By Adriano Marchese

Canada Goose's profit slipped in its fiscal third quarter as heavier marketing spending and one-time charges outweighed revenue gains in its key holiday period.

For the three months ended Dec. 28, the Canadian luxury outerwear company known for high-end parkas and cold weather apparel, on Thursday posted a decline in net income of 134.8 million Canadian dollars ($98.6 million), or C$1.36 a share. This was down from C$139.7 million, or C$1.42 a share, in the comparable quarter a year ago.

Adjusted earnings were C$1.43 a share, missing analyst forecasts of C$1.63 a share, according to FactSet

Total revenue rose 14% to C$694.5 million, ahead of analyst expectations of more modest growth to $659.1 million.

Direct-to-customer revenue rose 14% to C$591 million, led by strong retail and ecommerce performance in Asia Pacific and North America. On a comparable basis, DTC sales increased 6.3%.

Wholesale revenue increased 17% to C$88.3 million, largely due to shipment timing to its partners and delayed deliveries from the prior quarter fulfilled in the current quarter, it said.

The gross margin for the quarter was 74%, compared to 74.4%, which Chairman and Chief Executive Dani Reiss said was a deliberate decision to expand product relevance and speed up brand momentum.

"Our focus now is converting this demand into stronger profitability," Reiss said.

Selling, general and administrative costs rose to C$313.6 million from C$247.7 million a year earlier, largely due to a one-time bad debt charge tied to a U.S. wholesale partner, and higher retail and marketing costs.

The company held an inventory of C$408.7 million at the end of the quarter, flat compared with a year earlier.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 05, 2026 07:31 ET (12:31 GMT)

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