Canada Goose Reports Third Quarter Fiscal 2025 Results

Revenue of $607.9M

Net income attributable to shareholders was $139.7m, or $1.42 per diluted share

Canada Goose Holdings Inc. ((NYSE, TSX:GOOS) announced today financial results for the third quarter of fiscal 2025, which ended December 29, 2024. All amounts are in Canadian dollars unless otherwise indicated.

"Our third quarter results highlight the power of strong execution during a key consumer shopping period, particularly in December where we saw significant acceleration in the business," said Dani Reiss, Chairman and CEO of Canada Goose. "Brand momentum was robust in the quarter, amplified by the integrated global launch of our new Snow Goose collection which drove record-setting media coverage and a three-year high in brand search. Our retail execution delivered solid results despite ongoing macro challenges and, looking ahead, our focus remains on balancing operational excellence with strategic investments and strengthening the foundations that will continue driving both brand heat and commercial momentum across all our channels."

Third Quarter Fiscal 2025 Business Highlights:

Notable highlights from our third quarter included the following:

• Launched Haider Ackermann's inaugural capsule, reintroducing our Snow Goose label through a fulsome 360° campaign. The campaign included impactful in-store activations, influencer collaborations, social media campaigns, and brand events in locations including Iceland, Seoul, and Toronto.
• As part of our brand evolution, elevated the wholesale shopping experience at Selfridges, London with a bold visual expression, launching a Polar Bears International pop-up and taking over the window displays with our Fall Winter 24 collection.
• Opened two concession-based shop-in-shops bringing the total permanent store count to 74 at the end of the third quarter of fiscal 2025, strengthening our position in key markets.

Subsequent to Third Quarter Fiscal 2025

• Launched our Eyewear collection through our licensee partnership with Marchon Eyewear, representing a significant milestone in our ongoing product expansion journey.
• Appointed Judit Bankus as our new Head of Merchandising.

Third Quarter Financial Highlights¹:

^{All Year-Over-Year Comparisons Unless Otherwise Noted:}

• Total revenue decreased $2.0m to $607.9m, down 2.2% on a constant currency basis².
  • DTC revenue increased 0.7% to $517.8m, or down 1.4% on a constant currency basis² with DTC comparable sales³ declining 6.2%, partially offset by sales from non-comparable stores.
  • Wholesale revenue decreased 7.5% to $75.7m or 8.1% on a constant currency basis² due to a planned lower order book as we continue to elevate our presence within this sales channel by right-sizing our inventory position and building strong relationships with brand-aligned partners.
  • Other revenue increased $0.3m to $14.4m.
• Gross profit increased 0.5% to $452.0m. Gross margin for the quarter was 74.4% compared to 73.7% in the third quarter of fiscal 2024 primarily due to pricing and lower inventory provisioning, partially offset by product mix.
• Selling, general and administrative (SG&A) expenses were $247.7m, compared to $250.9m in the prior year period. The reduction in SG&A was primarily due to corporate expense efficiencies, including our fiscal 2024 workforce reductions, as well non-recurrence of costs relating to the Transformation Program and foreign exchange fluctuations. This was partially offset by a planned increase in marketing spend associated with the Snow Goose campaign and increase in store expenses such as labor related to the expansion of our global retail network.
• Operating Income was $204.3m, compared to $198.8m in the prior year period.
• Adjusted EBIT⁴ was $205.2m, compared to $207.2m in the prior year period.
• Net income attributable to shareholders was $139.7m, or $1.42 per diluted share, compared with a net income attributable to shareholders of $130.6m, or $1.29 per diluted share in the prior year period.
• Adjusted net income attributable to shareholders⁴ was $148.3m, or $1.51 per diluted share, compared with an adjusted net income attributed to shareholders of $138.6m, or $1.37 per diluted share in the prior year period.

Balance Sheet Highlights

Inventory of $407.4m for the third quarter ended December 29, 2024, was down 15% year-over-year, due to a temporary reduction in production levels.

The Company ended the third quarter of fiscal 2025 with net debt⁴ of $546.4m, compared with $587.4m at the end of the third quarter of fiscal 2024 due to higher cash balances primarily driven by working capital release this fiscal year. The Company renewed its normal course issuer bid (the "NCIB") in the third quarter of fiscal 2025, allowing the company to purchase for cancellation up to 4,556,841 subordinate voting shares over the 12-month period commencing on November 22, 2024 and ending on November 21, 2025, representing 10% of the "public float" determined in accordance with the requirements of the Toronto Stock Exchange as at November 8, 2024.

Fiscal 2025 Outlook⁵

The outlook that follows constitutes "financial outlook" and "forward-looking information" within the meaning of applicable securities laws, and is based on a number of assumptions and subject to a number of risks. The purpose of this outlook is to provide a description of management's expectations regarding the Company's annual financial performance and may not be appropriate for other purposes. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond the company's control. Please see "Forward-looking Statements" below for more information.

