | bps | |||||||||||||||||
| SG&A expenses | 204.5 | 183.3 | (21.2) | (11.6) | % | ||||||||||||||||||
| SG&A expenses as % of revenue | 74.6 | % | 70.8 | % | (380) | bps | |||||||||||||||||
| Operating loss | (21.6) | (17.6) | (4.0) | (22.7) | % | ||||||||||||||||||
| Operating margin | (7.9) | % | (6.8) | % | (110) | bps | |||||||||||||||||
| Net interest, finance and other costs | 10.3 | 11.5 | 1.2 | 10.4 | % | ||||||||||||||||||
| Loss before income taxes | (31.9) | (29.1) | (2.8) | (9.6) | % | ||||||||||||||||||
| Income tax recovery | (13.4) | (11.7) | 1.7 | 14.5 | % | ||||||||||||||||||
| Effective tax rate | 42.0 | % | 40.2 | % | (180) | bps | |||||||||||||||||
| Net loss from continuing operations | (18.5) | (17.4) | (1.1) | (6.3) | % | ||||||||||||||||||
| Net loss from discontinued operations | (7.8) | — | (7.8) | — | % | ||||||||||||||||||
| Net loss | (26.3) | (17.4) | (8.9) | (51.1) | % | ||||||||||||||||||
| Net income (loss) attributable to non-controlling interest | 0.3 | (2.2) | 2.5 | 113.6 | % | ||||||||||||||||||
| Net loss attributable to shareholders of the Company | (26.6) | (15.2) | (11.4) | (75.0) | % | ||||||||||||||||||
| Continuing operations | (18.8) | (15.2) | (3.6) | (23.7) | % | ||||||||||||||||||
| Discontinued operations | (7.8) | — | (7.8) | — | % | ||||||||||||||||||
| Weighted average number of shares outstanding | |||||||||||||||||||||||
Basic & diluted1 | 97,027,585 | 97,069,513 | |||||||||||||||||||||
| Loss per share attributable to shareholders of the Company | |||||||||||||||||||||||
Basic & diluted1 | $ | (0.27) | $ | (0.16) | (0.11) | (68.8) | % | ||||||||||||||||
| Continuing operations | $ | (0.19) | $ | (0.16) | (0.03) | (18.8) | % | ||||||||||||||||
| Discontinued operations | $ | (0.08) | $ | — | (0.08) | — | % | ||||||||||||||||
1Subordinate voting shares issuable on the exercise of stock options are not treated as dilutive if including them would decrease the loss per share or if the average daily closing share price for the period was lower than the exercise price. Accordingly, for the second quarter ended September 27, 2026, 2,564,903 potentially dilutive shares were excluded from the calculation of diluted loss per share because their effect was anti-dilutive (second quarter ended September 28, 2025 - 2,149,295 shares).
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Revenue
| Second quarter ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | As reported | Foreign exchange impact | In constant currency1 | As reported | In constant currency1 | ||||||||||||||||||||||||||||||||||
| DTC | 129.6 | 126.2 | 3.4 | (2.6) | 0.8 | 2.7 | % | 0.6 | % | ||||||||||||||||||||||||||||||||
| Wholesale | 128.2 | 122.6 | 5.6 | — | 5.6 | 4.6 | % | 4.6 | % | ||||||||||||||||||||||||||||||||
| Other | 16.2 | 10.0 | 6.2 | 0.1 | 6.3 | 62.0 | % | 63.0 | % | ||||||||||||||||||||||||||||||||
| Total revenue | 274.0 | 258.8 | 15.2 | (2.5) | 12.7 | 5.9 | % | 4.9 | % | ||||||||||||||||||||||||||||||||
1Constant currency revenue is a non-IFRS financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of this measure.
Revenue by geography
| Second quarter ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | As reported | Foreign exchange impact | In constant currency3 | As reported | In constant currency3 | ||||||||||||||||||||||||||||||||||
| Canada | 50.2 | 47.5 | 2.7 | — | 2.7 | 5.7 | % | 5.7 | % | ||||||||||||||||||||||||||||||||
| United States | 57.4 | 52.0 | 5.4 | (0.6) | 4.8 | 10.4 | % | 9.2 | % | ||||||||||||||||||||||||||||||||
| North America | 107.6 | 99.5 | 8.1 | (0.6) | 7.5 | 8.1 | % | 7.5 | % | ||||||||||||||||||||||||||||||||
Greater China1 | 68.5 | 51.7 | 16.8 | (2.2) | 14.6 | 32.5 | % | 28.2 | % | ||||||||||||||||||||||||||||||||
Asia Pacific (excluding Greater China1) | 29.0 | 27.5 | 1.5 | 0.2 | 1.7 | 5.5 | % | 6.2 | % | ||||||||||||||||||||||||||||||||
| Asia Pacific | 97.5 | 79.2 | 18.3 | (2.0) | 16.3 | 23.1 | % | 20.6 | % | ||||||||||||||||||||||||||||||||
EMEA2 | 68.9 | 80.1 | (11.2) | 0.1 | (11.1) | (14.0) | % | (13.9) | % | ||||||||||||||||||||||||||||||||
| Total revenue | 274.0 | 258.8 | 15.2 | (2.5) | 12.7 | 5.9 | % | 4.9 | % | ||||||||||||||||||||||||||||||||
1Greater China comprises Mainland China, Hong Kong, Macau, and Taiwan.
2EMEA comprises Europe, the Middle East, Africa, and Latin America.
3Constant currency revenue is a non-IFRS financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of this measure.
Revenue for the second quarter ended September 27, 2026 was $274.0m, an increase of $15.2m, or 5.9%, from $258.8m for the second quarter ended September 28, 2025. On a constant currency1 basis, revenue increased by 4.9% for the second quarter ended September 27, 2026 compared to the second quarter ended September 28, 2025, reflecting the strengthening of the Chinese yuan and U.S. dollar relative to the Canadian dollar in the current quarter.
1Constant currency revenue is a non-IFRS financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of this measure.
| Canada Goose Holdings Inc. | Page 12 of 43 | |||||||
DTC
Revenue from our DTC segment was $129.6m for the second quarter ended September 27, 2026 compared to $126.2m for the second quarter ended September 28, 2025. The increase of $3.4m, or 2.7%, was driven by the following factors:
•Retail expansion with two net new directly operated permanent store openings during the second quarter of fiscal 2027, and 12 new directly operated permanent store openings in the prior year running for the full second quarter in fiscal 2027.
•Partially offset by DTC comparable sales decline1 of 7.5%, primarily driven by lower comparable store sales, partially offset by strong e-Commerce growth across all regions except EMEA. DTC comparable sales decline was led by EMEA with a decline of 26.9%, followed by North America and Asia Pacific both experiencing a decline of 4.1%.
1DTC comparable sales (decline) growth is a supplementary financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of this measure.
Wholesale
Revenue from our Wholesale segment was $128.2m for the second quarter ended September 27, 2026, compared to $122.6m for the second quarter ended September 28, 2025. The increase of $5.6m, or 4.6%, was primarily driven by growth in Wholesale revenue in the Asia Pacific order book and higher re-order levels and increased revenue from Travel Retail.
Other
Revenue from our Other segment was $16.2m for the second quarter ended September 27, 2026, compared to $10.0m for the second quarter ended September 28, 2025. The increase of $6.2m was primarily attributable to increased revenue from friends and family events with 3 events in the second quarter of fiscal 2027 compared to 2 events in the second quarter of fiscal 2026.
Gross Profit
| Second quarter ended | |||||||||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||||||||
| CAD $ millions | Reported | Gross margin | Reported | Gross margin | $ Change | Change in bps | |||||||||||||||||||||||||||||
| Gross profit | 182.9 | 66.8 | % | 165.7 | 64.0 | % | 17.2 | 280 | bps | ||||||||||||||||||||||||||
Gross profit and gross margin for the second quarter ended September 27, 2026 were $182.9m and 66.8%, respectively, compared to $165.7m and 64.0%, respectively, for the second quarter ended September 28, 2025. The increase in gross profit of $17.2m was primarily attributable to higher revenue and gross margin expansion. Gross margin in the current quarter was favourably impacted by product mix, cost variances from increased production efficiencies, and favourability in freight and duty, partially offset by unfavourable channel mix.
| Canada Goose Holdings Inc. | Page 13 of 43 | |||||||
SG&A Expenses
| Second quarter ended | |||||||||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||||||||
| CAD $ millions | Reported | % of revenue | Reported | % of revenue | $ Change | Change in bps | |||||||||||||||||||||||||||||
| SG&A expenses | 204.5 | 74.6 | % | 183.3 | 70.8 | % | (21.2) | (380) | bps | ||||||||||||||||||||||||||
SG&A expenses were $204.5m for the second quarter ended September 27, 2026, compared to $183.3m for the second quarter ended September 28, 2025. SG&A expenses are comprised of:
•$108.8m of costs from our operating segments for the second quarter ended September 27, 2026 compared to $103.9m for the second quarter ended September 28, 2025; and
•Corporate expenses of $95.7m for the second quarter ended September 27, 2026 compared to $79.4m for the second quarter ended September 28, 2025.
Within operating segments and corporate expenses, the Company incurs marketing expenses. These expenses are primarily focused on building brand awareness, with region-specific allocation across channels and selective use of paid media.
•$33.5m of marketing expenses were incurred in the second quarter ended September 27, 2026, compared to $28.0m in the second quarter ended September 28, 2025.
◦The increase of $5.5m was primarily driven by the timing of marketing expenditures, with spending shifted to later in the year from Q1 to better align with the peak selling season.
The increase of $21.2m or 11.6% in SG&A expenses was primarily attributable to:
•An increase of $14.7m in costs related to corporate expenses, mainly driven by:
◦investments in upper-funnel marketing and brand awareness initiatives, increased investment in personnel, samples and promotional activities; and
◦$2.2m of lower foreign exchange gains.
•An increase of $5.0m in costs related to our operating segments, mainly driven by:
▪expansion from new stores and prior year store openings, including lease costs, which have been open for the full duration of the second quarter for fiscal 2027.
▪Partially offset by $3.4m lower costs attributable to the remuneration payout associated with the Paola Confectii business combination (“Earn-Out”), which was recognized in the prior year, subsequently settled, and did not recur in fiscal 2027.
SG&A expenses as a percentage of revenue increased by 380 bps to 74.6% in the second quarter ended September 27, 2026, compared to 70.8% for the second quarter ended September 28, 2025.
| Canada Goose Holdings Inc. | Page 14 of 43 | |||||||
Operating Loss and Operating Margin
| Second quarter ended | |||||||||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||||||||
| CAD $ millions | Reported | Operating margin | Reported | Operating margin | $ Change | Change in bps | |||||||||||||||||||||||||||||
| DTC | 1.3 | 1.0 | % | 4.4 | 3.5 | % | (3.1) | (250) | bps | ||||||||||||||||||||||||||
| Wholesale | 67.4 | 52.6 | % | 58.1 | 47.4 | % | 9.3 | 520 | bps | ||||||||||||||||||||||||||
| Other | 5.4 | 33.3 | % | (0.8) | (8.0) | % | 6.2 | 4,130 | bps | ||||||||||||||||||||||||||
Total segment operating income1 | 74.1 | 61.7 | 12.4 | ||||||||||||||||||||||||||||||||
| Second quarter ended | |||||||||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||||||||
| CAD $ millions | Reported | Operating margin | Reported | Operating margin | $ Change | Change in bps | |||||||||||||||||||||||||||||
Total segment operating income1 | 74.1 | 61.7 | 12.4 | ||||||||||||||||||||||||||||||||
| Corporate expenses | (95.7) | (79.3) | (16.4) | ||||||||||||||||||||||||||||||||
| Total operating loss | (21.6) | (7.9) | % | (17.6) | (6.8) | % | (4.0) | (110) | bps | ||||||||||||||||||||||||||
1Total segment operating income is a non-IFRS financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of this measure.
For the second quarter ended September 27, 2026, operating loss and operating margin were $21.6m and (7.9)% compared to $17.6m and (6.8)% for the second quarter ended September 28, 2025. The increase in operating loss of $4.0m was attributable to increased SG&A costs, partially offset by higher gross profit as noted above. The decrease in operating margin of 110 bps was primarily the result of higher operating costs.
DTC
DTC segment operating income and operating margin were $1.3m and 1.0% for the second quarter ended September 27, 2026, compared to $4.4m and 3.5% for the second quarter ended September 28, 2025.
The decrease in operating income of $3.1m was attributable to higher operating costs associated with our global retail network, partially offset by improved revenue and gross profit.
The decrease in operating margin of (250) bps was attributable to:
•Gross margin - favourably increased by 60 bps to 74.0% in the second quarter ended September 27, 2026, compared to 73.4% for the second quarter ended September 28, 2025. The increase in gross margin was mainly driven by favourability from product mix and pricing. Freight and duty favourability helped offset inventory adjustments.
| Canada Goose Holdings Inc. | Page 15 of 43 | |||||||
•SG&A expenses as a percentage of revenue - unfavourably increased by (310) bps to 73.0% for the second quarter ended September 27, 2026, compared to 69.9% for the second quarter ended September 28, 2025. Despite higher revenue and lower costs within the retail network, higher depreciation and amortization expenses related to new store openings resulted in deleverage in the quarter.
Wholesale
Wholesale segment operating income and operating margin were $67.4m and 52.6%, respectively, for the second quarter ended September 27, 2026, compared to operating income and operating margin of $58.1m and 47.4%, respectively, for the second quarter ended September 28, 2025. The increase in operating income of $9.3m was primarily attributable to higher gross profit.
The increase in operating margin of 520 bps was attributable to:
•Gross margin - favourably increased by 590 bps to 62.4% in the second quarter ended September 27, 2026, compared to 56.5% for the second quarter ended September 28, 2025. The increase in gross margin was mainly driven by product mix.
•SG&A expenses as a percentage of revenue - unfavourably increased by (70) bps to 9.8% for the second quarter ended September 27, 2026, compared to 9.1% for the second quarter ended September 28, 2025. Despite revenue growth in the quarter, higher operating costs driven by commissions in Travel Retail and higher depreciation and amortization expenses resulted in deleverage in the quarter.
Other
Other segment operating income was $5.4m for the second quarter ended September 27, 2026 compared to operating loss of $0.8m for the second quarter ended September 28, 2025. The increase in operating income of $6.2m was attributable to gross margin expansion driven by channel mix related to increased revenue from a higher number of friends and family events and the Earn-Out in the comparative quarter that did not recur.
