Canada Goose beats revenue estimates but new U.S. tariffs could cast a shadow (updated)

Canada Goose Holdings

30/07/2026 12:02

Adds details throughout, adds shares in paragraph 5, graphic
By Anuja Bharat Mistry and Danielle Kaye
July 30 (Reuters) - Canada Goose GOOS.TO, GOOS.N beat Wall Street expectations for first-quarter revenue on Thursday, helped by steady demand for its seasonal collections including lightweight jackets and t-shirts.
The Toronto-based company, however, said that newly announced U.S. tariffs on Canadian imports could affect earnings in the months ahead.
President Donald Trump unveiled 50% tariffs on a broad range of Canadian goods on July 20, with the duties set to take effect in August and apply to several items including clothing. The duties would hit Canada Goose's fiscal year 2027 operating margin by less than 200 basis points, finance chief Neil Bowden said.
"The situation remains fluid, and we continue to monitor developments between Canada and the U.S. and assess potential implications for our business," Bowden said on a post-earnings call.
U.S.-listed shares of Canada Goose dipped about 1% in early trading after the luxury brand kept its annual revenue forecast unchanged, expecting low-single-digit growth from the prior year.
To widen its customer base, the luxury parka maker has been broadening its product lineup beyond its core down-filled jackets and coats, adding outerwear and lightweight styles suited to more seasons and occasions.
It also introduced its spring and summer collections earlier than in previous years, a move CEO Dani Reiss said is driving more consistent shopper engagement beyond the winter season.
Still, macro-economic pressures and a downturn in international travel have dampened store traffic, especially in the EMEA region, Reiss said.
Data showed U.S. retail sales rose slightly in June, as wealthier consumers continue to spend, while lower-income households remain under pressure from inflation and moderating wage growth, a trend reflected in Canada Goose's earnings.
The company's revenue for the quarter ended June 28 rose 10.3% to C$118.9 million ($84.67 million) on a reported basis from a year ago, above analysts' estimates of C$108.8 million, according to data compiled by LSEG.
"This is a healthy result from GOOS amidst a backdrop of what we perceive to be muted investor expectations," Goldman Sachs analysts said in a research note, while noting a disparity in results by region.
Sales in the U.S. dropped 19%, on a reported basis, from a year ago and also fell in the EMEA region, while the apparel brand saw strong growth in Greater China with a 44.2% jump in revenue.
 The company attributed its strength in China to strong demand among Chinese consumers for its luxury products, at home and while traveling.
Canada Goose is grappling with a "mixed consumer environment," Bowden said. The company expects growth to moderate in the second quarter, he said, adding that "consumer demand remains uneven across markets."
Leaner inventory management and steady revenue growth have helped Canada Goose absorb costs tied to marketing and product innovation, with quarterly gross margin at 62.4% compared with 61.4% a year ago.
Canada Goose also posted a narrower adjusted loss of 89 Canadian cents per share, from a loss of 91 Canadian cents per share a year ago. Analysts had estimated a loss of 96 Canadian cents per share.
     
     
($1 = 1.4042 Canadian dollars)

 (Reporting by Anuja Bharat Mistry in Bengaluru and Danielle Kaye in New York; Editing by Diti Pujara)
 ((AnujaBharat.Mistry@thomsonreuters.com;))