The gross profit rose 13.7 per cent to CA$513.8 million (~$375.3 million), while gross margin stood at 74 per cent, compared with 74.4 per cent in Q3 FY25. The slight margin decline was mainly due to product mix.
Canada Goose has reported strong Q3 FY26 results, with revenue rising 14.2 per cent to CA$694.5 million (~$507.3 million), driven by solid DTC growth and momentum across regions.
DTC sales grew 14.1 per cent, while wholesale rose 16.6 per cent.
Margins eased slightly due to product mix and higher SG&A costs.
Net debt fell sharply, supported by disciplined inventory and cash flow management.
DTC revenue increased 14.1 per cent to CA$591 million, supported by strong retail and e-commerce performance in Asia Pacific and North America. DTC comparable sales grew 6.3 per cent during the quarter. Wholesale revenue climbed 16.6 per cent to CA$88.3 million, or 13.9 per cent in constant currency, primarily reflecting the timing of shipments to wholesale partners, including delayed deliveries from the previous quarter. Other revenue increased 5.6 per cent to CA$15.2 million, driven by higher employee sales, Canada Goose said in a press release.
Selling, general and administrative (SG&A) expenses increased to CA$313.6 million from CA$247.7 million a year earlier. The rise was largely attributed to a one-time bad-debt provision related to a US wholesale partner, higher marketing investments, expanded global retail operations and the absence of a foreign exchange gain recorded in fiscal 2025.
Operating income came in at CA$200.2 million, compared with CA$204.3 million in the prior-year quarter. Net income attributable to shareholders was CA$134.8 million, or CA$1.36 per diluted share, versus CA$139.7 million, or CA$1.42 per diluted share, a year earlier.
On an adjusted basis, EBIT was CA$203.7 million, compared with CA$205.2 million last year, while adjusted EBIT margin declined to 29.3 per cent from 33.8 per cent. Adjusted net income attributable to shareholders was CA$142.3 million, or CA$1.43 per diluted share.
During the quarter, Canada Goose launched its Fall/Winter 2025 New Heirlooms and Snow Goose campaigns, which the company said strengthened brand momentum, increased repeat purchases and enhanced cultural relevance. The group also expanded its permanent retail footprint with four new store openings, taking the total store count to 81, and unveiled a new store design concept at its relocated Milan flagship.
The company continued to broaden its year-round assortment, driving strong engagement and accelerating unit sales growth across both down-filled and non-down-filled outerwear categories.
Inventory stood at CA$408.7 million at the end of the quarter, flat YoY, reflecting higher demand alongside disciplined inventory management. Net debt declined to CA$413 million from CA$546.4 million a year earlier, supported by strong operating cash flows, working capital discipline and lower borrowings.
Operating cash flow for the quarter was CA$336.2 million, compared with CA$348 million in the prior-year period, while cash on hand increased to CA$346.9 million at quarter end.
“Our third-quarter results underscore the strength of our global brand and top-line engine, with broad-based revenue growth and continued momentum across key regions and channels,” said Dani Reiss, chairman and chief executive officer of Canada Goose. “Our peak selling period reflected sharper execution—higher quality traffic driven by integrated global campaigns, strong consumer response to our expanded year-round assortment, and robust performance across both retail and e-commerce.”
“Margins this quarter reflected deliberate choices we made to expand product relevance and fuel brand momentum. Our focus now is converting this demand into stronger profitability. In recent years we have driven real overhead efficiency in our business, and now we are bringing the same focus to channel level SG&A discipline and marketing efficiency. These actions will position us to expand margins in the years ahead,” added Reiss.
Fibre2Fashion News Desk (SG)