Net Interest, Finance and Other Costs
| Second quarter ended | |||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||
| CAD $ millions | Reported | Reported | $ Change | % Change | |||||||||||||||||||
| Net interest, finance and other costs | 10.3 | 11.5 | 1.2 | 10.4 | % | ||||||||||||||||||
Net interest, finance and other costs were $10.3m for the second quarter ended September 27, 2026, compared to $11.5m in the second quarter ended September 28, 2025. The decrease of $1.2m was primarily attributable to a $3.2m net decrease in the fair value remeasurement of the put option and contingent consideration associated with the Company’s joint venture with Sazaby League (the “Japan Joint Venture”), $0.4m of favourable foreign exchange fluctuations related to the term loan facility, net of hedging impacts, and a $0.8m decrease in other costs. These decreases were partially offset by $1.5m of higher interest expense on higher outstanding borrowings and $1.7m of higher interest expense on lease liabilities.
| Canada Goose Holdings Inc. | Page 16 of 43 | |||||||
Income Taxes
| Second quarter ended | |||||||||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||||||||
| CAD $ millions | Reported | Effective tax rate | Reported | Effective tax rate | $ Change | Change in bps | |||||||||||||||||||||||||||||
| Income tax recovery | (13.4) | 42.0 | % | (11.7) | 40.2 | % | 1.7 | (180) | bps | ||||||||||||||||||||||||||
Income tax recovery was $13.4m for the second quarter ended September 27, 2026 compared to $11.7m for the second quarter ended September 28, 2025. For the second quarter ended September 27, 2026, the effective and statutory tax rates were 42.0% and 25.2%, respectively, compared to 40.2% and 25.3%, respectively, for the second quarter ended September 28, 2025. Given our global operations, the effective tax rate is impacted by our consolidated profit or loss, our profit or loss for tax purposes in each taxable jurisdiction, including the impact of amounts recorded for accounting purposes that are disregarded in the computation of income for tax purposes (such as a portion of share-based compensation expense and fair value remeasurement of the put option related to the Japan Joint Venture), and the statutory tax rate (taking account of relevant Pillar Two taxes) applicable in each jurisdiction.
Net Loss
Net loss from continuing operations for the second quarter ended September 27, 2026 was $18.5m, compared to net loss from continuing operations of $17.4m for the second quarter ended September 28, 2025, driven by the factors described above.
| Canada Goose Holdings Inc. | Page 17 of 43 | |||||||
RESULTS OF OPERATIONS
For the two quarters ended September 27, 2026 compared to the two quarters ended September 28, 2025
The following table summarizes results of operations and expresses the percentage relationship to revenue of certain financial statement captions.
| CAD $ millions (except share and per share data) | Two quarters ended | $ Change | % Change | ||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||
| Revenue | 389.9 | 362.9 | 27.0 | 7.4 | % | ||||||||||||||||||||||||
| Cost of sales | 133.3 | 131.7 | (1.6) | (1.2) | % | ||||||||||||||||||||||||
| Gross profit | 256.6 | 231.2 | 25.4 | 11.0 | % | ||||||||||||||||||||||||
| Gross margin | 65.8 | % | 63.7 | % | 210 | bps | |||||||||||||||||||||||
| SG&A expenses | 380.1 | 408.1 | 28.0 | 6.9 | % | ||||||||||||||||||||||||
| SG&A expenses as a % of revenue | 97.5 | % | 112.5 | % | 1,500 | bps | |||||||||||||||||||||||
| Operating loss | (123.5) | (176.9) | 53.4 | 30.2 | % | ||||||||||||||||||||||||
| Operating margin | (31.7) | % | (48.7) | % | 1,700 | bps | |||||||||||||||||||||||
| Net interest, finance and other costs | 31.4 | 16.9 | (14.5) | (85.8) | % | ||||||||||||||||||||||||
| Loss before income taxes | (154.9) | (193.8) | 38.9 | 20.1 | % | ||||||||||||||||||||||||
| Income tax recovery | (44.8) | (50.5) | (5.7) | (11.3) | % | ||||||||||||||||||||||||
| Effective tax rate | 28.9 | % | 26.1 | % | (280) | bps | |||||||||||||||||||||||
| Net loss from continuing operations | (110.1) | (143.3) | 33.2 | 23.2 | % | ||||||||||||||||||||||||
| Net (loss) income from discontinued operations | (9.2) | 0.4 | (9.6) | (2,400.0) | % | ||||||||||||||||||||||||
| Net loss | (119.3) | (142.9) | 23.6 | 16.5 | % | ||||||||||||||||||||||||
| Net loss attributable to non-controlling interest | (1.9) | (2.5) | 0.6 | 24.0 | % | ||||||||||||||||||||||||
| Net (loss) income attributable to shareholders of the Company | (117.4) | (140.4) | 23.0 | 16.4 | % | ||||||||||||||||||||||||
| Continuing operations | (108.2) | (140.8) | 32.6 | 23.2 | % | ||||||||||||||||||||||||
| Discontinued operations | (9.2) | 0.4 | (9.6) | (2,400.0) | % | ||||||||||||||||||||||||
| Weighted average number of shares outstanding | |||||||||||||||||||||||||||||
Basic & diluted1 | 97,170,754 | 96,991,610 | |||||||||||||||||||||||||||
| Loss per share attributable to shareholders of the Company | |||||||||||||||||||||||||||||
Basic & diluted1 | $ | (1.21) | $ | (1.45) | 0.24 | 16.6 | % | ||||||||||||||||||||||
| Continuing operations | $ | (1.11) | $ | (1.45) | 0.34 | 23.4 | % | ||||||||||||||||||||||
| Discontinued operations | $ | (0.10) | $ | — | (0.10) | — | % | ||||||||||||||||||||||
1Subordinate voting shares issuable on the exercise of stock options are not treated as dilutive if including them would decrease the loss per share, or if the average daily closing share price for the period was lower than the exercise price. Accordingly, for the two quarters ended September 27, 2026, 2,404,688 potentially dilutive shares were excluded from the calculation of diluted loss per share because their effect was anti-dilutive (two quarters ended September 28, 2025 - 1,791,337 shares).
| Canada Goose Holdings Inc. | Page 18 of 43 | |||||||
Revenue
| Two quarters ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | As reported | Foreign exchange impact | In constant currency1 | As reported | In constant currency1 | ||||||||||||||||||||||||||||||||||
| DTC | 214.1 | 204.0 | 10.1 | (4.1) | 6.0 | 5.0 | % | 2.9 | % | ||||||||||||||||||||||||||||||||
| Wholesale | 155.2 | 137.1 | 18.1 | (0.2) | 17.9 | 13.2 | % | 13.1 | % | ||||||||||||||||||||||||||||||||
| Other | 20.6 | 21.8 | (1.2) | — | (1.2) | (5.5) | % | (5.5) | % | ||||||||||||||||||||||||||||||||
| Total revenue | 389.9 | 362.9 | 27.0 | (4.3) | 22.7 | 7.4 | % | 6.3 | % | ||||||||||||||||||||||||||||||||
1Constant currency revenue is a non-IFRS financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of this measure.
Revenue by geography
| Two quarters ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | As reported | Foreign exchange impact | In constant currency3 | As reported | In constant currency3 | ||||||||||||||||||||||||||||||||||
| Canada | 74.1 | 69.4 | 4.7 | — | 4.7 | 6.8 | % | 6.8 | % | ||||||||||||||||||||||||||||||||
| United States | 79.3 | 78.0 | 1.3 | (0.9) | 0.4 | 1.7 | % | 0.5 | % | ||||||||||||||||||||||||||||||||
| North America | 153.4 | 147.4 | 6.0 | (0.9) | 5.1 | 4.1 | % | 3.5 | % | ||||||||||||||||||||||||||||||||
Greater China1 | 106.0 | 77.7 | 28.3 | (3.4) | 24.9 | 36.4 | % | 32.0 | % | ||||||||||||||||||||||||||||||||
Asia Pacific (excluding Greater China1) | 45.1 | 40.6 | 4.5 | 0.2 | 4.7 | 11.1 | % | 11.6 | % | ||||||||||||||||||||||||||||||||
| Asia Pacific | 151.1 | 118.3 | 32.8 | (3.2) | 29.6 | 27.7 | % | 25.0 | % | ||||||||||||||||||||||||||||||||
EMEA2 | 85.4 | 97.2 | (11.8) | (0.2) | (12.0) | (12.1) | % | (12.3) | % | ||||||||||||||||||||||||||||||||
| Total revenue | 389.9 | 362.9 | 27.0 | (4.3) | 22.7 | 7.4 | % | 6.3 | % | ||||||||||||||||||||||||||||||||
1Greater China comprises Mainland China, Hong Kong, Macau, and Taiwan.
2EMEA comprises Europe, the Middle East, Africa, and Latin America.
3Constant currency revenue is a non-IFRS financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of this measure.
Revenue for the two quarters ended September 27, 2026 was $389.9m, an increase of $27.0m, or 7.4%, from $362.9m for the two quarters ended September 28, 2025. On a constant currency1 basis, revenue increased by 6.3% for the two quarters ended September 27, 2026 compared to the two quarters ended September 28, 2025, reflecting the strength of the Chinese yuan and the United States dollar relative to the Canadian dollar in the current period.
1Constant currency revenue is a non-IFRS financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of this measure.
| Canada Goose Holdings Inc. | Page 19 of 43 | |||||||
DTC
Revenue from our DTC segment for the two quarters ended September 27, 2026 was $214.1m compared to $204.0m, for the two quarters ended September 28, 2025. The increase of $10.1m, or 5.0%, was attributable largely to:
•Retail expansion with six new directly operated permanent stores during the two quarters of fiscal 2027, and 12 new directly operated permanent store openings in the prior year running for the full two quarters of fiscal 2027.
•Partially offset by DTC comparable sales decline1 of 5.9%, primarily driven by lower comparable store sales, partially offset by strong e-Commerce growth across all geographies, except EMEA. DTC comparable sales decline was led by EMEA with a decline of 24.0%, followed by North America with a decline of 3.0% and Asia Pacific experiencing a decline of 2.4%.
1DTC comparable sales (decline) growth is a supplementary financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of this measure.
Wholesale
Revenue from our Wholesale segment for the two quarters ended September 27, 2026 was $155.2m, compared to $137.1m for the two quarters ended September 28, 2025. The increase of $18.1m, or 13.2%, was primarily driven by growth in the Asia Pacific order book and higher re-order levels and increased revenue from Travel Retail.
Other
Revenue from our Other segment was $20.6m for the two quarters ended September 27, 2026, compared to $21.8m for the two quarters ended September 28, 2025. The decrease of $1.2m, or 5.5%, was attributable to lower revenue from friends and family events and lower manufacturing revenue from our knitwear facility in Romania.
Gross Profit
| Two quarters ended | |||||||||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||||||||
| CAD $ millions | Reported | Gross margin | Reported | Gross margin | $ Change | Change in bps | |||||||||||||||||||||||||||||
| Gross profit | 256.6 | 65.8 | % | 231.2 | 63.7 | % | 25.4 | 210 | bps | ||||||||||||||||||||||||||
Gross profit and gross margin for the two quarters ended September 27, 2026 were $256.6m and 65.8%, respectively, compared to $231.2m and 63.7%, respectively, for the two quarters ended September 28, 2025. The increase in gross profit of $25.4m was attributable to higher revenue as noted above and margin expansion. Gross margin in the current period has been favourably impacted by favourable product mix, favourability in freight and duty, and pricing. Cost variances had a limited impact on gross margin.
| Canada Goose Holdings Inc. | Page 20 of 43 | |||||||
SG&A Expenses
| Two quarters ended | |||||||||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||||||||
| CAD $ millions | Reported | % of revenue | Reported | % of revenue | $ Change | Change in bps | |||||||||||||||||||||||||||||
| SG&A expenses | 380.1 | 97.5 | % | 408.1 | 112.5 | % | 28.0 | 1,500 | bps | ||||||||||||||||||||||||||
SG&A expenses were $380.1m for the two quarters ended September 27, 2026, compared to $408.1m for the two quarters ended September 28, 2025. SG&A expenses are comprised of:
•$203.3m of costs from our operating segments for the two quarters ended September 27, 2026 compared to $199.6m for the two quarters ended September 28, 2025; and
•Corporate expenses of $176.8m for the two quarters ended September 27, 2026 compared to $208.5m for the two quarters ended September 28, 2025.
Within operating segments and corporate expenses, the Company incurs marketing expenses. These expenses are primarily focused on building brand awareness, with region-specific allocation across channels and selective use of paid media.
•$55.1m of marketing expenses were incurred in the two quarters ended September 27, 2026, compared to $52.9m in the two quarters ended September 28, 2025.
◦The increase of $2.2m was primarily driven by the timing of marketing expenditures, with spending shifted to later in the year from Q1 to better align with the peak selling season.
The decrease of $28.0m or 6.9% was attributable to:
•A decrease of $27.4m in costs related to corporate expenses, driven by:
◦$43.8m for the financial award for the arbitration proceeding instituted in fiscal 2024 between the Company and a former supplier of the Company; and
◦$1.6m of higher foreign exchange gains.
◦Partially offset by investments in upper-funnel marketing and brand awareness initiatives, increased investment in personnel and technology.
•An increase of $0.1m in costs related to our operating segments, driven by:
◦$12.6m increase in costs attributable to expansion from new stores and prior year store openings, which have been open for the full duration of fiscal 2027, including lease costs and store costs contractually variable to revenue.
◦Partially offsetting this increase was an $11.9m decrease in costs related to the Earn-Out, which was recognized in the prior year, subsequently settled, and did not recur in fiscal 2027.
SG&A expenses as a percentage of revenue decreased by 1,500 bps to 97.5% in the two quarters ended September 27, 2026, compared to 112.5% for the two quarters ended September 28, 2025.
| Canada Goose Holdings Inc. | Page 21 of 43 | |||||||
Operating Loss and Operating Margin
| Two quarters ended | |||||||||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||||||||
| CAD $ millions | Reported | Operating margin | Reported | Operating margin | $ Change | Change in bps | |||||||||||||||||||||||||||||
| DTC | (21.1) | (9.9) | % | (19.1) | (9.4) | % | (2.0) | (50) | bps | ||||||||||||||||||||||||||
| Wholesale | 70.2 | 45.2 | % | 56.1 | 40.9 | % | 14.1 | 430 | bps | ||||||||||||||||||||||||||
| Other | 4.2 | 20.4 | % | (5.4) | (24.8) | % | 9.6 | 4,520 | bps | ||||||||||||||||||||||||||
Total segment operating income1 | 53.3 | 31.6 | 21.7 | ||||||||||||||||||||||||||||||||
| Two quarters ended | |||||||||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||||||||
| CAD $ millions | Reported | Operating margin | Reported | Operating margin | $ Change | Change in bps | |||||||||||||||||||||||||||||
Total segment operating income1 | 53.3 | 31.6 | 21.7 | ||||||||||||||||||||||||||||||||
| Corporate expenses | (176.8) | (208.5) | 31.7 | ||||||||||||||||||||||||||||||||
| Total operating loss | (123.5) | (31.7) | % | (176.9) | (48.7) | % | 53.4 | 1,700 | bps | ||||||||||||||||||||||||||
1Total segment operating income is a non-IFRS financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of this measure.
For the two quarters ended September 27, 2026, operating loss and operating margin were $123.5m and (31.7)%, respectively, compared to operating loss and operating margin of $176.9m and (48.7)% for the two quarters ended September 28, 2025. The decrease in operating loss of $53.4m was attributable to lower SG&A costs and higher gross profit as noted above. The increase in operating margin of 1,700 bps was the result of lower operating costs and gross margin expansion.
DTC
DTC segment operating loss and operating margin were $21.1m and (9.9)%, respectively, for the two quarters ended September 27, 2026. This is compared to operating loss and operating margin of $19.1m and (9.4)%, respectively, for the two quarters ended September 28, 2025. The increase in operating loss of $2.0m was attributable to higher operating costs, partially offset by improved revenue and gross profit.
The decrease in operating margin of (50) bps was attributable to:
•Gross margin - favourably increased by 140 bps to 72.8% in the two quarters ended September 27, 2026, compared to 71.4% for the two quarters ended September 28, 2025. The increase in gross margin was mainly driven by product mix, pricing and favourability in freight and duty costs, partially offset by channel mix and unfavourable cost variances.
| Canada Goose Holdings Inc. | Page 22 of 43 | |||||||
•SG&A expenses as a percentage of revenue - unfavourably increased by (190) bps to 82.7% for the two quarters ended September 27, 2026, compared to 80.8% for the two quarters ended September 28, 2025. This was driven by DTC comparable sales decline1, which negatively impacted our operating leverage, despite flat spending in our retail operations.
