Actions of Canada goose More than 20% arose on Wednesday after the company reported fiscal profits in the fourth quarter that overcame analysts' estimates, although it achieved its fiscal perspective 2026 due to the “macroeconomic uncertainty.”
The luxury retailer said it will not provide a financial perspective for fiscal year 2026 due to uncertainty, citing “dynamic consumer spending patterns caused by the unpredictable global commercial environment.”
However, Canada Goose said that “continues to trust the brand's strength, the solid financial position of the company and its ability to adapt to changing conditions.”
This is what the company reported for the fourth fiscal quarter compared to what Wall Street expected, based on an LSEG analysts survey:
- Profit per action: 33 Canadian cents adjusted vs 23 Canadian cents expected
- Revenue: CA $ 384.6 million ($ 277.1 million), vs CA $ 356.4 million expected
In a call with investors, Canada's director of Operations, Beth Clymer, said that 75% of Canada's units are made in Canada and “practically all” comply with the United States-Mexico-Canada agreement, which means that they are currently exempt from the tariffs of President Donald Trump. The remaining production, which comes mainly from Europe, faces an increase in tariffs, but will have a “minimum financial impact,” he said.
The CEO Dani Reiss echoed that feeling, adding that the “vast majority” of retailer's products is currently not affected by tariffs.
“This is not the first time that Canada Goose has successfully sailed uncertainty. We have suffered challenging times before, until 2008, through Covid, and every time we have emerged stronger,” said Reiss.
The financial director, Neil Bowden, added that tariffs are not directly materials for the financial plans of fiscal year 2026, but the “indirect effect of these actions on the global economy and the changing panorama create greater uncertainty for us”, especially because the company is months of its maximum income periods.
The income of Canada Goose increased by 7.4% since the same period last year.
The net income attributable to the shareholders for the fourth quarter ended on March 30 was CA $ 27.1 million, or 28 Canadian cents per diluted action, compared to the net income attributable to the shareholders of CA $ 5 million, or 5 Centavos Canadian per diluted action, in the period of the previous year.
The figure of profits adjusted by the company excluded the unique items, including the costs of office transitions, joint companies and other investments.
As of Tuesday, the company's shares had fallen almost 14% to date, reaching a historical minimum last month after Barclay analysts reduced the shares and reduced their target price.
The luxury sector as a whole has shown signs of weakness, with main players such as LVHMOwner of Burberry and Gucci Kering Informing a slowdown in sales in the quarter.
Canada Goose, known for its luxurious Parkas and Hemparche jackets that can be sold for more than $ 1,000, has tried to expand to the category that is not winter offering products such as rain jackets and warm weather clothes.
Its collection of glasses, presented in the fourth quarter, was the first launch of company online products, with virtual test tools with artificial intelligence. The retailer described the launch as a “key milestone” in his “trip of product category expansion” and part of a greater impulse to strengthen the relevance throughout the year of the brand.
