Canada Goose Holdings Inc. (NYSE:GOOS) saw its shares plunge 11.8% on Thursday after the luxury outerwear company’s second-quarter fiscal 2026 results fell short of market expectations, even as its direct-to-consumer (DTC) business posted double-digit growth.
The company reported an adjusted loss of C$0.14 per share, missing analyst projections for a C$0.08 loss, while revenue came in at C$272.6 million, narrowly below the C$274 million consensus. Despite the miss, revenue still rose 1.8% year-over-year, supported by strong DTC momentum.
DTC revenue jumped 21.8% to C$126.6 million, boosted by 10.2% comparable sales growth, as the brand continues to expand its direct retail footprint and enhance customer engagement.
“Our second quarter results reflect strong DTC performance and positive comparable sales growth — clear proof our strategy is working,” said Dani Reiss, Chairman and CEO of Canada Goose. “We’re exactly where we planned to be, investing with intention, elevating our product offering, brand and consumer experiences, and entering peak season with confidence.”
However, profitability weakened. The company posted an operating loss of C$17.6 million, compared with operating income of C$1.6 million in the same quarter last year. The decline was primarily due to a rise in selling, general and administrative expenses, which climbed to C$187.7 million from C$162.5 million a year ago, reflecting higher store execution costs ahead of peak season and increased marketing investment.
Regionally, Asia Pacific was the standout performer, with revenue up 20% to C$79.3 million, while North America fell 7.4% to C$112.1 million. Wholesale revenue slipped 1% to C$135.9 million, consistent with the company’s ongoing shift toward DTC-led growth.
Gross margin improved to 62.4% from 61.3% a year earlier, thanks to a larger mix of DTC sales, although higher input costs and product mix partially offset those gains.
At the end of the quarter, net debt stood at C$707.1 million, down from C$826.4 million last year, supported by disciplined working capital management and lower borrowing levels.