1DTC comparable sales (decline) growth is a supplementary financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of this measure.
Wholesale
Wholesale segment operating income and operating margin were $70.2m and 45.2%, respectively, for the two quarters ended September 27, 2026, compared to operating income and operating margin of $56.1m and 40.9%, respectively, for the two quarters ended September 28, 2025. The increase in operating income of $14.1m was attributable to higher gross profit and gross margin expansion.
The increase in operating margin of 430 bps was attributable to:
•Gross margin - favourably increased by 530 bps to 60.8% in the two quarters ended September 27, 2026, compared to 55.5% for the two quarters ended September 28, 2025. The increase in gross margin was driven by favourable product mix and cost variances from increased production efficiencies.
•SG&A expenses as a percentage of revenue - unfavourably increased by (100) bps to 15.6% for the two quarters ended September 27, 2026, compared to 14.6% for the two quarters ended September 28, 2025. The increase was primarily attributable to higher expenses related to logistics costs in EMEA and commissions in Asia Pacific.
Other
Other segment operating income was $4.2m for the two quarters ended September 27, 2026 compared to an operating loss of $5.4m for the two quarters ended September 28, 2025. The increase in operating income of $9.6m was primarily attributable to the Earn-Out in the comparative period that did not recur.
Net Interest, Finance and Other Costs
| Two quarters ended | |||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||
| CAD $ millions | Reported | Reported | $ Change | % Change | |||||||||||||||||||
| Net interest, finance and other costs | 31.4 | 16.9 | (14.5) | (85.8) | % | ||||||||||||||||||
Net interest, finance and other costs were $31.4m for the two quarters ended September 27, 2026 compared to $16.9m for the two quarters ended September 28, 2025. The increase of $14.5m was primarily attributable to $4.0m of unfavourable foreign exchange fluctuations related to the USD-denominated term loan facility, net of hedging impacts, a $10.3m increase in interest expense and the write-off of deferred financing costs associated with our term loan facility, driven by the Fiscal 2027 Amendment to Term Loan (as defined below), and $3.6m of higher interest expense on lease liabilities. These increases were partially offset by a $2.4m net decrease in the fair value remeasurement of the put option and contingent consideration related to the Japan Joint Venture and a $0.9m decrease in interest income and other costs.
| Canada Goose Holdings Inc. | Page 23 of 43 | |||||||
Income Taxes
| Two quarters ended | |||||||||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||||||||
| CAD $ millions | Reported | Effective tax rate | Reported | Effective tax rate | $ Change | Change in bps | |||||||||||||||||||||||||||||
| Income tax recovery | (44.8) | 28.9 | % | (50.5) | 26.1 | % | (5.7) | (280) | bps | ||||||||||||||||||||||||||
Income tax recovery was $44.8m for the two quarters ended September 27, 2026, compared to $50.5m for the two quarters ended September 28, 2025. For the two quarters ended September 27, 2026, the effective and statutory tax rates were 28.9% and 25.2%, respectively, compared to 26.1% and 25.3% for the two quarters ended September 28, 2025, respectively. Given our global operations, the effective tax rate is impacted by our consolidated profit or loss, our profit or loss for tax purposes in each taxable jurisdiction, including the impact of amounts recorded for accounting purposes that are disregarded in the computation of income for tax purposes (such as a portion of share-based compensation expense and fair value remeasurement of the put option related to the Japan Joint Venture), and the statutory tax rate (taking account of relevant Pillar Two taxes) applicable in each jurisdiction.
Net Loss
Net loss from continuing operations for the two quarters ended September 27, 2026 was $110.1m, compared to net loss from continuing operations of $143.3m for the two quarters ended September 28, 2025, driven by the factors described above.
| Canada Goose Holdings Inc. | Page 24 of 43 | |||||||
Quarterly Financial Information
Unless otherwise noted, the below summary of selected financial information for each of the eight most recently completed quarters, reflects continuing operations, with amounts attributable to discontinued operations in connection with the Baffin Sale excluded.
| CAD $ millions (except per share data) | Fiscal 2027 | Fiscal 2026 | Fiscal 2025 | |||||||||||||||||||||||||||||
| Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | |||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||||
| DTC | 129.6 | 84.5 | 359.8 | 587.6 | 126.2 | 77.8 | 312.6 | 514.5 | ||||||||||||||||||||||||
| Wholesale | 128.2 | 27.0 | 45.3 | 78.6 | 122.6 | 14.5 | 27.7 | 66.7 | ||||||||||||||||||||||||
| Other | 16.2 | 4.4 | 42.5 | 15.2 | 10.0 | 11.8 | 38.8 | 14.3 | ||||||||||||||||||||||||
| Total | 274.0 | 115.9 | 447.6 | 681.4 | 258.8 | 104.1 | 379.1 | 595.5 | ||||||||||||||||||||||||
| % of fiscal year revenue | — | % | — | % | 30.0 | % | 45.7 | % | 17.3 | % | 7.0 | % | 28.8 | % | 45.3 | % | ||||||||||||||||
| Net (loss) income from continuing operations attributable to shareholders of the Company | (18.8) | (89.4) | 28.5 | 133.8 | (15.2) | (125.6) | 26.6 | 141.7 | ||||||||||||||||||||||||
| (Loss) earnings per share from continuing operations attributable to shareholders of the Company | ||||||||||||||||||||||||||||||||
| Basic | $ | (0.27) | $ | (0.92) | $ | 0.29 | $ | 1.38 | $ | (0.16) | $ | (1.29) | $ | 0.27 | $ | 1.46 | ||||||||||||||||
| Diluted | $ | (0.27) | $ | (0.92) | $ | 0.29 | $ | 1.35 | $ | (0.16) | $ | (1.29) | $ | 0.27 | $ | 1.44 | ||||||||||||||||
| Net (loss) income attributable to shareholders of the Company | (26.6) | (90.8) | 28.1 | 134.8 | (15.2) | (125.2) | 27.1 | 139.7 | ||||||||||||||||||||||||
| (Loss) earnings per share attributable to shareholders of the Company | ||||||||||||||||||||||||||||||||
| Basic | $ | (0.27) | $ | (0.93) | $ | 0.29 | $ | 1.39 | $ | (0.16) | $ | (1.29) | $ | 0.28 | $ | 1.44 | ||||||||||||||||
| Diluted | $ | (0.27) | $ | (0.93) | $ | 0.28 | $ | 1.36 | $ | (0.16) | $ | (1.29) | $ | 0.28 | $ | 1.42 | ||||||||||||||||
| Operating (loss) income | (21.6) | (101.9) | 65.5 | 198.8 | (17.6) | (159.3) | 55.6 | 206.3 | ||||||||||||||||||||||||
Adjusted EBIT1 | (21.6) | (101.9) | 65.5 | 202.4 | (14.2) | (107.0) | 60.3 | 207.2 | ||||||||||||||||||||||||
Adjusted net (loss) income per diluted share attributable to shareholders of the Company1 | $ | (0.20) | $ | (0.87) | $ | 0.32 | $ | 1.39 | $ | (1.07) | $ | (0.91) | $ | 0.32 | $ | 1.49 | ||||||||||||||||
1Adjusted EBIT and adjusted net (loss) income attributable to shareholders of the Company are non-IFRS financial measures, and adjusted net (loss) income per diluted share attributable to shareholders of the Company is a non-IFRS ratio. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of these measures and a reconciliation to the nearest IFRS Accounting Standards measure.
| Canada Goose Holdings Inc. | Page 25 of 43 | |||||||
Revenue is highest in our Wholesale segment in our second and third quarters as we fulfill wholesale customer orders in time for their Fall and Winter retail seasons, and, in our DTC segment, in the third and fourth quarters. Our net income is typically negative in the first quarter and negative or reduced in the fourth quarter as we invest ahead of our peak season. As part of our global DTC strategy, we have been streamlining our wholesale partnerships and shifting sales to our DTC channel. We expect that the portion of revenue in our Wholesale segment will represent a smaller proportion of total revenue as we execute our DTC strategy.
Revenue
Over the last eight quarters, revenue has been impacted by the following:
•introduction of new stores and timing of store openings;
•launch and expansion of international e-Commerce sites;
•timing and extent of demand generation activities;
•increased manufacturing flexibility with higher in-house production, which has an impact on the timing of wholesale order shipments and customer demand;
•timing of end-consumer purchasing in the DTC segment and the availability of new products;
•successful execution of our global pricing strategy, including varying levels of annual price increases on carry over products;
•shift in mix of revenue from Wholesale to DTC, which has impacted the seasonality of our financial performance;
•shift in geographic mix of sales to increase sales outside of Canada, where average unit retail pricing is generally higher;
•fluctuation of foreign currencies relative to the Canadian dollar; and
•extent of activities in Other revenue.
Net (Loss) Income
Over the last eight quarters, net (loss) income has been affected by the following factors:
•impact of the items affecting revenue, as discussed above;
•change in product mix, specifically growth of revenue in our newer product categories;
•increase and timing of our investment in brand, marketing, and administrative support as well as increased investment in property, plant, and equipment and intangible assets to support growth initiatives;
•increase in fixed SG&A costs associated with our business, particularly the headcount growth and premises costs associated with our expanding DTC channel, resulting in net losses in our seasonally low-revenue first and fourth quarters;
•impact of foreign exchange;
•fluctuations in average cost of borrowings to address growing net working capital requirements and higher seasonal borrowings in the first and second quarters of each fiscal year to address the seasonal nature of revenue;
| Canada Goose Holdings Inc. | Page 26 of 43 | |||||||
•pre-store opening costs incurred, timing of leases signed, and opening of stores;
•store impairment costs;
•costs of the financial award for the arbitration proceedings between the Company and the former supplier of the Company;
•costs of increased bad debt provisioning and recoveries relating to a Wholesale partner in the United States;
•impact of fair value remeasurement of the put option and contingent consideration and any amendments thereto, and costs associated with the Japan Joint Venture;
•the proportion of taxable income in non-Canadian jurisdictions and changes to rates and tax legislation in those jurisdictions;
•increased freight and duty costs, limitations on shipping and other disruptions in the transportation and shipping infrastructure;
•increased product costs due to cost inflation and interest rate fluctuations; and
•costs associated with the business combination resulting in the acquisition of Paola Confectii on November 1, 2023, including costs associated with the payment of the Earn-Out.
NON-IFRS FINANCIAL MEASURES AND OTHER SPECIFIED FINANCIAL MEASURES
The Company uses certain financial measures that are “non-IFRS financial measures”, including adjusted EBIT, adjusted EBITDA, adjusted net loss attributable to the shareholders of the Company, constant currency revenue, total segment operating loss, and net debt, certain financial measures that are “non-IFRS ratios”, including adjusted EBIT margin, adjusted net loss per basic and diluted share attributable to shareholders of the Company and net debt leverage, as well as DTC comparable sales (decline) growth and inventory turnover which are “supplementary financial measures”, in each case in this document and other documents. These financial measures are employed by the Company to measure its operating and economic performance and to assist in business decision-making, as well as providing key performance information to senior management. The Company believes that, in addition to conventional measures prepared in accordance with IFRS Accounting Standards, certain investors and analysts use this information to evaluate the Company’s operating and financial performance and its financial position. These financial measures are not defined under IFRS Accounting Standards, nor do they replace or supersede any standardized measure under IFRS Accounting Standards. Other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures.
| Canada Goose Holdings Inc. | Page 27 of 43 | |||||||
Unless otherwise noted, non-IFRS financial measures presented herein reflect continuing operations only, with amounts attributable to discontinued operations in connection with the Baffin Sale excluded from both current and comparative periods.
| Second quarter ended | Two quarters ended | ||||||||||||||||||||||||||||||||||||||||||||||
| CAD $ millions (except per share data) | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBIT | (21.6) | (14.2) | (123.5) | (121.2) | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBIT margin | (7.9) | % | (5.5) | % | (31.7) | % | (33.4) | % | |||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 17.2 | 17.0 | (49.2) | (59.2) | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted net loss attributable to shareholders of the Company | (19.3) | (13.3) | (104.4) | (101.9) | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted net loss per basic and diluted share attributable to shareholders of the Company | $ | (0.20) | $ | (0.14) | $ | (1.07) | $ | (1.05) | |||||||||||||||||||||||||||||||||||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | March 29, 2026 | ||||||||||||||
| Net debt | (781.9) | (707.1) | (383.2) | ||||||||||||||
Adjusted EBIT, adjusted EBIT margin, adjusted EBITDA, adjusted net loss attributable to shareholders of the Company, and adjusted net loss per basic and diluted share attributable to shareholders of the Company.
These measures exclude the impact of certain non-cash items and certain other adjustments related to events that are non-recurring or unusual in nature, that we believe are not otherwise reflective of our ongoing operations and/or that make comparisons of underlying financial performance between periods difficult. We use, and believe that certain investors and analysts use, this information to evaluate our core financial and operating performance for business planning purposes, as well as to analyze how our business operates in, or responds to, swings in economic cycles or to other events that impact the apparel industry.
Constant currency revenue
Constant currency revenue is calculated by translating the prior year reported amounts into comparable amounts using a single foreign exchange rate for each currency calculated based on the current period exchange rates. We use, and believe that certain investors and analysts use, this information to assess how our business and geographic segments performed excluding the effects of foreign currency exchange rate fluctuations. See “Results of Operations - Revenue” for a reconciliation of reported revenue and revenue on a constant currency basis.
Net debt and net debt leverage
We define net debt as cash less total borrowings and lease liabilities, and net debt leverage as the ratio of net debt to adjusted EBITDA, measured on a spot basis. We use, and believe that certain investors and analysts use, these non-IFRS financial measures and ratios to determine the Company’s financial leverage and ability to meet its debt obligations. See “Liquidity and Capital Resources - Indebtedness” below for a table providing the calculation of net debt and discussion of net debt leverage.
| Canada Goose Holdings Inc. | Page 28 of 43 | |||||||
DTC comparable sales (decline) growth
DTC comparable sales (decline) growth is a supplementary financial measure defined as a rate of growth/decline of sales on a constant currency basis from e-Commerce sites and stores which have been operating for one full year (12 successive fiscal months). The measure excludes store sales from both periods for the specific trading days when the stores were closed, whether those closures occurred in the current period or the comparative period. The DTC comparable sales (decline) growth metric we report may not be equivalent to similarly titled metrics reported by other companies.
Total Segment Operating (Loss) Income
Total segment operating (loss) income is a non-IFRS financial measure defined as revenue minus cost of goods sold and SG&A expenses directly related to the operating segment. The total segment operating (loss) income metric we report may not be equivalent to similarly titled metrics reported by other companies. See “Operating Loss and Operating Margin” discussion above for reconciliation.
Inventory Turnover
Inventory turnover is a supplementary financial measure defined as the ratio of rolling 12-month cost of goods sold to average inventory, calculated as the average inventory balances for the last five quarters. The measure is used to assess inventory management efficiency and the rate at which inventory is sold and replenished. The inventory turnover metric reported by the Company may not be equivalent to similarly titled measures presented by other companies.
