Canada Goose Holdings Inc

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Good morning, everyone, and thank you for joining us today on the Canada Goose Q3 fiscal 2026 earnings call. Today, you'll hear from Danny Reese, our chairman and CEO, Neil Bowden, chief financial officer, Kerry Baker, president of brand and commercial, and Beth Clymer, president, chief operating officer. We'll start with prepared remarks from Danny and Neil, and then open up the call for 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 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 third quarter results ended December 28, 2025 with the same period ended December 29, 2024. and stated percent changes are in constant currency, unless otherwise noted. Lastly, our commentary today will also include certain non-IFRS financial measures, which are reconciled at the end of our earnings press release. With that, I'll turn the call over to Danny.

Thanks, Anna, and good morning. At the start of fiscal 2026, we made a deliberate decision to invest ahead of demand. We did that to unlock long-term potential by expanding product relevance, strengthening brand equity, and building the channel and geographic foundations we need for long-term growth. Those choices contributed meaningfully to our top line in Q3, which you can see clearly in our D2C business, where we delivered our fourth consecutive quarter of positive comparable sales growth. This is tangible proof that these strategic investments are fueling sustainable top-line growth. We delivered strong revenue growth across channels and regions in our most impactful quarter, reflecting the momentum building behind the brand and the high level of execution across the whole company. These results also reinforce the consistency of the levers we are activating through our intentional investments, driving traffic and conversion and evolving product mix. While we are pleased with our top line performance and our brand momentum, our adjusted EBIT margin contracted meaningfully. Neil will walk you through the drivers behind the margin movement and actions underway to rebuild profitability. We have made real progress in reducing corporate overhead in recent years, but Q3 showed that we have more work to do. I am committed to returning Canada use to margin expansion, and I'm confident in our ability to do so in fiscal 27. To be clear, delivering strong and sustainable profitability is my top priority for our organization. The best indicator of our long-term trajectory is our progress against the four operating imperatives we set out at the start of the year. And here's where we stand. First, expanding our product to enhance year-round relevance. In Q3, our expanded year-round assortment continued to revenant with consumers. Letterweight styles drove growth while downfield outerwear remains a clear market leader in warmth, posting solid gains. Styles featuring newer fabrics like Endura Luxe and wool did exactly what we intended, elevating design, performance, and consumer response. Newness, both in the form of new styles like our bomber jackets and new fabrics and colorways and cores to the west, performed strongly. Revenue from Newness doubled year over year, grabbing high unit sales velocity across lighter weight styles, including our apparel assortment and snow goose collection designed by Hyder Ackerman. Snow Goose also serves as a halo for the main collection and led to brand equity enhancement across the line. This broader offering contributed to a lift in both store traffic and conversion. Consumers aren't just responding to new styles and fabrications. They're responding to the elevated design direction we brought to the line this year. That's central to our long-term goal of growth in all seasons, building lasting relationships with customers, and leveraging the brand's economic strength. We're very encouraged by this momentum and are progressing well with our spring-summer 26th collection and upcoming campaigns, which will now start to feature greater design oversight from Hyder. Second, building brand heat through focused marketing investments. In Q3, our marketing investments delivered clear commercial impact. We increased visibility and cultural relevance through global campaigns and high-value activations over three key marketing moments. the launch of our Fall, Winter 25, and Snow Goose collections, and our holiday season campaign. This integrated approach drove higher quality traffic across retail and digital channels globally and supported the top-line performance we delivered. Brand desire, brand momentum, and social media velocity all moved in the right direction, supported by the intentional shift we made towards upper funnel investment this year. Brand desire exceeded our competitive benchmark in our key focus markets. especially mainland China, with both paid and non-paid reach, as well as earned mentions outperforming targets. At the same time, lower funnel efficiency strengthened significantly. Despite a planned reduction in lower funnel spend, we saw a year-over-year increase in repeat customers and delivered higher return on ad spend, reinforcing brand heat and conversion. Together, this shows that our marketing strategy is working as designed, building brand heat for the long-term while maintaining disciplined efficiency in the lower funnel. We intend to continue our planned brand investments through the remainder of this fiscal year and build on our success to date, starting with our second winter snow goose drop, which launched in mid-January. As we do, we're sharpening marketing efficiency and measurement. We're tightening our media mix for more scalable impact, improving targeting, and increasing alignment of our measurement architecture across the entire organization in order to achieve greater capital allocation discipline. Third, driving business expansion through strategic channel development. I'll first address our direct-to-consumer channel. Direct-to-consumer revenue grew 13% in the third quarter, with comparable sales up 6% over last year. North America and Asia Pacific delivered double-digit growth. In mainland China, our teams drove high conversions through the quarter, proof of both brand strength and strong retail execution. In Europe, we elevated key flagships, including the strategic relocation of a Milan store in the quarter, which has stronger adjacencies and with that is seeing higher traffic quality. We continue to refine our retail network across other key regions in the third quarter, opening two stores in China and a new store in Chicago. Operationally, the team has delivered outstanding service and stronger visual merchandising. Our inventory was well positioned across channels And we responded quickly to the demand signals we saw through the fall, adjusting buys and production to meet that strength. While we had pockets of sold-out sales, that scarcity is part of what has always made our brand powerful. This has been a meaningful step forward in how we manage inventory with more disciplined planning and faster response across the business. Online improvements in discovery, navigation, speed, and storytelling all contributed to stronger engagement and lower return rates across most regions. In our wholesale channel, revenue grew 14% in the third quarter, largely due to shipments shifting from Q2 to Q3 and incremental in-season demand. We also saw improved sell-through of our fall-winter collection, supporting positive sales trends in the quarter. Our disciplined approach remains consistent. Branded line partners, clean channel inventory, and product newness, all contributing to healthy order books for both spring and fall 26 that reflect stronger demand for our year-round assortment. Wholesale continues to play a strategic role in brand elevation and control distribution, and we are pleased with our progress here in fiscal 2026. And fourth, operating efficiently with pace and accountability. In fiscal 2026, we deliberately chose to invest in revenue-driving areas. These choices strengthened demand, but we did not strike the balance right with margin, and that showed up as cost inflation across parts of the business. Q3 made that clear. SG&A grew ahead of revenue and labor costs ran above productivity. We now sharpen our focus on leverage. Importantly, we've driven a second consecutive year of leverage in corporate overhead costs, reversing what had previously been a source of margin decline. This improvement reflects both tighter cost discipline and strong revenue growth, and it gives us a solid foundation to build from. We're also embedding greater operating discipline across the company and continue to evolve our leadership team to ensure we are fit for purpose. In closing, the third quarter demonstrated the strength of our brand and progress of our strategy. We remain focused on executing with precision, improving profitability, and driving sustainable long-term growth. Thank you to our teams for everything you put into this peak season. Your passion, resilience, and commitment move this company forward every single day. I'll pass it to Neil to provide our third quarter financial update.