Canada Goose is updating the fiscal 2025 guidance issued with second quarter fiscal 2025 results published on November 7, 2024 to the following:

Our updated outlook takes into account our DTC year-to-date performance, which fell short of our expectations due to trends in global luxury consumer spending, and an increase in marketing investments in fiscal 2025, along with the following assumptions:

Conference Call Information

The Company will host the conference call at 8:30 a.m. EDT on February 6, 2025. The conference call can be accessed by using the following link: https://events.q4inc.com/attendee/451792319. After registering, an email will be sent including dial-in details and a unique conference call pin required to join the live call. A live webcast of the conference call will also be available on the investor relations page of the Company's website at http://investor.canadagoose.com.

About Canada Goose

Canada Goose is a performance luxury outerwear, apparel, footwear and accessories brand that inspires all people to thrive in the world outside. We are globally recognized for our commitment to Canadian manufacturing and our high standards of quality, craftsmanship and functionality. We believe in the power of performance, the importance of experience, and that our purpose is to keep the planet cold and the people on it warm. For more information, visit www.canadagoose.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements, including statements relating to our updated fiscal 2025 financial outlook, the related assumptions included herein, the execution of our proposed strategy, and our operating performance and prospects. These forward-looking statements generally can be identified by the use of words such as "believe," "could," "continue," "expect," "estimate," "may," "potential," "would," "will," and other words of similar meaning. Each forward-looking statement contained in this press release is subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the impact on our operations of the current global economic conditions and international trade environment and their evolution and are discussed under "Cautionary Note regarding Forward-Looking Statements" and "Factors Affecting our Performance" in our Management's Discussion and Analysis ("MD&A") as well as under "Risk Factors" in our Annual Report on Form 20-F for the year ended March 31, 2024. You are also encouraged to read our filings with the SEC, available at www.sec.gov, and our filings with Canadian securities regulatory authorities available on SEDAR+ at www.sedarplus.ca for a discussion of these and other risks and uncertainties. Investors, potential investors, and others should give careful consideration to these risks and uncertainties. We caution investors not to rely on the forward-looking statements contained in this press release when making an investment decision in our securities.

Although we base the forward-looking statements contained in this press release on assumptions that we believe are reasonable, we caution readers that actual results and developments (including our results of operations, financial condition and liquidity, and the development of the industry in which we operate) may differ materially from those made in or suggested by the forward-looking statements contained in this press release. Additional impacts may arise that we are not aware of currently. The potential of such additional impacts intensifies the business and operating risks which we face, and these should be considered when reading the forward-looking statements contained in this press release. In addition, even if results and developments are consistent with the forward-looking statements contained in this press release, those results and developments may not be indicative of results or developments in subsequent periods. As a result, any or all of our forward-looking statements in this press release may prove to be inaccurate. No forward-looking statement is a guarantee of future results. Moreover, we operate in a highly competitive and rapidly changing environment in which new risks often emerge. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements. You should read this press release and the documents that we reference herein completely and with the understanding that our actual future results may be materially different from what we expect. The forward-looking statements contained herein are made as of the date of this press release (or as of the date specifically indicated therein), and we do not assume any obligation to update any forward-looking statements except as required by applicable laws. For greater certainty, references herein to "forward-looking statements" include "forward-looking information" within the meaning of Canadian securities laws.

Condensed Consolidated Interim Statements of Income

(in millions of Canadian dollars, except per share amounts)

Condensed Consolidated Interim Statements of Comprehensive Income

(in millions of Canadian dollars, except per share amounts)

Condensed Consolidated Interim Statements of Financial Position

(in millions of Canadian dollars)

Condensed Consolidated Interim Statements of Cash Flows

(in millions of Canadian dollars)

Non-IFRS Financial Measures and Other Specified Financial Measures

This press release includes references to certain non-IFRS financial measures such as adjusted EBIT, adjusted net income (loss) attributable to shareholders of the Company, net debt, and constant currency revenue and certain non-IFRS ratios such as, adjusted EBIT margin and adjusted net income (loss) per basic and diluted share attributable to the shareholders of the Company. These financial measures are employed by the Company to measure its operating and economic performance and to assist in business decision-making, as well as providing key performance information to senior management. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors and analysts use this information to evaluate the Company's operating and financial performance. These financial measures are not defined under IFRS nor do they replace or supersede any standardized measure under IFRS. Other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures. Additional information, including definitions and reconciliations of non-IFRS financial measures to the nearest IFRS financial measure can be found in our MD&A for the third quarter and three quarters ended December 29, 2024, under "Non-IFRS Financial Measures and Other Specified Financial Measures". Such reconciliations can also be found in this press release under "Reconciliation of Non-IFRS Measures" below.

This press release also includes references to DTC comparable sales (decline) growth which is a supplementary financial measure defined as a rate of (decline) growth of sales on a constant currency basis from e-Commerce sites and stores which have been operating for one full year (12 successive fiscal months). The measure excludes store sales from both periods for the specific trading days when the stores were closed, whether those closures occurred in the current period or the comparative period.

Reconciliation of Non-IFRS Measures

The tables below reconcile net income to adjusted EBIT and adjusted net income attributable to shareholders of the Company for the periods indicated, constant currency revenue to revenue across segments and geographies, and net debt for purposes of presenting its calculation. Adjusted EBIT margin is equal to adjusted EBIT for the period presented as a percentage of revenue for the same period.

Revenue By Segment

Revenue by Geography

Indebtedness

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