The tables below reconcile net loss to adjusted EBIT, adjusted EBITDA, and adjusted net loss attributable to shareholders of the Company for the periods indicated. Adjusted EBIT margin is equal to adjusted EBIT for the period presented as a percentage of revenue for the same period.
| Second quarter ended | Two quarters ended | ||||||||||||||||||||||||||||||||||||||||||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Net loss | (26.3) | (17.4) | (119.3) | (142.9) | |||||||||||||||||||||||||||||||||||||||||||
| Net (loss) income from discontinued operations (a) | (7.8) | — | (9.2) | 0.4 | |||||||||||||||||||||||||||||||||||||||||||
| Net loss from continuing operations | (18.5) | (17.4) | (110.1) | (143.3) | |||||||||||||||||||||||||||||||||||||||||||
| Add (deduct) the impact of: | |||||||||||||||||||||||||||||||||||||||||||||||
| Income tax recovery | (13.4) | (11.7) | (44.8) | (50.5) | |||||||||||||||||||||||||||||||||||||||||||
| Net interest, finance and other costs | 10.3 | 11.5 | 31.4 | 16.9 | |||||||||||||||||||||||||||||||||||||||||||
| Operating loss | (21.6) | (17.6) | (123.5) | (176.9) | |||||||||||||||||||||||||||||||||||||||||||
| Arbitration award (b) | — | — | — | 43.8 | |||||||||||||||||||||||||||||||||||||||||||
| Paola Confectii Earn-Out costs (c) | — | 3.4 | — | 11.9 | |||||||||||||||||||||||||||||||||||||||||||
| Total adjustments | — | 3.4 | — | 55.7 | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBIT | (21.6) | (14.2) | (123.5) | (121.2) | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBIT margin | (7.9) | % | (5.5) | % | (31.7) | % | (33.4) | % | |||||||||||||||||||||||||||||||||||||||
| Canada Goose Holdings Inc. | Page 29 of 43 | |||||||
| Second quarter ended | Two quarters ended | ||||||||||||||||||||||||||||||||||||||||||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Net loss | (26.3) | (17.4) | (119.3) | (142.9) | |||||||||||||||||||||||||||||||||||||||||||
| Net (loss) income from discontinued operations (a) | (7.8) | — | (9.2) | 0.4 | |||||||||||||||||||||||||||||||||||||||||||
| Net loss from continuing operations | (18.5) | (17.4) | (110.1) | (143.3) | |||||||||||||||||||||||||||||||||||||||||||
| Add (deduct) the impact of: | |||||||||||||||||||||||||||||||||||||||||||||||
| Income tax recovery | (13.4) | (11.7) | (44.8) | (50.5) | |||||||||||||||||||||||||||||||||||||||||||
| Net interest, finance and other costs | 10.3 | 11.5 | 31.4 | 16.9 | |||||||||||||||||||||||||||||||||||||||||||
| Operating loss | (21.6) | (17.6) | (123.5) | (176.9) | |||||||||||||||||||||||||||||||||||||||||||
| Arbitration award (b) | — | — | — | 43.8 | |||||||||||||||||||||||||||||||||||||||||||
| Paola Confectii Earn-Out costs (c) | — | 3.4 | — | 11.9 | |||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization (d) | 38.8 | 31.2 | 74.3 | 62.0 | |||||||||||||||||||||||||||||||||||||||||||
| Total adjustments | 38.8 | 34.6 | 74.3 | 117.7 | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 17.2 | 17.0 | (49.2) | (59.2) | |||||||||||||||||||||||||||||||||||||||||||
| Canada Goose Holdings Inc. | Page 30 of 43 | |||||||
| Second quarter ended | Two quarters ended | ||||||||||||||||||||||||||||||||||||||||||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Net loss | (26.3) | (17.4) | (119.3) | (142.9) | |||||||||||||||||||||||||||||||||||||||||||
| Net (loss) income from discontinued operations (a) | (7.8) | — | (9.2) | 0.4 | |||||||||||||||||||||||||||||||||||||||||||
| Net loss from continuing operations | (18.5) | (17.4) | (110.1) | (143.3) | |||||||||||||||||||||||||||||||||||||||||||
| Add (deduct) the impact of: | |||||||||||||||||||||||||||||||||||||||||||||||
| Arbitration award (b) | — | — | — | 43.8 | |||||||||||||||||||||||||||||||||||||||||||
| Paola Confectii Earn-Out costs (c) | — | 3.4 | — | 11.9 | |||||||||||||||||||||||||||||||||||||||||||
| Japan Joint Venture remeasurement (gain) loss on contingent consideration and put option (e) | (1.1) | 1.1 | 1.2 | 2.1 | |||||||||||||||||||||||||||||||||||||||||||
| Unrealized foreign exchange (gain) loss on term loan facility (f) | (0.2) | 0.2 | 0.7 | (3.3) | |||||||||||||||||||||||||||||||||||||||||||
| Acceleration of unamortized costs on debt extinguishment (g) | — | — | 6.0 | — | |||||||||||||||||||||||||||||||||||||||||||
| (1.3) | 4.7 | 7.9 | 54.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Tax effect of adjustments | — | — | (1.6) | (12.0) | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted net loss | (19.8) | (12.7) | (103.8) | (100.8) | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted net income (loss) attributable to non-controlling interest (h) | 0.5 | (0.6) | (0.6) | (1.1) | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted net loss attributable to shareholders of the Company | (19.3) | (13.3) | (104.4) | (101.9) | |||||||||||||||||||||||||||||||||||||||||||
| Weighted average number of shares outstanding | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic & diluted | 97,027,585 | 97,069,513 | 97,170,754 | 96,991,610 | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted net loss per basic and diluted share attributable to shareholders of the Company | $ | (0.20) | $ | (0.14) | $ | (1.07) | $ | (1.05) | |||||||||||||||||||||||||||||||||||||||
(a)Net loss attributable to discontinued operations related to the Baffin Sale, which was completed on August 10, 2026.
(b)During the first quarter ended June 29, 2025, an arbitral decision was rendered in respect of an arbitration proceeding that took place in fiscal 2024 between the Company and a former supplier of the Company in connection with a previously announced commercial dispute relating to the termination of a contract in 2021. The arbitration resulted in an unfavourable judgment against the Company with financial compensation to be awarded to the former supplier. As a result, the Company was required to make a one-time payment to the former supplier of USD32.0m ($43.8m), inclusive of legal costs, which was recognized in SG&A expenses in the interim statements of loss and was paid to the former supplier during the second quarter of fiscal 2026.
(c)Value of the Earn-Out, which was recognized and settled in fiscal 2026, and did not recur in fiscal 2027.
| Canada Goose Holdings Inc. | Page 31 of 43 | |||||||
(d)Calculated as depreciation and amortization as determined in accordance with IFRS Accounting Standards. Depreciation and amortization includes depreciation on ROU assets under IFRS 16, Leases.
(e)Changes to the fair value remeasurement of the contingent consideration and put option liability, inclusive of translation gains and losses, related to the Japan Joint Venture. The Company recorded a gain of $1.1m and a loss of $1.2m, respectively, on the fair value remeasurement of the contingent consideration and put option during the second and two quarters ended September 27, 2026 (second and two quarters ended September 28, 2025 - losses of $1.1m and $2.1m, respectively). The gains and losses are included in net interest, finance and other costs within the interim statements of loss.
(f)Unrealized gains and losses on the translation of the term loan facility from USD to CAD, net of the effect of derivative transactions entered into to hedge a portion of the exposure to foreign currency exchange risk. These costs are included in net interest, finance and other costs within the interim statements of loss.
(g)The non-cash unamortized costs accelerated in connection with the debt extinguishment due to the Fiscal 2027 Amendment to Term Loan (as defined below).
(h)Calculated as net income (loss) attributable to non-controlling interest in the interim statements of loss of $0.5m and $(0.6)m for the second and two quarters ended September 27, 2026, respectively, related to the revaluation of the put option liability and contingent consideration associated with the non-controlling interest in the Japan Joint Venture (second and two quarters ended September 28, 2025 - net loss attributable to non-controlling interest of $(0.6)m and $(1.1)m, respectively).
| Canada Goose Holdings Inc. | Page 32 of 43 | |||||||
LIQUIDITY AND CAPITAL RESOURCES
Cash Flows
The following table summarizes the Company’s consolidated statement of cash flows for the second and two quarters ended September 27, 2026 compared to the second and two quarters ended September 28, 2025.
| Second quarter ended | Two quarters ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | $ Change | September 27, 2026 | September 28, 2025 | $ Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassified1 | Reclassified1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total cash (used in) from: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating activities | (97.0) | (115.1) | 18.1 | (286.1) | (258.7) | (27.4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investing activities | 2.8 | (10.4) | 13.2 | (1.9) | (10.9) | 9.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financing activities | (23.8) | 38.2 | (62.0) | (35.9) | 26.2 | (62.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effects of foreign currency exchange rate changes on cash | (1.8) | 1.0 | (2.8) | 2.8 | 3.2 | (0.4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Decrease in cash | (119.8) | (86.3) | (33.5) | (321.1) | (240.2) | (80.9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash, beginning of period | 206.9 | 180.5 | 26.4 | 408.2 | 334.4 | 73.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash, end of period | 87.1 | 94.2 | (7.1) | 87.1 | 94.2 | (7.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 Refer to the “Summary of Financial Performance” section above and “Note 2. Material accounting policy information” in our Interim Financial Statements for additional details regarding the reclassification. As a result, ($0.2m) and $0.6m were reclassified from cash used in investing activities to cash used in operating activities for the second and two quarters ended September 28, 2025, respectively.
Cash Requirements
Our primary need for liquidity is to fund net working capital, capital expenditures including new stores, general corporate requirements of our business and debt services. Our primary source of liquidity to meet our cash requirements is cash generated from operating activities over our annual operating cycle. We also utilize the Mainland China credit facilities, the Japan credit facility, and the revolving credit facility to provide short-term liquidity and to have funds available for net working capital. Our ability to fund our operations, invest in planned capital expenditures, meet debt obligations, and repay or refinance indebtedness depends on our future operating performance and cash flows, which are subject to, but not limited to, prevailing economic, financial, and business conditions, some of which are beyond our control. Cash generated from operating activities is significantly impacted by the seasonality of our business. Historically, cash flows from operating activities have been highest in the third and fourth fiscal quarters of the
| Canada Goose Holdings Inc. | Page 33 of 43 | |||||||
fiscal year due to revenue from the DTC channel and the collection of receivables from wholesale revenue recognized earlier in the year.
As at September 27, 2026, total inventory was $496.6m, compared to $460.7m as at September 28, 2025. This increase of $35.9m was driven by higher finished goods due to greater anticipated sales unit demand, expanded product assortments, increased product newness and a larger wholesale order book, as well as an increase in raw materials and work in progress ahead of our peak selling season.
As at September 27, 2026, the increase in total inventory compared to March 29, 2026 of $110.3m was attributable to planned higher finished goods inventory, due to the drivers described above.
We continue to monitor the levels of inventory in each of our sales channels and across geographic regions and intend to continue to align inventory with demand that we forecast in each region.
Cash flows used in operating activities
Cash flows used in operating activities were $97.0m for the second quarter ended September 27, 2026, compared to $115.1m for the second quarter ended September 28, 2025. The decrease in cash flows used in operating activities of $18.1m was primarily due to the absence of the one-time financial compensation payment made in the prior period to a former supplier of the Company pursuant to an arbitration matter, as described below, partially offset by less favourable working capital movements, reflecting a higher investment in inventory and lower contributions from accounts payable and accrued liabilities compared to the prior period.
Cash flows used in operating activities were $286.1m for the two quarters ended September 27, 2026 compared to $258.7m for the two quarters ended September 28, 2025. The increase in cash flows used in operating activities of $27.4m was primarily driven by less favourable working capital movements, reflecting a higher investment in inventory and lower contributions from accounts payable and accrued liabilities compared to the prior period.
Cash flows from (used in) investing activities
Cash flows from investing activities were $2.8m for the second quarter ended September 27, 2026 compared to cash flows used in investing activities of $10.4m for the second quarter ended September 28, 2025. The $13.2m improvement was primarily due to cash proceeds of $15.1m received in connection with the Baffin Sale.
Cash flows used in investing activities were $1.9m for the two quarters ended September 27, 2026 compared to $10.9m for the two quarters ended September 28, 2025. The decrease in cash flows used in investing activities of $9.0m was primarily due to cash proceeds of $15.1m received in connection with the Baffin Sale, partially offset by higher capital expenditures related to upcoming and newly opened retail stores.
| Canada Goose Holdings Inc. | Page 34 of 43 | |||||||
Cash flows (used in) from financing activities
Cash flows used in financing activities were $23.8m for the second quarter ended September 27, 2026 compared to cash flows from financing activities of $38.2m for the second quarter ended September 28, 2025. The $62.0m change primarily reflected lower borrowings in the current period, including $8.0m under the revolving credit facility, $9.9m under the Mainland China credit facilities, $2.6m under the Japan credit facility and $18.8m under the term loan facility, as well as $22.5m of payments for the purchase and cancellation of subordinate voting shares under the NCIB, as described below.
Cash flows used in financing activities were $35.9m for the two quarters ended September 27, 2026 compared to cash flows from financing activities of $26.2m for the two quarters ended September 28, 2025. The $62.1m change primarily reflected lower borrowings in the current period, including $8.0m under the revolving credit facility, $9.4m under the Mainland China credit facilities and $18.7m under the term loan facility, as well as $22.5m of payments for the purchase and cancellation of subordinate voting shares under the NCIB, as described below.
Indebtedness
The following table presents our net debt1 as at September 27, 2026, September 28, 2025, and March 29, 2026.
| CAD $ millions | September 27, 2026 | September 28, 2025 | $ Change | March 29, 2026 | $ Change | ||||||||||||||||||||||||
| Cash | 87.1 | 94.2 | (7.1) | 408.2 | (321.1) | ||||||||||||||||||||||||
| Mainland China credit facilities | (4.0) | (13.4) | 9.4 | — | (4.0) | ||||||||||||||||||||||||
| Japan credit facility | (29.7) | (28.5) | (1.2) | — | (29.7) | ||||||||||||||||||||||||
| Revolving credit facility | — | (8.0) | 8.0 | — | — | ||||||||||||||||||||||||
| Term loan facility | (422.1) | (418.3) | (3.8) | (416.8) | (5.3) | ||||||||||||||||||||||||
| Lease liabilities | (413.2) | (333.1) | (80.1) | (374.6) | (38.6) | ||||||||||||||||||||||||
Net debt1 | (781.9) | (707.1) | (74.8) | (383.2) | (398.7) | ||||||||||||||||||||||||
1Net debt is a non-IFRS financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of this measure.
As at September 27, 2026, net debt1 was $781.9m compared to $707.1m as at September 28, 2025. The increase of $74.8m was driven by an increase in lease liabilities. Net debt leverage1 as at September 27, 2026 was 2.6 times adjusted EBITDA, compared to 1.9 times adjusted EBITDA as at September 28, 2025.
Net debt1 was $383.2m as at March 29, 2026. The increase of $398.7m as at September 27, 2026 was primarily driven by a decrease in cash of $321.1m.
1Net debt is a non-IFRS financial measure and net debt leverage is a non-IFRS ratio. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of these measures.
See “Note 11. Borrowings” in our Interim Financial Statements, “Note 17. Borrowings” in our Annual Financial Statements and “Factors Affecting Our Performance” and “Indebtedness” in the MD&A section of our Annual Report for detailed information on our debt facilities and seasonality of the business.
