Canada Goose Holdings Inc

Thank you for standing by. My name is Amy, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Canada Goose, Inc. Second Quarter Fiscal 2026 Earnings Call. All participants have been placed in a listen-only mode. After the speaker's remarks, we will conduct a question and answer session. If you would like to join the queue to ask a question, simply press star followed by the number one on your telephone keypad. It is now my pleasure to turn the call over to Neil Bowden, Chief Financial Officer. You may begin.

Good morning, everyone, and thank you for joining us on the Canada Goose Q2 Fiscal 26 Earnings Call. Today, you'll hear from myself, Danny Reese, our Chairman and CEO, Kerry Baker, President of Brand and Commercial, and Beth Clymer, President, Chief Operating Officer. We'll start with prepared remarks and then answer questions. 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 and 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 the amounts discussed today are in Canadian dollars unless otherwise indicated. Please note the financial results described on today's call will compare second quarter results ended September 28, 2025, with the same period ended September 29, 2024, unless otherwise noted. With that, I'll turn the call over to Danny.

Thanks, Neil, and good morning, everyone. We're extremely pleased to share with you today our results of our second quarter. Our core direct-to-consumer business continues to show strong momentum across the board. Direct-to-consumer comparable sales grew 10% year-over-year with positive comps in all regions and notable bright spots in the United States and China. This marks 10 consecutive months of positive comps beginning last December as our operating imperatives drive stronger consumer engagement and results. I'll talk more about that in a moment. Wholesale represented about half of our total revenue in Q2, which is typically our largest wholesale quarter. Revenue for the quarter was in line with our expectations, slightly down year over year and flat through the first half. We see strong positive leading indicators in the channel with stronger sell through globally, improved inventory health and greater product diversity and excitement from our partners about our upcoming collections. Our continued top line strength is a result of disciplined execution across our four operating imperatives. First, expanding our product offering to enhance year-round relevance. Revenue from new styles and the percentage of total revenue more than doubled year over year, driven by new products in both our downfield and non-downfield categories. This drove notable growth in our D2C channel, with revenue from newness now representing roughly 40% of D2C sales for the quarter compared to 10% last year. We see significant runway for growth through product newness. Striking the right balance between new products and a very strong core is critical to our long-term success. Apparel remained our fastest-growing category as we continue to strengthen our year-round relevance and reach a broader range of consumer lifestyles and environments. Second, building brand heat through focused marketing investments. Our fall-winter 2025 campaign presents our brand with a fresh perspective rooted in both city life and the outdoors, amplifying the hero products through compelling storytelling, bold design, and seasonal relevance. We launched an exciting new product collaboration with Canadian basketball player and our global brand ambassador, Shea Gildas-Alexander, NBA champion and MVP. This was a cultural moment, fusing style and heritage in a way that speaks to today's global luxury consumer. We also announced an exciting new global brand ambassador, acclaimed actor Xu Quan Han. His impact on APAC and mainland China in particular have been immediate, grabbing engagement, reach, and relevance. Later this month, our Snow Goose collection returns at the height of our peak season with another bold statement of who we are and where we're going. We are speaking more frequently to our consumers, and it is really resonating. Third, driving business expansion through strategic channel development. We continue to deliver an elevated experience at every touch point. A direct-to-consumer comparable sales growth has been consistently strong, showcasing our integrated approach to store execution, inventory availability, and enhanced, more frequent marketing activities. Store conversion rates have increased year over year in every region for the third quarter in a row, a tangible indicator that our renewed focus on disciplined retail execution is working. We also strengthened our store network this quarter, opening one store in Macau and completing two strategic relocations, one in Beijing and most notably a new Paris store on Champs-Élysées. We are thrilled about our new location in Paris, strong traffic and luxurious adjacencies, and have introduced an elevated store design. I personally attended the grand opening just last week and two things stuck out to me. How busy the store was during the day with a full mix of consumers eager for our product and its elegant design elevated, yet unmistakably, Canada use. In wholesale, we are evolving our brand prevalence with more relevant assortments and elevated visual storytelling. This quarter, we unveiled a new brand expression through key in-store activations, such as the Fall-Winter 25 Chilliwack Immersive Pop-Up with an archive discovery experience at Selfridges in London and Gallery Lafayette in Paris. With these activations, we're bringing our brand to life in a consistent way everywhere. Our fourth operating objective is operating efficiently with pace and accountability. Neil is going to talk about this one in more detail, but I want to emphasize that we are very pleased with our top-line results so far this year, although our margin in the first half was pressured year over year. This was deliberate and driven by key investments in marketing and in our stores that will fuel growth in the second half and beyond. We're very happy to report that the second half is off to a strong start with positive DTC comps in October. We are entering our peak season well-positioned and with confidence across both store and e-commerce channels, and with a clear focus on translating that progress into sustained profitable growth and stronger margins. In closing, the combination of more consistent marketing, a stronger mix of in-season product newness, and sharper channel execution is driving improved financial performance and deeper consumer engagement. I'm confident in our direction and proud of the foundation that was built for long-term growth. On behalf of our senior leadership team, I want to again thank our Canada use teams around the world for their passion for the brand and relentless preparation for our peak season. And with that, I'll turn it over to Neil.