Canada Goose on Wednesday withheld from providing its fiscal 2026 forecast due to uncertainty stemming from the implementation of U.S. President Donald Trump’s tariffs.
However, the Toronto-based luxury retailer reported strong quarterly sales, which pushed its U.S.-listed shares up 8% in premarket trading.
The parka maker joined several other companies in either withholding, cutting or withdrawing expectations for the year following the Trump administration’s unpredictable tariff shifts.
The tariff policies sparked a global trade war, rattling several business and Americans, who are now bracing for a surge in product prices. Retail behemoth Walmart has already hiked prices on some items.
Canada Goose, which leans heavily on winter clothing, saw strong sales during the key January to March season, partly aided by a Lunar New Year campaign in China, its biggest market that generates 31.7% of its total revenue. Greater China revenue surged 63.1%.
In the United States, a marketing campaign with fashion designer Haider Ackermann, which kicked off in November, aided a 15.3% rise in quarterly revenue. The country accounts for 24.3% of total revenue.
Benefits from leaner inventory levels as well as robust growth of 15.7% in direct-to-consumer channel strengthened its margins.
The company’s quarterly gross margin was 71.3%, compared with 65.1% a year ago.
The company’s quarterly revenue rose to C$384.6 million ($277.15 million), from C$358 million a year ago. Analysts’ estimated C$356.4 million, according to data compiled by LSEG.
($1 = 1.3877 Canadian dollars)
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Pooja Desai and Leroy Leo)