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Amendment to Term Loan Facility
On June 18, 2026, the Company entered into a repricing amendment to its existing term loan facility ("Fiscal 2027 Amendment to Term Loan"). Following the Fiscal 2027 Amendment to Term Loan, the applicable interest rate on SOFR borrowings was reduced by 50 basis points, from three-month Term SOFR +3.50% to three-month Term SOFR +3.00%, with interest payable quarterly in arrears.
The Company accounted for the Fiscal 2027 Amendment to Term Loan as a debt extinguishment due to a change in the syndicate lenders. As a result, deferred financing costs of $5.1m and original issue discount ("OID") of $0.9m related to the previous Term Loan were written off during the first quarter ended June 28, 2026 and recorded to net interest, finance and other costs in the interim statements of loss. The Company incurred transaction costs related to the Fiscal 2027 Amendment to Term Loan of $1.2m (USD0.8m) and an OID of $0.1m (USD0.1m), which are being amortized using the effective interest rate method.
As a result of the Fiscal 2027 Amendment to Term Loan, there were no changes to the aggregate principal amount of USD300.0m, the maturity date of August 23, 2032, the 0.50% SOFR floor, and the quarterly repayments on the principal amount of USD0.75m.
Normal Course Issuer Bid
Normal course issuer bid for Fiscal 2027
Subsequent to the quarter, the Company announced the renewal of its normal course issuer bid in relation to its subordinate voting shares (“Fiscal 2027 NCIB”). The Company is authorized to make purchases under the Fiscal 2027 NCIB from November 10, 2026 to November 9, 2027, in accordance with the requirements of the Toronto Stock Exchange (the “TSX”). The Board of Directors of the Company has authorized the Company to repurchase up to 3,156,958 subordinate voting shares, representing approximately 10.0% of the Public Float (as defined in the rules of the TSX) for the subordinate voting shares as at October 31, 2026. Purchases will be made by means of open market transactions on both the TSX and the New York Stock Exchange (the “NYSE”), or alternative trading systems, if eligible, and will conform to their regulations. In the event that the Company acquires subordinate voting shares by other means as a securities regulatory authority may permit, the purchase price of the subordinate voting shares may be different than the market price of the subordinate voting shares at the time of the acquisition. Purchases made under an issuer bid exemption order will be at a discount to the prevailing market price as per the terms of the order. Under the Fiscal 2027 NCIB, the Company may make, once per week, a block purchase (as defined in the rules of the TSX) at market price. The Company will otherwise be allowed to repurchase daily, through the facilities of the TSX, a maximum of 52,213 subordinate voting shares, representing 25% of the average daily trading volume, as calculated per the TSX rules for the six-month period starting on May 1, 2026 and ending on October 31, 2026.
In connection with the Fiscal 2027 NCIB, the Company also entered into an automatic share purchase plan (the “ASPP”) under which a designated broker may purchase subordinate voting shares under the Fiscal 2027 NCIB during the regularly scheduled quarterly trading blackout periods of the Company. The repurchases under the ASPP will be made in accordance with certain purchasing parameters and will continue until the earlier of the date on which the
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Company has purchased the maximum value of subordinate voting shares pursuant to the Fiscal 2027 NCIB and the expiry of the Fiscal 2027 NCIB.
Normal course issuer bid for Fiscal 2026
In November 2025, the Company renewed its normal course issuer bid in relation to its subordinate voting shares (“Fiscal 2026 NCIB”). Under the Fiscal 2026 NCIB, the Company is authorized to repurchase, during the twelve-month period ending November 9, 2026, up to 4,578,677 subordinate voting shares, representing approximately 10.0% of the Public Float (as defined in the rules of the TSX) for the subordinate voting shares as at October 27, 2025.
As at September 27, 2026, under the Fiscal 2026 NCIB, the Company purchased 2,092,572 subordinate voting shares for cancellation for total cash consideration of $23.7m. As at September 27, 2026, $1.3m of the total consideration remained payable to the designated broker under the Fiscal 2026 NCIB. The carrying amount of the subordinate voting shares repurchased was charged to share capital, with the remaining $18.4m charged to retained earnings.
As at September 27, 2026, the Company recognized a liability of $26.2m, representing the maximum amount payable to the designated broker under the Fiscal 2026 NCIB, with a corresponding charge to contributed surplus.
Subsequent to September 27, 2026, the Company purchased an additional 1,511,275 subordinate voting shares for cancellation for total cash consideration of $17.0m. As at the date of this MD&A, the remaining liability to the designated broker was $3.5m.
Contractual Obligations
Refer to “Contractual Obligations” in the MD&A section of our Annual Report and “Note 16. Financial risk management objectives and policies” of our Interim Financial Statements for a summary of the significant contractual obligations and other obligations of the Company. There have been no material changes since March 29, 2026.
OFF-BALANCE SHEET ARRANGEMENTS
The Company uses off-balance sheet arrangements including letters of credit and guarantees in connection with certain obligations including leases. Other than those items disclosed here and elsewhere in this MD&A and our financial statements, we did not have any material off-balance sheet arrangements or commitments as at September 27, 2026.
See “Note 16. Financial risk management objectives and policies” in the Interim Financial Statements and “Off-Balance Sheet Arrangements” in the MD&A section of our Annual Report for detailed information on our off-balance sheet arrangements.
OUTSTANDING SHARE CAPITAL
Canada Goose is a publicly traded company and the subordinate voting shares are listed on the New York Stock Exchange (NYSE: GOOS) and on the Toronto Stock Exchange (TSX: GOOS). As at October 28, 2026, there were 43,521,407 subordinate voting shares issued and outstanding, and 51,004,076 multiple voting shares issued and outstanding.
As at October 28, 2026, there were 6,842,865 options, 1,120,056 restricted share units, and 1,439,721 performance share units outstanding under the Company’s equity incentive plans, of which 3,803,929 options were vested as of such date. Each option is exercisable for one subordinate voting share. We expect that vested restricted share units and performance share
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units, including any additional performance share units, that vest based on performance achieved above target, will be paid at settlement through the issuance of one subordinate voting share per unit.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to certain market risks arising from transactions in the normal course of our business. Such risk is principally associated with credit risk, foreign exchange risk, and interest rate risk.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk arises from the possibility that certain parties will be unable to discharge their obligations. The Company manages its credit risk through a combination of third-party credit insurance and internal risk processes. A third-party insurer provides coverage on customers’ trade accounts receivable balances, with ongoing monitoring of customer creditworthiness. This insurance covers a specified portion of revenue, which may be less than the Company's total revenue with a given customer. Under the Company’s agreement with the insurer, approved credit limits are established for certain designated customers and up to 90% of their trade accounts receivable balances are insured. The policy includes a deductible of $0.1m and an annual coverage limit of $30.0m.
Moreover, within Canada Goose Japan, the Company has an agreement with a third-party that insures the risk of trade accounts receivable for certain designated customers for a maximum of JPY540.0m per annum subject to a deductible of 10% and applicable only to accounts with receivables over JPY0.1m.
Our exposure to credit risk has not significantly changed from the fiscal year ended March 29, 2026. See “Note 16. Financial Risk management objectives and policies” of our Interim Financial Statements and “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report for detailed information on the Company’s credit risk.
Foreign exchange risk
Foreign exchange risk in operating cash flows
Our Interim Financial Statements are expressed in Canadian dollars, but a substantial portion of the Company’s revenues, purchases, and expenses are denominated in foreign currencies, primarily U.S. dollars, euros, British pounds sterling, Swiss francs, Chinese yuan, Hong Kong dollars, Japanese yen, Taiwanese dollars, and Australian dollars. Net monetary assets denominated in currencies other than Canadian dollars that are held in entities with Canadian dollar functional currency are translated into Canadian dollars at the foreign currency exchange rate in effect at the balance sheet date. Revenues and expenses of all foreign operations are translated into Canadian dollars at the foreign currency exchange rates that approximate the rates in effect at the dates when such items are recognized. As a result, we are exposed to foreign currency translation gains and losses from our foreign operations into Canadian dollars. Appreciating foreign currencies relative to the Canadian dollar, to the extent they are not hedged, will positively impact operating income and net income by increasing our revenue, while depreciating foreign currencies relative to the Canadian dollar will have the opposite impact.
We are also exposed to fluctuations in the prices of U.S. dollar and euro denominated purchases as a result of changes in U.S. dollar or euro exchange rates. Most of our raw
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materials are sourced outside of Canada, primarily in U.S. dollars, and SG&A expenses are typically denominated in the currency of the country in which they are incurred. As a result, we are exposed to foreign currency exchange fluctuations on multiple currencies. A depreciating Canadian dollar relative to the U.S. dollar or euro will negatively impact operating income and net income by increasing our costs of raw materials, while an appreciating Canadian dollar relative to the U.S. dollar or euro will have the opposite impact.
As part of our risk management program, we have entered into foreign exchange derivative contracts to manage certain of our exposures to exchange rate fluctuations for future foreign currency transactions, which are intended to reduce the variability of our operating costs and future cash flows denominated in local currencies. Certain forward foreign exchange contracts were designated at inception and accounted for as cash flow hedges.
Foreign exchange risk on borrowings
We are further exposed to translation and transaction risks associated with foreign currency exchange fluctuations on foreign currency-denominated principal and interest amounts payable under the Mainland China credit facilities, the Japan credit facility, the revolving credit facility, and the term loan facility. To mitigate a portion of this exposure, the Company has entered into derivative contracts to hedge USD270.0m of the U.S. dollar denominated principal outstanding under the term loan facility.
In fiscal 2026, the Company entered into cross currency swap agreements terminating on December 31, 2030 to hedge a portion of its exposure to interest rate risk and foreign currency exchange risk. The cross currency swaps involve a periodic exchange of floating rate interest payments in USD, for fixed rate interest payments in CAD. At the hedge maturity date, there will be an exchange of notional principal amounts of USD270.0m for $373.6m. The cross currency swaps are designated and accounted for as cash flow hedges.
Following the Fiscal 2027 Amendment to Term Loan, the related cross currency swaps were amended to align with the revised interest rate terms of the underlying term loan facility, resulting in changes to both the floating-rate and fixed-rate legs of the swap. All other contractual terms of the derivatives and the associated hedging relationship remained unchanged.
See “Note 16. Financial risk management objectives and policies” in our Interim Financial Statements and the “Foreign Exchange Risk” section of the MD&A in our Annual Report for detailed information about the Company’s hedging program.
Interest rate risk
The Company is exposed to interest rate risk related to the effect of interest rate changes on the borrowings outstanding under the Mainland China credit facilities, Japan credit facility and the term loan facility, which currently bear interest rates of 2.42%, 1.47% and 6.76%, respectively.
Interest rate risk on the term loan facility is partially mitigated by cross currency swap hedges. Refer to "Foreign exchange risk on borrowings" above for more details.
Based on the closing balance of outstanding borrowings, a 1.00% increase in the closing interest rate for the two quarters ended September 27, 2026 would have increased interest expense on the Mainland China credit facilities, Japan credit facility and the term loan facility, before hedging, by less than $0.1m, $0.1m and $2.1m, respectively (two quarters ended September 28, 2025 - $0.1m, $0.1m and $2.1m, respectively). As at the two quarters ended September 27, 2026, the Company has repaid all amounts outstanding on its other borrowing
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facilities. In the comparative period, as at the two quarters ended September 28, 2025, along with the Mainland China credit facilities, Japan credit facility and the term loan facility, the Company also had outstanding borrowings under the Revolving credit facility, for which a 1.00% increase in the closing interest rate would have increased interest expense by less than $0.1m.
LITIGATION AND OTHER CONTINGENCIES
In the ordinary course of business, the Company may become subject to legal and regulatory proceedings and actions relating to its business, including matters involving its products, and contractual and employment relationships. The Company records contingent liabilities when a loss related to a claim is assessed to be probable and reasonably estimable.
During the first quarter ended June 29, 2025, an arbitral decision was rendered in respect of an arbitration that took place in fiscal 2024 between the Company and a former supplier of the Company in connection with a previously announced commercial dispute relating to the termination of a contract in 2021. The arbitration resulted in an unfavourable decision against the Company with financial compensation to be awarded to the former supplier.
Refer to “Note 23. Litigation and other contingencies” in our Annual Financial Statements for previously disclosed information on the matter.
As a result of the financial award under the arbitration, the Company was required to make a one-time payment to the former supplier of USD32.0m ($43.8m), inclusive of legal costs, which was recognized in SG&A expenses in the interim statements of loss. The award and legal costs were paid to the former supplier during the second quarter ended September 28, 2025.
RELATED PARTY TRANSACTIONS
The Company enters into transactions from time to time with its principal shareholders, as well as organizations affiliated with members of the Board of Directors and key management personnel. During the second and two quarters ended September 27, 2026, the Company recorded business service expenses with entities related to certain shareholders of $0.5m and $1.3m, respectively (second and two quarters ended September 28, 2025 - $0.8m and $1.6m, respectively) and revenue of $nil and less than $0.1m, respectively (second and two quarters ended September 28, 2025 - $nil and less than $0.1m, respectively). Balances owing to related parties as at September 27, 2026 totalled $0.3m (September 28, 2025 - $0.5m, March 29, 2026 - $0.4m), while balances due from related parties as at September 27, 2026 were less than $0.1m (September 28, 2025 - less than $0.1m, March 29, 2026 - less than $0.1m).
In connection with the Baffin Sale, certain lease arrangements with entities affiliated with the former controlling shareholder of Baffin Limited (the "Baffin Vendor"), together with the related obligations, were assigned to and assumed by the purchaser pursuant to a lease assignment agreement. Accordingly, the Company derecognized the related ROU asset and lease liability. The lease liability due to the Baffin Vendor for the leased premises was $1.2m as at September 28, 2025 and $0.6m as at March 29, 2026. During the second and two quarters ended September 27, 2026, the Company paid principal and interest on the lease liability and other operating costs to entities affiliated with the Baffin Vendor totalling $0.1m and $0.6m, respectively (second and two quarters ended September 28, 2025 - $0.5m and $0.9m, respectively). No amounts were owing to Baffin entities as at September 27, 2026, September 28, 2025, and March 29, 2026.
The joint venture between the Company and Sazaby League ("Japan Joint Venture") has lease liabilities due to the non-controlling shareholder, Sazaby League, for leased premises. Lease
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liabilities were $0.8m as at September 27, 2026 (September 28, 2025 - $1.2m, March 29, 2026 - $0.9m). During the second and two quarters ended September 27, 2026, the Company recorded transactions with Sazaby League relating to principal and interest on lease liabilities, royalty fees, and other operating costs totalling $0.7m and $2.0m, respectively (second and two quarters ended September 28, 2025 - $0.8m and $2.3m, respectively). Balances owing to Sazaby League as at September 27, 2026 were $0.3m (September 28, 2025 - $0.3m, March 29, 2026 - $0.3m).
During the second and two quarters ended September 27, 2026, the Japan Joint Venture sold inventory of $0.1m and $0.1m, respectively, to companies wholly owned by Sazaby League (second and two quarters ended September 28, 2025 - less than $0.1m and less than $0.1m, respectively). As at September 27, 2026, the Japan Joint Venture recognized a trade receivable of $0.1m from these companies (September 28, 2025 - less than $0.1m, March 29, 2026 - $0.1m).
In connection with the Paola Confectii business combination completed on November 1, 2023, the Company was required to make an Earn-Out payment to the controlling shareholders of Paola Confectii SRL ("PCML Vendors"), subject to their continued employment through November 1, 2025 and the achievement of certain performance conditions based on financial results. The Earn-Out was fully settled as at March 29, 2026.
