Shares of Canada Goose Holdings (GOOS) plummeted 15.55% in Thursday's trading session after the luxury apparel maker reported disappointing second-quarter results that fell short of analyst expectations. The company's efforts to drive sales through increased marketing and promotional strategies failed to deliver in a weak demand environment, leading to concerns about its growth trajectory.

For the fiscal second quarter ended September 28, Canada Goose reported:

• Revenue of C$272.6 million, up 1.8% year-over-year but below the analyst consensus of C$279.3 million
• A net loss of C$15.2 million, or C$0.16 per share, compared to a profit of C$5.4 million, or C$0.06 per share, in the same period last year
• Adjusted loss per share of C$0.14, missing analyst estimates of C$0.11 per share

The company's performance was impacted by several factors:

• Wholesale revenue dipped 1% to C$135.9 million, reflecting softer demand in this channel
• While direct-to-consumer (DTC) revenue increased 21.8% to C$126.6 million, driven by comparable sales growth and new store openings, it wasn't enough to offset weaknesses elsewhere
• Operational spending rose 16% to C$187.7 million, primarily due to preparations for the upcoming peak shopping season, including hiring and training store staff, new retail locations, and larger advertising campaigns
• Adjusted profit margin contracted to -5.2% from 0.9% a year ago, highlighting the pressure on profitability

Canada Goose's strategy to broaden its product assortment beyond its core high-margin parkas and increase marketing spend has led to margin pressure. The company did not provide specific financial guidance for future periods, which may have added to investor uncertainty.

Despite the disappointing results, Canada Goose announced the renewal of its normal course issuer bid to repurchase up to 10% of its public float, signaling confidence in its long-term prospects. However, this was not enough to assuage investor concerns in the near term.

The sharp stock decline reflects growing worries about Canada Goose's ability to navigate the challenging retail environment and maintain growth while managing costs. As the company enters its critical winter season, all eyes will be on whether its increased marketing investments and expanded product lines can drive sales and return the company to profitability.