Canada Goose Holdings Inc

Kerry Baker, President of Brandon Commercial, and Beth Clymer, President, Chief Operating Officer. Today's presentation will contain forward-looking statements that are based on assumptions and therefore subject to risks and uncertainties that could cause actual results to differ materially from those projected. We undertake no obligation to update these statements except as required by law. You can read about these assumptions, risks and uncertainties in our press release issued this morning, as well as in our filings with the US and Canadian regulators. These documents are also available on the investor relations section of our website. We report in Canadian dollars, so all amounts discussed today are in Canadian dollars, unless otherwise indicated. Please note that financial results described on today's call will compare fourth quarter results ended March 30th, 2025, with the same period ended March 31st, 2024, unless otherwise noted. For today's call, Danny, Kerry, Beth, and I will deliver prepared remarks, following which we will open the call up to take questions. With that, I'll turn the call over to Danny.

Thanks, Neil, and good morning, everyone. I'll start with our fourth quarter performance and progress on our operating imperatives before I turn it over to the team to review our results in greater detail. The fourth quarter marked a strong finish to fiscal 2025 with revenue up 7% year-over-year. Our direct-to-consumer business showed positive momentum from a very strong December, delivering 7% DTC comparable sales growth for the quarter, a substantial improvement from our year-to-date performance. We are very pleased with our strong finish to the year and the progress that we've made building on the strength of our brand, enhancing our deep-to-sea execution, and operating more efficiently. Our focus has delivered results, strengthening our foundation for future growth. The Canada Goose the customers experienced this quarter was more culturally relevant, more deliberate in our execution, and much more impactful in everything we did. We didn't just meet the moment. We created moments that elevated our brand in the global conversations. For example, our marketing campaigns for C-Mantra and iWear in February significantly boosted global brand search demand with a 19% year-over-year increase. This positive momentum continued into March, particularly in the United States. We took significant steps to become a better retailer in order to drive higher sales productivity in our stores. Our focus on enhancing store staffing, inventory position, and the in-store experience contributed to higher conversion rates in comparable stores for the year. We evolved our marketing and brand strategy, delivering impactful brand moments during our Snow Goose campaign, which now serves as the blueprint for future campaigns. And we successfully managed our inventory, which is now down year over year for six consecutive quarters, resulting in cleaner inventory across all channels and paving the way for much more product newness in the coming years. In today's uncertain trade environment, it is worth noting that our Made in Canada products, which represent the vast majority of our offering, are not currently impacted by the recently announced tariffs on imports into the United States. While these are uncertain times, I want to emphasize that this is not the first time Canada Use has successfully navigated uncertainty. We've endured challenging times before, through 2008, through COVID, And each time, we've emerged stronger. Looking ahead, we're building on this momentum with a clear path forward. What works will continue to amplify. What needs refinement will evolve. In fiscal year 2026, we are going to focus on four key operating imperatives, each of which build on the success we saw from our efforts in fiscal 2025. First, building brand heat through focused marketing investments. The results that we've achieved through our approach to marketing in fiscal 25 have informed our approach for the year ahead. When we invest boldly in strategic brand moments, we see a direct commercial impact. Our second key area is expanding our product offering to enhance year-round relevance. With our strengthened product leadership team, And with Hyder Ackerman's creative involvement and vision, we will continue to develop and launch newness and strengthen our seasonal collections that will continue to resonate with customers throughout the year. Third, we will be driving business expansion through strategic channel development. We will continue to selectively expand our store footprint while renovating existing locations to deliver an exceptional brand experience and to better position our brand across strategic wholesale partners. And finally, we are operating efficiently and with pace and accountability. Building for the future requires strategic investments in our people, systems, and processes, particularly in areas directly connected to revenue generation and customer experience. We will be making those critical investments while at the same time continuing our efforts to drive efficiency throughout our business. We are entering fiscal 2026 with strong momentum, momentum built on lasting foundations. with a sharp focus on our operating imperatives, we're strengthening our brand, building it for generations, not just a single season. I want to thank our talented employees around the world for their dedication and commitment to excellence. And with that, I'll turn it over to Kerry to discuss our commercial performance in more detail.