A lease liability due to one of the PCML Vendors for leased premises was $1.1m as at September 27, 2026 (September 28, 2025 - $1.2m, March 29, 2026 - $1.1m). During the second and two quarters ended September 27, 2026, the Company made principal and interest payments on this lease liability totalling $0.1m and $0.1m, respectively (second and two quarters ended September 28, 2025 - $0.1m and $0.1m, respectively). No amounts were owing to one of the PCML Vendors as at September 27, 2026, September 28, 2025, and March 29, 2026.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Our Interim Financial Statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”). The preparation of our financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. See “Critical Accounting Policies and Estimates” in our MD&A within the Annual Report for detailed information.
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CHANGES IN ACCOUNTING POLICIES
Standards issued and adopted
In May 2024, the IASB issued amendments to IFRS 9, Financial Instruments and IFRS 7, Financial Instruments: Disclosure to clarify the timing of recognition and derecognition of financial assets and liabilities, the settlement of financial liabilities using an electronic payment system, and the assessment of contractual cash flow characteristics, classification and disclosure of financial assets with environmental, social, and governance linked or other contingent features. The IASB also amended the disclosure requirements for investments in equity instruments designated as fair value through other comprehensive income and added disclosure requirements for financial instruments with contingent features. These amendments are effective for annual reporting periods beginning on or after January 1, 2026. The Company adopted the standard beginning March 30, 2026 and has determined that there are no material impacts to the consolidated interim financial statements as a result of these amendments.
Standards issued and not yet adopted
Certain new standards, amendments, and interpretations to existing IFRS Accounting Standards have been published but are not yet effective and have not been adopted early by the Company. Management anticipates that pronouncements will be adopted in the Company’s accounting policy for the first period beginning after the effective date of the pronouncement. Information on new standards, amendments, and interpretations is provided below.
In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements, to improve reporting of financial performance. IFRS 18 replaces IAS 1, Presentation of Financial Statements. Many requirements from IAS 1 remain unchanged in IFRS 18. The standard sets out requirements on presentation and disclosures in financial statements. It introduces a defined structure for the statement of income composed of required categories and subtotals. The standard also introduces specific disclosure requirements for management-defined performance measures and a reconciliation between these measures and the most similar subtotal specified in IFRS Accounting Standards, which must be disclosed in a single note. IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027. Earlier application is permitted. The Company is currently evaluating the impact of the adoption of IFRS 18 on the consolidated financial statements.
INTERNAL CONTROL OVER FINANCIAL REPORTING
Disclosure Controls and Procedures
Management, including the CEO and CFO, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based on that evaluation, the CEO and CFO concluded that such disclosure controls and procedures were effective as of September 27, 2026, to provide reasonable assurance that the information required to be disclosed by the Company in reports it files is recorded, processed, summarized and reported within the appropriate time periods and is accumulated and communicated to management, as appropriate, to allow timely decisions regarding required disclosure.
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Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process designed by, or under the supervision of, the CEO and the CFO and effected by the Board of Directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS Accounting Standards. The Company’s internal control over financial reporting includes policies and procedures that:
•Pertain to the maintenance of records that accurately and fairly reflect, in reasonable detail, the transactions and dispositions of assets of the Company;
•Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS Accounting Standards and that the receipts and expenditures of the Company are made only in accordance with authorizations of management and directors; and
•Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the assets of the Company that could have a material effect on the consolidated financial statements.
There has been no change in the Company’s internal control over financial reporting during the two quarters ended September 27, 2026, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. Management determined that the Company’s internal control over financial reporting was effective as of September 27, 2026.
Limitations of Controls and Procedures
Due to its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Management's projections of any evaluation of the effectiveness of internal control over financial reporting as to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
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Exhibit 99.3
CERTIFICATION
I, Dani Reiss, certify that:
| 1. | I have reviewed the financial statements and MD&A for the second quarter ended September 27, 2026 of Canada Goose Holdings Inc.; | ||||
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||||
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report; | ||||
| 4. | The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and we have: | ||||
| a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
| b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
| c) | Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
| d) | Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the company’s most recent fiscal quarter (the company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and | |||||||
| 5. | The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent function): | ||||
| a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and | |||||||
| b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting. | |||||||
Date: November 5, 2026
By: | /s/ Dani Reiss | |||||||
| Dani Reiss | ||||||||
| Chairman and Chief Executive Officer | ||||||||
-2-
Exhibit 99.4
CERTIFICATION
I, Neil Bowden, certify that:
| 1. | I have reviewed the financial statements and MD&A for the second quarter ended September 27, 2026 of Canada Goose Holdings Inc.; | ||||
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||||
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report; | ||||
| 4. | The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and we have: | ||||
| a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
| b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
| c) | Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
| d) | Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the company’s most recent fiscal quarter (the company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and | |||||||
| 5. | The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent function): | ||||
| a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and | |||||||
| b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting. | |||||||
Date: November 5, 2026
By: | /s/ Neil Bowden | |||||||
| Neil Bowden | ||||||||
| Chief Financial Officer | ||||||||
-2-
Canada Goose Reports Second Quarter Fiscal 2027 Results
•Generated revenue of $274.0m, an increase of 5.9% (up 4.9% on a constant currency basis1) versus the prior year
•Delivered adjusted EBIT margin2 of (7.9)% compared with (5.5)% in the same period last year, primarily reflecting increased marketing investments ahead of the holiday season and our expanded store network, resulting in an adjusted EBIT2 loss and operating loss of $(21.6)m
•DTC comparable sales decline3 was 7.5% in the second quarter, reflecting lower store comparable sales, partially offset by positive e-commerce comparable sales growth in North America and Asia Pacific
•Maintained strong balance sheet and well-positioned inventory levels, with inventory turnover3 up 8% year-over-year at 1.0x sales
•Closed the sale of Baffin Limited, reflecting our continued focus on simplifying the business and on our key strategic priorities. As a result, the financial results are presented on a continuing basis, excluding Baffin discontinued operations, and prior periods are reclassified accordingly
Toronto – November 5, 2026 – Canada Goose Holdings Inc. (NYSE, TSX: GOOS) announced today financial results for the second quarter ended September 27, 2026 and reiterated its fiscal 2027 outlook. All amounts are in Canadian dollars unless otherwise indicated.
“Our second-quarter results demonstrate continued progress in building a stronger, more diversified Canada Goose,” said Dani Reiss, Chairman & CEO of Canada Goose. “We’re expanding our cultural relevance, building momentum across lifestyle categories, and strengthening the underlying economics of our business. As we enter our most important selling season, we’re confident in the strength of our brand, our product, and the opportunities ahead.”
Second Quarter Fiscal 2027 Business Highlights
In the second quarter, we advanced initiatives across product, brand, and channels that are strengthening our operating model and positioning the business for sustainable long-term growth.
•Expanded year-round relevance with Apparel, Rain wear and Wind wear delivering strong double-digit growth year-over-year, increasing their share of revenue within the product mix.
•Introduced our Fall/Winter 2026 collection, with stronger head-to-toe outfitting, refreshed core products, broader colour offerings, and new offerings.
•Expanded our cultural relevance while reinforcing our technical performance credentials through new partnerships with ARCH Motorcycle Racing, co-founded by Keanu Reeves and Gard Hollinger, marking our first venture into motorsport, and with Ewan McGregor, in his documentary series TRUE WIND, which features Canada Goose as its “Official Protective Gear Partner”, and showcases our Sea Mantra rainwear.
•Opened two net new stores, bringing the total permanent store count to 94 at the end of the second quarter of fiscal 2027.
1 Constant currency revenue is a non-IFRS financial measure. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for more information.
2 Adjusted EBIT, adjusted EBITDA, adjusted net loss attributable to shareholders of the Company, and net debt are non-IFRS financial measures, and adjusted EBIT margin, adjusted net loss per basic and diluted share attributable to the shareholders of the Company, and net debt leverage are non-IFRS financial ratios. Unless otherwise noted, these measures and ratios reflect continuing operations only and exclude amounts attributable to discontinued operations. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for more information.
3 DTC comparable sales (decline) growth and inventory turnover are supplementary financial measures. See “Non-IFRS Financial Measures and Other Specified Financial Measures” for a description of these measures.
1
•Closed the sale of Baffin Limited (“Baffin”) to L.P. Royer Inc. (“Baffin Sale”), reflecting our focus on simplifying the business and concentrating resources behind our highest-priority growth opportunities.
Second Quarter Financial Highlights4
Results from continuing operations following the sale of Baffin
All Year-Over-Year Comparisons Unless Otherwise Noted
▪Total revenue increased 5.9% to $274.0m, up 4.9% on a constant currency basis1.
•DTC revenue increased 2.7% to $129.6m, up 0.6% on a constant currency basis1 due to higher sales from non-comparable stores and e-Commerce. DTC comparable sales declined3 7.5% reflecting softer comparable store sales, particularly in EMEA, partially offset by strong e-commerce growth in North America and Asia Pacific.
•Wholesale revenue increased 4.6% on a reported and constant currency basis1 to $128.2m reflecting higher order book shipments, healthy in-season demand, and growth from Travel Retail.
•Other revenue increased 62.0% to $16.2m, or 63.0% on a constant currency basis1 due to increased revenue from friends and family activity compared to the same prior year period.
▪Gross profit increased 10.4% to $182.9m due to higher revenue and gross margin. Gross margin was 66.8% compared to 64.0% in the second quarter of fiscal 2026, reflecting favourable product mix, production efficiencies and lower freight and duty costs, partially offset by unfavourable channel mix.
▪Selling, general and administrative (SG&A) expenses were $204.5m, compared to $183.3m in the prior year period, primarily reflecting increased investment in upper-funnel marketing and brand awareness initiatives, as well as costs associated with our expanded store network.
▪Operating loss was $(21.6)m, compared to an operating loss of $(17.6)m in the prior year period, due to higher SG&A expenses, partially offset by higher gross profit.
▪Net loss attributable to shareholders was $(18.8)m, or $(0.19) per basic and diluted share, compared with a net loss attributable to shareholders of $(15.2)m, or $(0.16) per basic and diluted share in the prior year period.
▪Adjusted EBIT2 was $(21.6)m, compared to $(14.2)m in the prior year period. Adjusted EBIT margin2 was (7.9)%, compared to (5.5)% in the prior year period.
▪Adjusted net loss attributable to shareholders2 was $(19.3)m, or $(0.20) per basic and diluted share, compared with an adjusted net loss attributable to shareholders of $(13.3)m, or $(0.14) per basic and diluted share in the prior year period.
Balance Sheet Highlights
Inventory of $496.6m for the second quarter ended September 27, 2026 was up 8% year-over-year, primarily reflecting an expanded product assortment, lower than planned DTC sales, a larger wholesale order book, and planned production growth to support anticipated demand ahead of our peak season. Inventory turnover3 was 1.0x at the end of the second quarter of fiscal 2027, an 8% increase over the same prior year period.
The Company ended the second quarter of fiscal 2027 with net debt2 of $781.9m, compared to $707.1m at the end of the second quarter of fiscal 2026 due to an increase in lease liabilities.
During the second quarter of fiscal 2027, the Company repurchased 2,092,572 subordinate voting shares for a total cash consideration of $23.7m, ending the quarter with a cash balance of $87.1m, compared to $94.2m at the end of the second quarter of fiscal 2026.
Fiscal 2027 Outlook
This outlook constitutes forward-looking information within the meaning of applicable securities laws. The purpose of this outlook is to provide a description of management's expectations regarding the Company's annual financial performance and may not be appropriate for other purposes. Actual results could vary materially as a result of
4 Comparisons to second quarter ended September 28, 2025.
2
numerous factors, including certain risk factors, many of which are beyond the Company’s control. Please see “Cautionary Note Regarding Forward-Looking Statements" below for more information.
Based on our current visibility into the business and the progress of initiatives already underway, we reiterate our fiscal 2027 outlook as set forth below. Our outlook incorporates the expected impact of the Baffin Sale and reflects our current assessment of operating conditions, underlying demand trends, and the level of execution we believe is achievable.
For fiscal 2027, we expect:
•Revenue to increase by approximately low-single digit percentage compared to the prior year.
•Adjusted EBIT margin2 to be in the range of 11% to 12%.
Our outlook assumes:
•Revenue growth is driven by pricing actions already implemented, increased depth in our product assortment, a larger wholesale order book, and new store openings, partially offset by lower consumer demand relative to fiscal 2026, including softer traffic in key markets, reduced consumer confidence, and lower travel.
•Gross margin expands, reflecting the benefit of pricing actions and operational efficiencies embedded in fiscal 2026 production and favourable channel mix, partially offset by product mix, raw material inflation, and supply chain cost pressures from current disruptions.
•SG&A declines as a percentage of revenue, as we balance disciplined cost management with targeted investments across channels, marketing, and technology, driving operating leverage on a consolidated basis.
•U.S. tariffs announced on July 20, 2026 and effective as of August 22, 2026 to impact adjusted EBIT margin by approximately 100 basis points for fiscal 2027.
Renewal of Normal Course Issuer Bid
The Company further announced today that its renewed normal course issuer bid (the “NCIB”) will commence on November 10, 2026. The Toronto Stock Exchange (“TSX”) has approved purchases for cancellation of up to 3,156,958 subordinate voting shares of Canada Goose over the twelve-month period commencing on November 10, 2026 and ending no later than November 9, 2027. This represents 10% of the 31,569,580 subordinate voting shares comprising the public float (the “Public Float”) determined in accordance with TSX requirements as at October 31, 2026. As at October 31, 2026, there were 43,230,772 subordinate voting shares issued and outstanding.
Canada Goose currently believes that the purchase of the Company’s subordinate voting shares under the NCIB is an appropriate and desirable use of available excess cash on hand, as part of its broader capital allocation strategy.
The NCIB will be conducted through the facilities of the TSX and the New York Stock Exchange (“NYSE”) or alternative trading systems in Canada and the United States, if eligible, and will conform to their regulations. Subordinate voting shares will be acquired under the NCIB at the market price plus brokerage fees. Purchases under the NCIB will be made by means of open market transactions or such other means as a securities regulatory authority may permit. In the event that the Company acquires subordinate voting shares by other means as a securities regulatory authority may permit, the purchase price of the subordinate voting shares may be different than the market price of the subordinate voting shares at the time of the acquisition. Purchases made under an issuer bid exemption order will be at a discount to the prevailing market price as per the terms of the order. Furthermore, under the NCIB, Canada Goose may make, once per week, a block purchase (as such term is defined in the TSX Company Manual) at market price, in accordance with TSX rules. Canada Goose will otherwise be allowed to purchase daily, through the facilities of the TSX, a maximum of 52,213 subordinate voting shares representing 25% of the average daily trading volume of 208,852 subordinate voting shares, as calculated per the TSX rules for the six-month period starting on May 1, 2026 and ending on October 31, 2026.
In connection with the NCIB, the Company also re-entered into an automatic share purchase plan (“ASPP”) with the designated broker responsible for the NCIB, allowing for the purchase of subordinate voting shares under the NCIB at times when Canada Goose would ordinarily not be permitted to purchase its securities due to regulatory restrictions and customary self-imposed blackout periods. Pursuant to the ASPP, before entering into a blackout period, the Company may, but is not required to, instruct the designated broker to make purchases under the NCIB in accordance with certain purchasing parameters. Such purchases will be made by the designated broker based on such purchasing parameters, without further instructions by Canada Goose, in compliance with the rules of the TSX, applicable
3
securities laws and the terms of the ASPP. The ASPP has been pre-cleared by the TSX and will be implemented concurrently with the initiation of the NCIB.
