Canada Goose beats quarterly revenue estimates on resilient demand (updated)

Canada Goose Holdings

14/05/2026 12:14

Updates shares, adds background in paragraph 7, CFO comment in paragraphs 5, 6, analysts comment in paragraph 8, adds graphics

Q4 revenue up on strong winter demand

Increased investments, U.S. tariffs pressure Q4 margins

CFO Neil Bowden flags cautious consumer environment, geopolitical tensions

By Sanskriti  Shekhar

May 14 (Reuters) - Canada Goose GOOS.TO, GOOS.N on Thursday warned of subdued consumer spending due to growing macroeconomic uncertainty, even as the luxury apparel retailer beat Wall Street estimates for fourth-quarter revenue on strong demand for its premium winter parkas.

U.S.-listed shares of the company, however, pared premarket gains and were up 2% in early trading.

Canada Goose, which provided an annual forecast after a year, expects fiscal 2027 revenue to grow in the low single digits, compared with estimates of a 5.1% rise.

The company blamed weak traffic in key markets and reduced consumer confidence amid weaker spending by travelers, who are a major driver of luxury purchases, for the muted forecast.

"We did see some softening in performance toward the end of the quarter, reflecting a more cautious consumer environment as geopolitical tensions increased, particularly impacting inbound travel-related spend and discretionary demand," CFO Neil Bowden said during a post-earnings call.

Bowden added that "there has been much less inbound traffic" in the Middle East and Europe.

The Middle East conflict
     has disrupted travel and impacted luxury brands, including Birkin bag-maker Hermes HRMS.PA, Gucci-owner Kering PRTP.PA as well as French luxury giant LVMH LVMH.PA.

"The outlook underscores that even the most resilient luxury players can't easily maintain growth momentum given the mounting challenges they face," said Sky Canaves, analyst at eMarketer.

Canada Goose has been investing in seasonal launches, marketing and new collections, including Lunar New Year and spring lines, as it tries to expand beyond winter wear.

This helped the company post quarterly revenue of C$453.3 million ($330.51 million), beating estimates of C$412 million, according to data compiled by LSEG.

However, its quarterly gross margin of 69.6% was lower than 71.3% a year ago due to the increased investments and U.S. tariffs, while adjusted profit of 37 Canadian cents per share missed estimates of 40 cents.

($1 = 1.3723 Canadian dollars)

Canada Goose revenue growth over past two years https://www.reuters.com/graphics/CANADA%20GOOSE-RESULTS/CANADA%20GOOSE-RESULTS/zgvoldeoapd/chart.png

(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Leroy Leo)

((Sanskriti.Shekhar@thomsonreuters.com))