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Canada Goose (TSE:GOOS)
NYSE:GOOS
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Canada Goose Holdings
(NYSE:GOOS)
Select Model
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Rating:66Neutral
Price Target:
C$20.50
▲(14.46% Upside)
Canada Goose Holdings shows strong financial performance with robust revenue growth and profitability, supported by positive earnings call insights. However, high leverage and valuation concerns, along with mixed technical indicators, moderate the overall score.
Positive Factors
Direct-to-Consumer Sales Growth
The sustained growth in direct-to-consumer sales indicates strong consumer demand and effective brand positioning, enhancing long-term revenue potential.
New Product Offerings
The success of new product offerings diversifies the product line and attracts new customers, supporting long-term growth and market expansion.
Gross Margin Improvement
Improved gross margins reflect efficient cost management and a favorable sales mix, contributing to sustainable profitability.
Negative Factors
High Leverage
High leverage poses financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.
Pressure on Operating Margin
Pressure on operating margins due to increased investments may impact short-term profitability, requiring careful cost management to ensure long-term financial health.
Revenue Decline in North America and EMEA
Declining revenue in key regions like North America and EMEA suggests challenges in market penetration and consumer demand, potentially affecting overall growth.
Canada Goose Holdings (GOOS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.74B
Dividend YieldN/A
Average Volume (3M)105.19K
Price to Earnings (P/E)65.2
Beta (1Y)1.44
Revenue Growth3.78%
EPS Growth-54.87%
CountryCA
Employees4,462
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-0.14
Shares Outstanding46,066,746
10 Day Avg. Volume146,072
30 Day Avg. Volume105,194
Financial Highlights & Ratios
PEG Ratio-1.81
Price to Book (P/B)4.04
Price to Sales (P/S)1.26
P/FCF Ratio15.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$20.10Price Target Upside12.21% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.96
Revenue Forecast (FY)C$1.44B
Canada Goose Holdings Business Overview & Revenue Model
Company DescriptionCanada Goose Holdings Inc. designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Asia Pacific, Europe, the Middle East, Africa, and Latin America. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, knitwear, footwear, and accessories for fall, winter, and spring seasons. As of April 3, 2022, the company operated through its 56 national e-commerce markets and 41 directly operated retail stores in North America, Europe, and Asia Pacific. It also sells its products through wholesale partners and distributors. The company was founded in 1957 and is headquartered in Toronto, Canada.
How the Company Makes MoneyCanada Goose generates revenue primarily through the sale of its premium outerwear and related apparel. The company operates a direct-to-consumer model, selling products through its own branded retail stores and e-commerce platforms, which allows for higher profit margins. Additionally, Canada Goose sells its products through wholesale channels, partnering with select luxury department stores and specialty retailers worldwide. Key revenue streams include seasonal collections, limited edition releases, and collaborations that boost brand visibility. The company's focus on international expansion, particularly in markets such as Europe and Asia, along with strategic marketing and brand positioning, contributes significantly to its earnings.
Canada Goose Holdings Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong sales growth in the DTC channel and new product offerings, especially in APAC, with challenges related to operating margins and revenue declines in certain regions. The company showed confidence in strategic investments for long-term growth despite short-term margin pressures.Q2-2026 Updates
Positive Updates
Strong Direct-to-Consumer Sales Growth
Direct-to-consumer comparable sales grew 10% year-over-year with positive comps in all regions, marking 10 consecutive months of positive comps. D2C revenue was up 21% with sustained strong performance across all regions.
Increase in New Product Offerings
Revenue from new styles as a percentage of total revenue more than doubled year-over-year, driven by new products in both downfilled and non-downfill categories, with newness now representing roughly 40% of DTC sales.
Growth in APAC Region
Revenue in APAC increased 20%, driven by growth in both DTC and wholesale channels, with Mainland China leading the way and strong demand in Japan supported by new store openings.
Gross Margin Improvement
Gross margin expanded 110 basis points year-over-year to 62.4%, primarily due to favorable channel mix with more DTC and less revenue in other channels.
Successful Cost Management
Inventory was down 3% from last year, reflecting stronger consumer demand and tighter inventory management. Net debt was reduced compared to the same period last year.
Negative Updates
Pressure on Operating Margin
Operating margin was pressured by key investments in marketing and stores, leading to a loss of $14 million in adjusted EBIT for the quarter compared to a $3 million profit in Q2 last year.
Revenue Decline in North America and EMEA
Revenue in North America was down 8% year-over-year due to channel mix and timing of wholesale shipments. Revenue in EMEA was down 7% year-over-year, with challenges in the U.K. consumer environment.
Increase in SG&A Expenses
SG&A expense for the quarter increased by $25 million or 16% year-over-year, reflecting planned investments in marketing, stores, and product creation, leading to a decrease in EBIT dollars and margin.
