Adriano Marchese
Canada Goose is bracing for a pullback in consumer spending and has raised prices to mitigate the impact.
The Canadian apparel company, best known for its pricy winter parkas, is guiding for modest revenue growth this fiscal year as it factors in a tougher macro backdrop and softer consumer sentiment seen this spring.
"We are planning for a more challenging macro environment, reflecting softer demand trends, exiting fiscal 2026 and into April, which we expect will continue to weigh on consumer confidence and travel," Chief Financial Officer Neil Bowden said in an earnings call Thursday.
Management said the pullback began in late March, as consumers held back on big-ticket purchases amid geopolitical tensions and more uncertain economic forces, particularly in regions more dependent on tourism and discretionary spending such as Europe and the Middle East.
"There is a broader sense that the macro environment is going to be more challenging than it was a year ago and we want to give ourselves a pretty wide range of outcomes," Bowden said. As a result, Canada Goose is shifting from its high-growth push to a more measured strategy.
To mitigate slowing consumer trends, the company has increased the prices of its product assortment, grew its wholesale order book and opened new stores. The company is also planning to lower its costs, which, taken with the other initiatives, are expected to protect its profit margins.
Canada Goose has spent the past several years diversifying away from just coats. The brand now leans more heavily on knitwear, fleece, rainwear and lighter-weight jackets, categories designed to generate steadier revenue outside the winter surge that once defined its identity.
Looking ahead, it is forecasting low-single-digit revenue growth, compared with Wall Street's estimates of a rise of about 1.4% to 1.55 billion Canadian dollars, or around $1.13 billion, in fiscal 2027. The company is also guiding for adjusted earnings before interest and taxes margin in the range of 11% to 12%.
Shares recently traded 1.6% higher at C$14.86. The stock is down over 16% since the year began, but still up 16% over the last 52 weeks.
In its fourth quarter ended March 29, Canada Goose reported an 18% rise in revenue to C$453.3 million, above analyst projections, benefiting from higher direct-to-consumer and wholesale revenue streams.
Net income rose to C$32.7 million, or C$0.28 a share, from C$27.7 million, or C$0.28 a share, a year ago. On an adjusted basis, earnings came in C$0.03 shy of forecasts at C$0.37 a share.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
May 14, 2026 11:11 ET (15:11 GMT)
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