Pursuant to exemptive relief granted by the Ontario Securities Commission (“OSC”) to the Company on January 24, 2025, Canada Goose is allowed to purchase up to 10% of its Public Float through the facilities of the NYSE and other U.S.-based trading systems as part of any NCIB implemented in the 36 months following the date of the decision, and will therefore not be limited on such trading platforms to purchasing 5% of its outstanding subordinate voting shares at the beginning of any 12-month period as Canadian securities laws would otherwise provide. A copy of the decision from the OSC has been filed under Canada Goose’s SEDAR+ profile at www.sedarplus.ca.
Under the Company’s existing NCIB for the 12-month period beginning on November 10, 2025 and ending on November 9, 2026, Canada Goose is authorized to repurchase up to 4,578,677 subordinate voting shares, or 10% of its Public Float as at October 27, 2025. As at October 31, 2026, the Company had repurchased 3,487,620 of its subordinate voting shares at weighted average purchase price per subordinate voting share of CAD$11.30 through the facilities of the TSX and the NYSE and alternative trading systems in Canada and the United States.
Conference Call Information
The Company will host the conference call at 8:30 a.m. EST on November 5, 2026. The conference call can be accessed by using the following link:https://events.q4inc.com/attendee/566276627. After registering, an email will be sent including dial-in details and a unique conference call pin required to join the live call. A live webcast of the conference call will also be available on the investor relations page of the Company's website at http://investor.canadagoose.com.
About Canada Goose
Canada Goose is dedicated to empowering discovery and pushing boundaries in design, functionality, and style. Inspired by our Canadian heritage, we craft high-performance outerwear, apparel, footwear, and accessories that elevate craftsmanship and embrace individuality. Rooted in resilience and driven by a pioneering spirit, we embolden explorers to thrive in all environments while preserving the planet they roam. For more information, visit www.canadagoose.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of applicable securities laws, including statements relating to our fiscal 2027 financial outlook, the related assumptions included herein including the expected impacts of the recently enacted U.S. duties and developments related thereto, the NCIB and the ASPP and the intended repurchase of subordinate voting shares of the Company thereunder, our business strategy and our expected operating performance and prospects. These forward-looking statements generally can be identified by the use of words such as “believe,” “could,” “continue,” “expect,” “estimate,” “may,” “potential,” “would,” “will,” and other words of similar meaning. Each forward-looking statement contained in this press release is subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the impact on our operations of the current global economic conditions and international trade environment and their evolution, the expected impacts of the recently enacted U.S. duties on our operations as further discussed herein, as well as the other risk factors that are discussed under “Cautionary Note Regarding Forward-Looking Statements” and “Factors Affecting Our Performance” in our Management’s Discussion and Analysis (“MD&A”) for the year ended March 29, 2026 and for the second quarter ended September 27, 2026, as well as under “Risk Factors” in our Annual Report on Form 20-F for the year ended March 29, 2026. You are also encouraged to read our filings with the SEC, available at www.sec.gov, and our filings with Canadian securities regulatory authorities available on SEDAR+ at www.sedarplus.ca for a discussion of these and other risks and uncertainties. Investors, potential investors, and others should give careful consideration to these risks and uncertainties. We caution investors not to rely on the forward-looking statements contained in this press release when making an investment decision in our securities.
Although we base the forward-looking statements contained in this press release on assumptions that we believe are reasonable, we caution readers that actual results and developments (including our results of operations, financial condition and liquidity, the achievement of our targets, goals and commitments, and the development of the industry in which we operate) may differ materially from those made in or suggested by the forward-looking statements contained in this press release. Additional impacts may arise that we are not aware of currently. The potential of such additional
4
impacts intensifies the business and operating risks which we face, and these should be considered when reading the forward-looking statements contained in this press release. In addition, even if results and developments are consistent with the forward-looking statements contained in this press release, those results and developments may not be indicative of results or developments in subsequent periods. As a result, any or all of our forward-looking statements in this press release may prove to be inaccurate. No forward-looking statement is a guarantee of future results. Moreover, we operate in a highly competitive and rapidly changing environment in which new risks often emerge. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements. You should read this press release and the documents that we reference herein completely and with the understanding that our actual future results may be materially different from what we expect. The forward-looking statements contained herein are made as of the date of this press release (or as of the date specifically indicated therein), and we do not assume any obligation to update any forward-looking statements except as required by applicable laws.
Investors: ir@canadagoose.com
Media: media@canadagoose.com
5
Condensed Consolidated Interim Statements of Loss
(in millions of Canadian dollars, except per share amounts) (unaudited)
| Second quarter ended | Two quarters ended | ||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||||||||
| Revenue | 274.0 | 258.8 | 389.9 | 362.9 | |||||||||||||||||||||||||
| Cost of sales | 91.1 | 93.1 | 133.3 | 131.7 | |||||||||||||||||||||||||
| Gross profit | 182.9 | 165.7 | 256.6 | 231.2 | |||||||||||||||||||||||||
| Selling, general & administrative expenses | 204.5 | 183.3 | 380.1 | 408.1 | |||||||||||||||||||||||||
| Operating loss | (21.6) | (17.6) | (123.5) | (176.9) | |||||||||||||||||||||||||
| Net interest, finance and other costs | 10.3 | 11.5 | 31.4 | 16.9 | |||||||||||||||||||||||||
| Loss before income taxes | (31.9) | (29.1) | (154.9) | (193.8) | |||||||||||||||||||||||||
| Income tax recovery | (13.4) | (11.7) | (44.8) | (50.5) | |||||||||||||||||||||||||
| Net loss from continuing operations | (18.5) | (17.4) | (110.1) | (143.3) | |||||||||||||||||||||||||
| Net (loss) income from discontinued operations | (7.8) | — | (9.2) | 0.4 | |||||||||||||||||||||||||
| Net loss | (26.3) | (17.4) | (119.3) | (142.9) | |||||||||||||||||||||||||
| Attributable to: | |||||||||||||||||||||||||||||
| Shareholders of the Company | |||||||||||||||||||||||||||||
| Continuing operations | (18.8) | (15.2) | (108.2) | (140.8) | |||||||||||||||||||||||||
| Discontinued operations | (7.8) | — | (9.2) | 0.4 | |||||||||||||||||||||||||
| Non-controlling interest | 0.3 | (2.2) | (1.9) | (2.5) | |||||||||||||||||||||||||
| Net Loss | (26.3) | (17.4) | (119.3) | (142.9) | |||||||||||||||||||||||||
| Loss per share attributable to shareholders of the Company | |||||||||||||||||||||||||||||
Basic & diluted1 | $ | (0.27) | $ | (0.16) | $ | (1.21) | $ | (1.45) | |||||||||||||||||||||
| Continuing operations | $ | (0.19) | $ | (0.16) | $ | (1.11) | $ | (1.45) | |||||||||||||||||||||
| Discontinued operations | $ | (0.08) | $ | — | $ | (0.10) | $ | — | |||||||||||||||||||||
1Subordinate voting shares issuable on the exercise of stock options are not treated as dilutive if including them would decrease the loss per share or if the average daily closing share price for the period was lower than the exercise price. Accordingly, for the second and two quarters ended September 27, 2026, 2,564,903 and 2,404,688 potentially dilutive shares, respectively, were excluded from the calculation of diluted loss per share because their effect was anti-dilutive (for the second and two quarters ended September 28, 2025 - 2,149,295 and 1,791,337 shares, respectively).
6
Condensed Consolidated Interim Statements of Comprehensive Loss
(in millions of Canadian dollars) (unaudited)
| Second quarter ended | Two quarters ended | ||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||||||||
| Net loss from continuing operations | (18.5) | (17.4) | (110.1) | (143.3) | |||||||||||||||||||||||||
| Other comprehensive income (loss) | |||||||||||||||||||||||||||||
| Items that will not be reclassified to earnings, net of tax: | |||||||||||||||||||||||||||||
| Actuarial loss on post-employment obligation | — | (0.2) | (0.2) | (0.2) | |||||||||||||||||||||||||
| Items that may be reclassified to earnings, net of tax: | |||||||||||||||||||||||||||||
| Cumulative translation adjustment (loss) gain | (4.1) | 8.5 | (0.6) | 21.6 | |||||||||||||||||||||||||
| Net gain (loss) on derivatives designated as cash flow hedges | 5.6 | (5.5) | 3.9 | (7.2) | |||||||||||||||||||||||||
| Reclassification of net gain on cash flow hedges to income | — | (0.6) | — | (0.5) | |||||||||||||||||||||||||
| Other comprehensive income from continuing operations | 1.5 | 2.2 | 3.1 | 13.7 | |||||||||||||||||||||||||
| Comprehensive loss from continuing operations | (17.0) | (15.2) | (107.0) | (129.6) | |||||||||||||||||||||||||
| Net (loss) income from discontinued operations | (7.8) | — | (9.2) | 0.4 | |||||||||||||||||||||||||
| Other comprehensive income from discontinued operations | — | — | — | — | |||||||||||||||||||||||||
| Comprehensive (loss) income from discontinued operations | (7.8) | — | (9.2) | 0.4 | |||||||||||||||||||||||||
| Comprehensive loss | (24.8) | (15.2) | (116.2) | (129.2) | |||||||||||||||||||||||||
| Attributable to: | |||||||||||||||||||||||||||||
| Shareholders of the Company | |||||||||||||||||||||||||||||
| Continuing operations | (17.8) | (12.8) | (105.8) | (126.7) | |||||||||||||||||||||||||
| Discontinued operations | (7.8) | — | (9.2) | 0.4 | |||||||||||||||||||||||||
| Non-controlling interest | 0.8 | (2.4) | (1.2) | (2.9) | |||||||||||||||||||||||||
| Comprehensive loss | (24.8) | (15.2) | (116.2) | (129.2) | |||||||||||||||||||||||||
7
Condensed Consolidated Interim Statements of Financial Position
(in millions of Canadian dollars) (unaudited)
| September 27, 2026 | September 28, 2025 | March 29, 2026 | |||||||||
| $ | $ | $ | |||||||||
| Reclassified | Reclassified | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash | 87.1 | 94.2 | 408.2 | ||||||||
| Trade receivables | 157.3 | 155.4 | 108.4 | ||||||||
| Inventories | 496.6 | 460.7 | 386.3 | ||||||||
| Income taxes receivable | 24.7 | 34.7 | 19.9 | ||||||||
| Other current assets | 56.2 | 70.4 | 45.6 | ||||||||
| Total current assets | 821.9 | 815.4 | 968.4 | ||||||||
| Deferred income taxes | 125.5 | 140.6 | 76.9 | ||||||||
| Property, plant and equipment | 164.4 | 161.8 | 161.5 | ||||||||
| Intangible assets | 123.9 | 129.9 | 127.9 | ||||||||
| Right-of-use assets | 363.8 | 285.9 | 332.1 | ||||||||
| Goodwill | 71.2 | 72.0 | 71.1 | ||||||||
| Other long-term assets | 41.9 | 1.2 | 15.3 | ||||||||
| Total assets | 1,712.6 | 1,606.8 | 1,753.2 | ||||||||
| Liabilities | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable and accrued liabilities | 245.6 | 228.2 | 214.0 | ||||||||
| Provisions | 45.0 | 43.3 | 45.8 | ||||||||
| Income taxes payable | 11.6 | 25.4 | 11.7 | ||||||||
| Short-term borrowings | 37.9 | 45.0 | 4.2 | ||||||||
| Current portion of lease liabilities | 92.6 | 89.3 | 92.8 | ||||||||
| Total current liabilities | 432.7 | 431.2 | 368.5 | ||||||||
| Provisions | 20.1 | 16.4 | 19.0 | ||||||||
| Deferred income taxes | 7.1 | 12.5 | 11.0 | ||||||||
Revolving Facility | — | 7.4 | — | ||||||||
Term Loan | 416.7 | 408.6 | 406.4 | ||||||||
| Lease liabilities | 320.6 | 243.8 | 281.8 | ||||||||
| Other long-term liabilities | 42.7 | 50.6 | 38.7 | ||||||||
| Total liabilities | 1,239.9 | 1,170.5 | 1,125.4 | ||||||||
| Equity | |||||||||||
| Equity attributable to shareholders of the Company | 454.5 | 423.8 | 608.4 | ||||||||
| Non-controlling interests | 18.2 | 12.5 | 19.4 | ||||||||
| Total equity | 472.7 | 436.3 | 627.8 | ||||||||
| Total liabilities and equity | 1,712.6 | 1,606.8 | 1,753.2 | ||||||||
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Condensed Consolidated Interim Statements of Cash Flows
(in millions of Canadian dollars) (unaudited)
| Second quarter ended | Two quarters ended | ||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||||||||
| Reclassified | Reclassified | ||||||||||||||||||||||||||||
| Operating activities | |||||||||||||||||||||||||||||
| Net loss from continuing operations | (18.5) | (17.4) | (110.1) | (143.3) | |||||||||||||||||||||||||
| Items not affecting cash: | |||||||||||||||||||||||||||||
| Depreciation and amortization | 38.8 | 31.2 | 74.3 | 62.0 | |||||||||||||||||||||||||
| Income tax recovery | (13.4) | (11.7) | (44.8) | (50.5) | |||||||||||||||||||||||||
| Interest expense | 12.4 | 10.4 | 25.7 | 14.8 | |||||||||||||||||||||||||
| Foreign exchange loss (gain) | 0.7 | 1.3 | (1.1) | (2.1) | |||||||||||||||||||||||||
| Acceleration of unamortized costs on debt extinguishment | — | — | 6.0 | — | |||||||||||||||||||||||||
| Loss (gain) on disposal of assets | — | 0.4 | (0.9) | 0.6 | |||||||||||||||||||||||||
| Share-based payment | 6.2 | 5.1 | 11.3 | 9.2 | |||||||||||||||||||||||||
| Remeasurement of put option | (1.7) | 1.9 | 0.1 | 3.0 | |||||||||||||||||||||||||
| Remeasurement of contingent consideration | (0.4) | (0.8) | (0.4) | (0.9) | |||||||||||||||||||||||||
| 24.1 | 20.4 | (39.9) | (107.2) | ||||||||||||||||||||||||||
| Changes in non-cash operating items | (104.2) | (77.2) | (208.8) | (106.6) | |||||||||||||||||||||||||
| Arbitration award payment | — | (43.8) | — | — | |||||||||||||||||||||||||
| Income taxes paid | (5.6) | (6.9) | (12.6) | (29.2) | |||||||||||||||||||||||||
| Interest paid | (10.7) | (8.4) | (23.8) | (16.9) | |||||||||||||||||||||||||
| Net cash (used in) from operating activities of discontinued operations | (0.6) | 0.8 | (1.0) | 1.2 | |||||||||||||||||||||||||
| Net cash used in operating activities | (97.0) | (115.1) | (286.1) | (258.7) | |||||||||||||||||||||||||
| Investing activities | |||||||||||||||||||||||||||||
| Purchase of property, plant and equipment | (12.2) | (9.9) | (16.9) | (10.3) | |||||||||||||||||||||||||
| Initial direct costs of right-of-use assets | — | (0.4) | — | (0.4) | |||||||||||||||||||||||||
| Baffin sale proceeds, net of transaction costs | 15.1 | — | 15.1 | — | |||||||||||||||||||||||||
| Net cash used in investing activities of discontinued operations | (0.1) | (0.1) | (0.1) | (0.2) | |||||||||||||||||||||||||
| Net cash from (used in) investing activities | 2.8 | (10.4) | (1.9) | (10.9) | |||||||||||||||||||||||||
| Financing activities | |||||||||||||||||||||||||||||
| Mainland China Facilities borrowings | 3.5 | 13.4 | 4.0 | 13.4 | |||||||||||||||||||||||||
| Japan Facility borrowings | 17.4 | 20.0 | 29.7 | 28.5 | |||||||||||||||||||||||||
| Revolving Facility borrowings | — | 8.0 | — | 8.0 | |||||||||||||||||||||||||
| Term Loan (repayments) borrowings | (1.1) | 17.7 | (2.1) | 16.6 | |||||||||||||||||||||||||
| Transaction costs on financing activities | — | (6.6) | (1.3) | (6.6) | |||||||||||||||||||||||||
| Normal course issuer bid purchase of subordinate voting shares | (22.5) | — | (22.5) | — | |||||||||||||||||||||||||
| Principal payments on lease liabilities | (21.0) | (20.7) | (43.4) | (39.8) | |||||||||||||||||||||||||
| Settlement of term loan derivative contracts | — | 6.6 | — | 6.6 | |||||||||||||||||||||||||
| Issuance of shares under LTIP | — | — | 0.1 | — | |||||||||||||||||||||||||
| Net cash used in financing activities of discontinued operations | (0.1) | (0.2) | (0.4) | (0.5) | |||||||||||||||||||||||||
| Net cash (used in) from financing activities | (23.8) | 38.2 | (35.9) | 26.2 | |||||||||||||||||||||||||
| Effects of foreign currency exchange rate changes on cash | (1.8) | 1.0 | 2.8 | 3.2 | |||||||||||||||||||||||||
| Decrease in cash | (119.8) | (86.3) | (321.1) | (240.2) | |||||||||||||||||||||||||
| Cash, beginning of period | 206.9 | 180.5 | 408.2 | 334.4 | |||||||||||||||||||||||||
| Cash, end of period | 87.1 | 94.2 | 87.1 | 94.2 | |||||||||||||||||||||||||
9
Non-IFRS Financial Measures and Other Specified Financial Measures
This press release includes references to certain non-IFRS financial measures such as adjusted EBIT, adjusted EBITDA, adjusted net loss attributable to shareholders of the Company, net debt, and constant currency revenue and certain non-IFRS ratios such as adjusted EBIT margin, adjusted net loss per basic and diluted share attributable to the shareholders of the Company and net debt leverage. These financial measures are employed by the Company to measure its operating and economic performance and to assist in business decision-making, as well as providing key performance information to senior management. The Company believes that, in addition to conventional measures prepared in accordance with IFRS Accounting Standards, certain investors and analysts use this information to evaluate the Company’s operating and financial performance. These financial measures are not defined under IFRS Accounting Standards nor do they replace or supersede any standardized measure under IFRS Accounting Standards. Other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures. Additional information, including definitions and reconciliations of non-IFRS financial measures to the nearest IFRS financial measure can be found in our MD&A for the second and two quarters ended September 27, 2026, under “Non-IFRS Financial Measures and Other Specified Financial Measures”. Such reconciliations can also be found in this press release under “Reconciliation of Non-IFRS Measures” below.