Company Guidance
During the Canada Goose Inc. Second Quarter Fiscal 2026 Earnings Call, the company reported a 2% increase in revenue to $273 million, although this represented a 1% decline on a constant currency basis. Direct-to-consumer (DTC) comparable sales grew by 10% year-over-year, with strong performances across all regions, particularly North America and APAC, where the revenue increased by 20%. The company emphasized the success of new product offerings, with revenue from new styles now making up 40% of DTC sales, up from 10% the previous year. However, wholesale revenue fell by 5%, aligning with expectations. Gross margin expanded by 110 basis points to 62.4%, despite higher product costs. SG&A expenses increased by 16% year-over-year, attributed to investments in marketing and stores, contributing to an adjusted EBIT loss of $14 million. Inventory levels were managed carefully, showing a 3% decrease from the prior year, and net debt was reduced to $707 million. The company remains confident in its strategy, aiming for sustained growth and improved margins in the coming quarters.Canada Goose Holdings Financial Statement Overview
Summary
Canada Goose Holdings demonstrates strong revenue growth and profitability with a solid gross profit margin. However, the net profit margin is low, and the company has high leverage, indicating financial risk. Cash flow generation is robust, but recent declines in free cash flow growth warrant attention.Income Statement
Canada Goose Holdings shows strong revenue growth with a TTM increase of 35.1%, indicating robust demand. The gross profit margin of 69.9% is impressive, reflecting efficient cost management. However, the net profit margin is relatively low at 3.4%, suggesting room for improvement in operational efficiency. The EBIT and EBITDA margins are moderate, indicating stable profitability but highlighting potential for cost optimization.75
Positive
Balance Sheet
The company has a high debt-to-equity ratio of 1.67, which could pose financial risk if not managed carefully. Return on equity is moderate at 10.3%, showing decent profitability relative to shareholder investment. The equity ratio of 28.7% suggests a balanced asset structure but indicates reliance on debt financing.65
Positive
Cash Flow
Operating cash flow is strong, with a coverage ratio of 0.75, indicating good cash generation relative to net income. However, the free cash flow growth rate has declined by 26%, which could impact future investment capacity. The free cash flow to net income ratio of 0.94 is healthy, showing effective cash conversion.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.37B | 1.33B | 1.35B | 1.22B | 1.10B | 903.70M |
| Gross Profit | 962.70M | 917.40M | 943.10M | 815.20M | 733.60M | 554.00M |
| EBITDA | 210.90M | 244.30M | 299.80M | 236.50M | 263.70M | 190.70M |
| Net Income | 26.40M | 58.40M | 94.80M | 72.70M | 94.60M | 70.30M |
Balance Sheet | ||||||
| Total Assets | 1.72B | 1.48B | 1.62B | 1.59B | 1.34B | 1.51B |
| Cash, Cash Equivalents and Short-Term Investments | 285.20M | 144.90M | 334.40M | 286.50M | 287.70M | 477.90M |
| Total Debt | 831.10M | 728.40M | 742.80M | 754.00M | 620.70M | 622.60M |
| Total Liabilities | 1.21B | 1.06B | 1.06B | 1.11B | 912.70M | 907.10M |
| Stockholders Equity | 494.70M | 417.00M | 541.20M | 469.50M | 427.90M | 600.10M |
Cash Flow | ||||||
| Free Cash Flow | 203.60M | 108.10M | 274.00M | 68.20M | 114.40M | 261.70M |
| Operating Cash Flow | 227.60M | 164.60M | 292.40M | 116.30M | 151.60M | 293.70M |
| Investing Cash Flow | -24.40M | -72.40M | -18.40M | -45.30M | -37.20M | -32.00M |
| Financing Cash Flow | -185.80M | -232.80M | -93.60M | -80.70M | -298.20M | 197.00M |
Canada Goose Holdings Technical Analysis
Negative
17.91
Price Trends
18.33
Negative
18.67
Negative
16.77
Positive
Market Momentum
0.04
Negative
45.68
Neutral
24.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GOOS, the sentiment is Negative. The current price of 17.91 is below the 20-day moving average (MA) of 18.21, below the 50-day MA of 18.33, and above the 200-day MA of 16.77, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 45.68 is Neutral, neither overbought nor oversold. The STOCH value of 24.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GOOS.
Canada Goose Holdings Risk Analysis
Canada Goose Holdings disclosed 49 risk factors in its most recent earnings report. Canada Goose Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Canada Goose Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $16.29B | 20.10 | 31.12% | 1.47% | 6.64% | 27.37% | |
75 Outperform | C$14.45B | 41.31 | 30.09% | ― | 26.51% | 172.52% | |
66 Neutral | C$1.74B | 65.22 | 6.07% | ― | 3.78% | -54.87% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | C$110.09M | -278.57 | -0.06% | ― | -1.95% | -102.54% | |
48 Neutral | C$7.99B | 328.29 | 45.71% | 0.86% | -5.14% | -87.15% | |
48 Neutral | C$127.44M | -4.14 | -19.60% | ― | 4.87% | -1195.39% |
* Consumer Cyclical Sector Average
TSE:GOOS
Canada Goose Holdings
17.91
3.02
20.28%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.