Thanks, Danny. Building on the inflection point in December, our momentum continued through the fourth quarter. Let me walk you through our progress in two of our three key operating imperatives in fiscal 2025 and how they position us for the future. Starting with fueling the next phase of our brand strategy. In Q4, on the heels of our successful Snow Goose campaign, we introduced the Sea Mantra collection, our most technically advanced rain jackets yet. Designed for extreme wet weather, they offer the same high performance standards that define our Snow Mantra jackets in extreme cold. This bold addition to our performance category shows how we continue to push the limits in craftsmanship and innovation. and the launch also drove significant interest within our rainwear category. Our product mix continued to evolve, with downfield outerwear seeing growth and apparel remaining our fastest growing category in both Q4 and across the full fiscal year. Our wholesale strategy is another key part of our brand evolution, and we are seeing clear results. Strengthening our strategic partnerships and our focused approach to curated allocations are paying off, with stronger year-over-year sell-through, especially in North America. This led to higher in-season reorder demand and a cleaner inventory position in the channel. Now turning to our second operating imperative, driving best-in-class retail execution. As Danny mentioned, fourth quarter DTC sales comp was up 7% and we saw higher year-over-year conversion in every region. This growth validates both the investments we've made and our relentless focus on getting the fundamentals right. to enhance the consumer experience across our retail network. Let me provide some color on our regional DTC performance. In North America, we saw exceptional momentum with DTC comps up 17% for the quarter. Store performance was particularly strong with double digit growth each month, reflecting the success of our retail execution strategies and marketing initiatives in the region. In EMEA, results were mixed throughout the quarter. The UK continued to face more challenging market conditions compared with the rest of the region, where our stores in Milan and Paris in particular delivered strong performance. In APAC, we experienced a strong January driven by Lunar New Year, but softness in February and March. While traffic in the region continued to be impacted by macro challenges, we increased sales conversion. Our expanded live streaming presence in mainland China is another continued opportunity driving significant brand visibility and enhanced consumer engagement. Looking at global digital channel performance, we saw a spike in revenue and traffic in February, thanks to the online launch of our eyewear collection, where we introduced AI-powered virtual try-on tools, which consumers loved. These tools didn't just improve the online experience, they boosted sales across other categories. And by staying consistent and intentional with how we connect with our consumers, We've seen our subscriber base grow year over year, with email now driving a much bigger share of our e-commerce sales. Now let me share our fiscal 2026 operating imperatives, which Danny introduced earlier. First, building brand heat through focused marketing investments in upper funnel marketing to drive brand heat and cultural relevance. What we saw in fiscal 2025 is clear. When we make bold moves that spark attention, search and sales follow. This work is all part of our journey to elevate the brand and connect with the right audience. By shifting our marketing efforts and investments earlier in the year and higher up the funnel, our aim is to create standout moments that build momentum and demand ahead of peak periods and keep Canada Goose top of mind all year long. To do that, we're increasing marketing spend as a percentage of revenue. We're increasing our investment in upper funnel marketing efforts And we're enhancing marketing impact through high-profile campaigns, exclusive products, and impactful storytelling. We're also evolving how we measure impact, recognizing that it's the full journey from brand building to conversion that drives results. This approach is already showing its value, helping us understand what's working and why. We're learning more about how each channel contributes, whether it's building long-term affinity or generating immediate sales, and using those insights to make smarter, more effective decisions. Our second operating imperative for fiscal 2026 is expanding our product offering to enhance year round relevance, which will deliver through three key initiatives. First, bringing more newness than ever, nearly doubling the mix of updated and brand new styles, giving consumers more reasons to shop with us again. The excitement here is already building. We've received strong enthusiasm from our wholesale partners for both our spring summer and fall winter 25 collections. Second, growing our apparel line to strengthen our year-round relevance and reach a broader range of lifestyles and environments, while still remaining a leader in down-filled outerwear through elevated fabrics, standout style, and innovative design. Our data shows that consumers who discover us through apparel are more likely to become repeat customers versus those who start their journey with other categories. So we're confident this investment will have meaningful commercial benefits. And third, starting in spring-summer 2026, Hyder Ackerman's creative vision will extend across both Snow Goose and our mainline collections. To bring this to life, we're making meaningful investments to accelerate progress, starting with our product creation teams. By better connecting design, development, sourcing, and merchandising through a more integrated and collaborative process, we're already seeing faster speed to market. Our third operating imperative is driving strategic channel development through DTC excellence and elevated wholesale partnerships. For DTC, we're focused on the following, growing our store presence with new openings and refreshing existing locations to create an even better experience for our consumers, as well as taking our retail store execution strategy to the next level. That means we're doubling down on what we kicked off last year with a focus on smarter staffing tied to store traffic, hiring earlier for peak seasons, creating more consistent in-store experiences, and using our omnichannel tools to keep inventory flowing where and when it's needed most. Now to our digital initiatives. We will continue to enhance the site experience and personalization journey, making it easier for customers to discover, shop, and engage with our brand. We intend to bring our products to life through richer storytelling, offering a more seamless, unified experience across our full assortment, and improving how we connect our mainline and Snow Goose collections. By leveraging attribute-based merchandising and behavior-driven insights, we aim to personalize the consumer journey, delivering relevant products and experiences at every step in their digital journey. In wholesale, we're focused on showing up more consistently for our consumers, wherever they shop with us. We're investing in shop-in-shops and enhancing our showrooms to reflect the look and feel of our evolving brand. bringing our seasonal stories to life in a more immersive way. With sharper marketing and upgraded sales training for both in-person and virtual appointments, shopping in a multi-brand environment will feel more like Canada Goose than ever before. To summarize our commercial efforts, in a market full of noise and challenge throughout fiscal 2025, we stayed focused to own where we missed and deliver it where it counted most. We turned disciplined commercial execution into meaningful progress, and we're moving into fiscal year 2026 with strength. I'll now turn it over to Beth.