Canada Goose Holdings Inc

Hello, everyone. Thank you for joining us and welcome to the Canada Goose first quarter 2027 earnings call. After today's prepared remarks, we will host a question and answer session. If you'd like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Ana Raman. Ana, please go ahead.

Good morning everyone and thank you for joining us today on the Canada Goose Q1 fiscal 2027 earnings call. Today you'll hear from Danny Reiss, our chairman and CEO, Neil Bowden, chief financial officer, Carrie 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. Further information regarding these assumptions, risks, and uncertainties is included in our press release issued earlier today and 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 first quarter results ended June 28, 2026 with the same period ended June 29, 2025 and stated percentage 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.

Good morning everyone and thank you for joining us. Last quarter I shared our commitment to developing profit margin expansion in fiscal 2027. We are pleased to be off to a strong start. In the first quarter, we expanded adjusted EBIT margin over 10 percentage points year over year, marking our strongest first quarter adjusted EBIT margin since fiscal 2020. This performance reflects meaningful progress across the business. We delivered revenue growth of 9%, driven by strong demand for our expanding lifestyle product offering, including apparel, rainwear, and windwear. We also achieved healthy gross margin expansion in the season with a greater mix of spring summer categories, while higher channel margins and disciplined cost management further supported profitability. Together, these results demonstrate that the strategic investments we have made over the past several years are translating into stronger financial performance as planned. We've identified three key priorities for fiscal 27 to continue strengthening our year-round relevance with consumers while driving sustainable growth and profitability. Our first quarter performance continues to show these priorities are working. Our first priority is to deepen brand desire through more effective marketing and translate that into increased demand. In Q1, we continue to see the investments we set in motion last year contribute to stronger consumer engagement. Brand desire strengthened in mainland China and continental Europe. This highlights the positive response to the way we are bringing the brand to life through both compelling campaigns and elevated retail experiences. While traffic across parts of our store network remained lower than we would have liked, largely reflecting a soft macro environment, we continue to see encouraging indicators of consumer interest, including strong e-commerce profit growth and healthy customer acquisitions. We also continue to see desirability and awareness outperform competitive benchmarks in key markets. Together, these key indicators reinforce the strength of the brand and its ability to connect with both existing and with new consumers. Our focus remains on deepening consumer engagement within the brand and expanding our relevance across more events and occasions. As we continue to build demand in our spring summer categories alongside strong engagement across established categories, we believe our planned increase in marketing investment through the second and third quarters positions us well to convert that growing interest into sales. Our second priority is to scale a repeatable product playbook across seasons and drive greater year-round relevance. We are thrilled by the response to our spring summer collection, the largest in our history. The assortment was met with exceptional customer demand across direct-to-consumer and wholesale with apparel, which includes fleece, knitwear, shirts, and bottoms, as well as rainwear and windwear, leading category growth and expanding their share of first quarter revenue. Apparel, rainwear, and windwear accounted for nearly 40% of our first quarter revenue. To put that in perspective, these categories generated as much revenue this quarter as our entire company did in the first quarter eight years ago. That is a remarkable illustration of how Canada Goose has evolved. In fiscal 2022, these categories represented just 5% of our business. By fiscal 2026, they had grown to 15% of our total revenue and we continue to see significant opportunity ahead. What is notable is that this growth is additive. Downfield Outerwear also grew in the quarter in addition to strong customer response to both newer and established categories. This demonstrates our ability to build a more balanced business throughout the year while remaining true to what makes Canada Goose distinctive, which we believe is the right way to operate. Our third priority is to improve channel productivity and capital efficiency. We made meaningful progress against this priority in the first quarter. Customers increasingly engaged through direct-to-consumer and wholesale channels, contributing to strong growth in both parts of the business. Direct-to-consumer and wholesale channel segment margins also expanded, demonstrating that we are improving both the sales productivity and profitability of our business. Wholesale delivered an outstanding quarter and was one of the clearest proof points of the momentum we are seeing across the business. Revenue increased 65% year-over-year, driven by a strong order book and customer reorders through the quarter, as well as some shipping time. Thank you for watching. Direct-to-consumer revenue increased 7% year-over-year in the first quarter, led by strong e-commerce performance across all regions. DTC comparable sales declined 3% year-over-year, driven by the traffic pressures I previously mentioned. While these pressures were seen across the luxury retail industry, our teams responded with strong in-store execution. Conversion and units per transaction increased year over year, benefiting from actions we took to better align labor investments with customer demand, ongoing staff training, product availability, and continuing to enhance the in-store experience. We also continued to strengthen our retail network, opening four new stores during the quarter, bringing our permanent store count to 92, This included our new Vancouver location which showcases our latest design concept and further elevates the Canada Goose experience. In closing, the first quarter reflects the progress we are making to build a stronger, more diversified, and more profitable Canada Goose. We are expanding the reach of the brand, building a more balanced product portfolio, and creating new opportunities for growth across channels and occasions. The strong response to newer categories alongside continued demand for our iconic core offerings is helping drive both top-line growth and margin expansion, demonstrating that we can expand the reach of the brand while strengthening the profitability of the business. We are excited about the progress we are seeing and we remain focused on building on that momentum through continued execution. And with that, I will turn it over to Neil.