Unless otherwise noted, non-IFRS financial measures presented herein reflect continuing operations only, with amounts attributable to discontinued operations in connection with the Baffin Sale excluded from both current and comparative periods.
This press release also includes references to DTC comparable sales (decline) growth which is a supplementary financial measure defined as a rate of (decline) growth of sales on a constant currency basis from e-Commerce sites and stores which have been operating for one full year (12 successive fiscal months). The measure excludes store sales from both periods for the specific trading days when the stores were closed, whether those closures occurred in the current period or the comparative period. The DTC comparable sales (decline) growth metric reported by the Company may not be equivalent to similarly titled metrics reported by other companies.
This press release also includes references to inventory turnover which is a supplementary financial measure defined as the ratio of rolling 12-month cost of goods sold to average inventory, calculated as the average inventory balances for the last five quarters. The measure is used to assess inventory management efficiency and the rate at which inventory is sold and replenished. The inventory turnover metric reported by the Company may not be equivalent to similarly titled measures presented by other companies.
Reconciliation of Non-IFRS Measures
The tables below reconcile net loss to adjusted EBIT, adjusted EBITDA, adjusted net loss attributable to shareholders of the Company for the periods indicated, constant currency revenue to revenue across segments and geographies, and net debt for purposes of presenting its calculation.
| Second quarter ended | Two quarters ended | |||||||||||||||||||||||||||||||||||||||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||||||||||||||
| Net loss | (26.3) | (17.4) | (119.3) | (142.9) | ||||||||||||||||||||||||||||||||||||||||
| Net (loss) income from discontinued operations (a) | (7.8) | — | (9.2) | 0.4 | ||||||||||||||||||||||||||||||||||||||||
| Net loss from continuing operations | (18.5) | (17.4) | (110.1) | (143.3) | ||||||||||||||||||||||||||||||||||||||||
| Add (deduct) the impact of: | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax recovery | (13.4) | (11.7) | (44.8) | (50.5) | ||||||||||||||||||||||||||||||||||||||||
| Net interest, finance and other costs | 10.3 | 11.5 | 31.4 | 16.9 | ||||||||||||||||||||||||||||||||||||||||
| Operating loss | (21.6) | (17.6) | (123.5) | (176.9) | ||||||||||||||||||||||||||||||||||||||||
| Arbitration award (b) | — | — | — | 43.8 | ||||||||||||||||||||||||||||||||||||||||
| Paola Confectii Earn-Out costs (c) | — | 3.4 | — | 11.9 | ||||||||||||||||||||||||||||||||||||||||
| Total adjustments | — | 3.4 | — | 55.7 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted EBIT | (21.6) | (14.2) | (123.5) | (121.2) | ||||||||||||||||||||||||||||||||||||||||
| Adjusted EBIT margin | (7.9) | % | (5.5) | % | (31.7) | % | (33.4) | % | ||||||||||||||||||||||||||||||||||||
10
| Second quarter ended | Two quarters ended | ||||||||||||||||||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||||||||
| Net loss | (26.3) | (17.4) | (119.3) | (142.9) | |||||||||||||||||||
| Net (loss) income from discontinued operations (a) | (7.8) | — | (9.2) | 0.4 | |||||||||||||||||||
| Net loss from continuing operations | (18.5) | (17.4) | (110.1) | (143.3) | |||||||||||||||||||
| Add (deduct) the impact of: | |||||||||||||||||||||||
| Income tax recovery | (13.4) | (11.7) | (44.8) | (50.5) | |||||||||||||||||||
| Net interest, finance and other costs | 10.3 | 11.5 | 31.4 | 16.9 | |||||||||||||||||||
| Operating loss | (21.6) | (17.6) | (123.5) | (176.9) | |||||||||||||||||||
| Arbitration award (b) | — | — | — | 43.8 | |||||||||||||||||||
| Paola Confectii Earn-Out costs (c) | — | 3.4 | — | 11.9 | |||||||||||||||||||
| Depreciation and amortization (d) | 38.8 | 31.2 | 74.3 | 62.0 | |||||||||||||||||||
| Total adjustments | 38.8 | 34.6 | 74.3 | 117.7 | |||||||||||||||||||
| Adjusted EBITDA | 17.2 | 17.0 | (49.2) | (59.2) | |||||||||||||||||||
11
| Second quarter ended | Two quarters ended | ||||||||||||||||||||||||||||||||||||||||||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Net loss | (26.3) | (17.4) | (119.3) | (142.9) | |||||||||||||||||||||||||||||||||||||||||||
| Net (loss) income from discontinued operations (a) | (7.8) | — | (9.2) | 0.4 | |||||||||||||||||||||||||||||||||||||||||||
| Net loss from continuing operations | (18.5) | (17.4) | (110.1) | (143.3) | |||||||||||||||||||||||||||||||||||||||||||
| Add (deduct) the impact of: | |||||||||||||||||||||||||||||||||||||||||||||||
| Arbitration award (b) | — | — | — | 43.8 | |||||||||||||||||||||||||||||||||||||||||||
| Paola Confectii Earn-Out costs (c) | — | 3.4 | — | 11.9 | |||||||||||||||||||||||||||||||||||||||||||
| Japan Joint Venture remeasurement (gain) loss on contingent consideration and put option (e) | (1.1) | 1.1 | 1.2 | 2.1 | |||||||||||||||||||||||||||||||||||||||||||
| Unrealized foreign exchange (gain) loss on term loan facility (f) | (0.2) | 0.2 | 0.7 | (3.3) | |||||||||||||||||||||||||||||||||||||||||||
| Acceleration of unamortized costs on debt extinguishment (g) | — | — | 6.0 | — | |||||||||||||||||||||||||||||||||||||||||||
| (1.3) | 4.7 | 7.9 | 54.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Tax effect of adjustments | — | — | (1.6) | (12.0) | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted net loss | (19.8) | (12.7) | (103.8) | (100.8) | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted net income (loss) attributable to non-controlling interest (h) | 0.5 | (0.6) | (0.6) | (1.1) | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted net loss attributable to shareholders of the Company | (19.3) | (13.3) | (104.4) | (101.9) | |||||||||||||||||||||||||||||||||||||||||||
| Weighted average number of shares outstanding | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic & diluted | 97,027,585 | 97,069,513 | 97,170,754 | 96,991,610 | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted net loss per basic and diluted share attributable to shareholders of the Company | $ | (0.20) | $ | (0.14) | $ | (1.07) | $ | (1.05) | |||||||||||||||||||||||||||||||||||||||
(a)Net loss attributable to discontinued operations related to the Baffin Sale, which was completed on August 10, 2026.
(b)During the first quarter ended June 29, 2025, an arbitral decision was rendered in respect of an arbitration proceeding that took place in fiscal 2024 between the Company and a former supplier of the Company in connection with a previously announced commercial dispute relating to the termination of a contract in 2021. The arbitration resulted in an unfavourable judgment against the Company with financial compensation to be awarded to the former supplier. As a result, the Company was required to make a one-time payment to the former supplier of USD32.0m ($43.8m), inclusive of legal costs, which was recognized in SG&A expenses in the interim statements of loss and was paid to the former supplier during the second quarter of fiscal 2026.
(c)Value of the Earn-Out, which was recognized and settled in fiscal 2026, and did not recur in fiscal 2027.
(d)Calculated as depreciation and amortization as determined in accordance with IFRS Accounting Standards. Depreciation and amortization includes depreciation on right-of-use assets under IFRS 16, Leases.
(e)Changes to the fair value remeasurement of the contingent consideration and put option liability, inclusive of translation gains and losses, related to the Company’s joint venture with Sazaby League (“Japan Joint Venture”). The Company recorded a gain of $1.1m and a loss of $1.2m, respectively, on the fair value remeasurement of the contingent consideration and put option during the second and two quarters ended September 27, 2026 (second and two quarters ended September 28, 2025 - losses of $1.1m and $2.1m, respectively). These gains and losses are included in net interest, finance and other costs within the interim statements of loss.
12
(f)Unrealized gains and losses on the translation of the term loan facility from USD to CAD, net of the effect of derivative transactions entered into to hedge a portion of the exposure to foreign currency exchange risk. These costs are included in net interest, finance and other costs within the interim statements of loss.
(g)The non-cash unamortized costs accelerated in connection with the debt extinguishment due to the Fiscal 2027 Amendment to Term Loan.
(h)Calculated as net income (loss) attributable to non-controlling interest in the interim statements of loss of $0.5m and $(0.6)m for the second and two quarters ended September 27, 2026, respectively, related to the revaluation of the put option liability and contingent consideration associated with the non-controlling interest in the Japan Joint Venture (second and two quarters ended September 28, 2025 - net loss attributable to non-controlling interest of $(0.6)m and $(1.1)m, respectively).
13
Revenue by Segment
| Second quarter ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | As reported | Foreign exchange impact | In constant currency | As reported | In constant currency | ||||||||||||||||||||||||||||||||||
| DTC | 129.6 | 126.2 | 3.4 | (2.6) | 0.8 | 2.7 | % | 0.6 | % | ||||||||||||||||||||||||||||||||
| Wholesale | 128.2 | 122.6 | 5.6 | — | 5.6 | 4.6 | % | 4.6 | % | ||||||||||||||||||||||||||||||||
| Other | 16.2 | 10.0 | 6.2 | 0.1 | 6.3 | 62.0 | % | 63.0 | % | ||||||||||||||||||||||||||||||||
| Total revenue | 274.0 | 258.8 | 15.2 | (2.5) | 12.7 | 5.9 | % | 4.9 | % | ||||||||||||||||||||||||||||||||
Revenue by Geography
| Second quarter ended | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||
| CAD $ millions | September 27, 2026 | September 28, 2025 | As reported | Foreign exchange impact | In constant currency | As reported | In constant currency | ||||||||||||||||||||||||||||||||||
| Canada | 50.2 | 47.5 | 2.7 | — | 2.7 | 5.7 | % | 5.7 | % | ||||||||||||||||||||||||||||||||
| United States | 57.4 | 52.0 | 5.4 | (0.6) | 4.8 | 10.4 | % | 9.2 | % | ||||||||||||||||||||||||||||||||
| North America | 107.6 | 99.5 | 8.1 | (0.6) | 7.5 | 8.1 | % | 7.5 | % | ||||||||||||||||||||||||||||||||
Greater China1 | 68.5 | 51.7 | 16.8 | (2.2) | 14.6 | 32.5 | % | 28.2 | % | ||||||||||||||||||||||||||||||||
Asia Pacific (excluding Greater China1) | 29.0 | 27.5 | 1.5 | 0.2 | 1.7 | 5.5 | % | 6.2 | % | ||||||||||||||||||||||||||||||||
| Asia Pacific | 97.5 | 79.2 | 18.3 | (2.0) | 16.3 | 23.1 | % | 20.6 | % | ||||||||||||||||||||||||||||||||
EMEA2 | 68.9 | 80.1 | (11.2) | 0.1 | (11.1) | (14.0) | % | (13.9) | % | ||||||||||||||||||||||||||||||||
| Total revenue | 274.0 | 258.8 | 15.2 | (2.5) | 12.7 | 5.9 | % | 4.9 | % | ||||||||||||||||||||||||||||||||
1Greater China comprises Mainland China, Hong Kong, Macau, and Taiwan.
2EMEA comprises Europe, the Middle East, Africa, and Latin America.
Indebtedness
| CAD $ millions | September 27, 2026 | September 28, 2025 | $ Change | March 29, 2026 | $ Change | ||||||||||||||||||||||||
| Cash | 87.1 | 94.2 | (7.1) | 408.2 | (321.1) | ||||||||||||||||||||||||
| Mainland China credit facilities | (4.0) | (13.4) | 9.4 | — | (4.0) | ||||||||||||||||||||||||
| Japan credit facility | (29.7) | (28.5) | (1.2) | — | (29.7) | ||||||||||||||||||||||||
| Revolving credit facility | — | (8.0) | 8.0 | — | — | ||||||||||||||||||||||||
| Term loan facility | (422.1) | (418.3) | (3.8) | (416.8) | (5.3) | ||||||||||||||||||||||||
| Lease liabilities | (413.2) | (333.1) | (80.1) | (374.6) | (38.6) | ||||||||||||||||||||||||
| Net debt | (781.9) | (707.1) | (74.8) | (383.2) | (398.7) | ||||||||||||||||||||||||
14