Canada Goose’s Stock Soars Despite Minimal Tariff Impact
TORONTO — Executives at Canada Goose Holdings Inc. assert that tariffs have not significantly affected their operations; however, due to the considerable uncertainty these tariffs bring, the company has decided to postpone issuing its forecast for this financial year.
The company based in Toronto, which specializes in high-end parkas, stated on Wednesday that it has largely avoided the impact of the trade war thus far since 75 percent of its items are produced within the country and meet the requirements set out in the Canada–United States–Mexico Agreement. This allows their products to be exempt from U.S. tariffs.
“Most of our ongoing production, largely originating from Europe, is encountering higher tariffs; however, these changes will have little effect financially,” stated President and Chief Operating Officer Beth Clymer during a conference call with analysts.
Several comments made by Clymer and Canada Goose’s executive leaders appeared aimed at easing concerns that their company might face significant disruption due to the geopolitical strains caused by U.S. President Donald Trump’s imposition of tariffs on trade allies.
The market seemed to react positively to the reassurances. Shares of Canada Goose ended the day up over 19 percent at $14.79 on the Toronto Stock Exchange.
Canada Goose asserts that they are prepared for any potential tariffs since they have become adept at handling uncertainty.
“Although we find ourselves in uncertain times, I want to highlight that this isn’t the first instance where Canada Goose has adeptly managed such situations,” stated CEO Dani Reiss during the same call with Clymer.
We have faced difficult periods previously, during 2008 and throughout the pandemic, and every time we came out even more resilient.
In order to navigate potential tariff issues, Reiss is relying on a multi-faceted strategy consisting of four key components. This approach focuses on intensifying marketing efforts, adjusting the Canada Goose product lineup to ensure relevance throughout the year, broadening their market presence via new store launches and refurbishments, and identifying methods to enhance operational efficiency within the company.
In summary, Reiss stated, “we will keep amplifying what proves effective. We will refine and develop what requires improvement.”
What seems to be successful for Canada Goose so far is its core product range—down-insulated outerwear such as winter jackets, which have been instrumental in establishing both its brand identity and credibility.
Carrie Baker, who leads the brand and commercial division as its president, mentioned that this sector has experienced significant expansion recently. However, she highlighted an up-and-coming success narrative within the realm of apparel, encompassing categories such as knitwear, fleece, and basics including T-shirts and polo shirts.
In its latest quarter and fiscal year, the apparel segment experienced the quickest growth within the Canada Goose business, fostering a strong sense of brand allegiance, as she mentioned.
“The information we have indicates that customers who find us via clothing items tend to return as repeat buyers compared to those who begin exploring our offerings from different sections,” she explained.
Shortly after Canada Goose announced earnings of $27.1 million in net income attributable to shareholders, equivalent to 28 cents per diluted share for the quarter ending March 30, which marks an increase from a profit of $5 million or five cents per share during the corresponding period the previous year, her remarks followed suit.
Adjusted for certain items, it reported earnings of 33 cents per diluted share in the final quarter, compared with an adjusted profit of 19 cents per diluted share in the same period the previous year.
The revenue for the quarter amounted to $384.6 million, an increase from $358 million recorded in the previous year.
The chief financial officer, Neil Bowden, viewed the quarter as “significantly more robust.”
During the time when consumers usually rush to buy winter clothing from Canada Goose, he mentioned that this year was marked by “turmoil,” attributed to a “declining consumer market” along with a “complex global trading situation.”
Since the firm has only a “restricted view” of how tariffs might disrupt operations, he stated they opted against providing a fiscal forecast for the year. Instead, they have chosen to focus on managing aspects within their control.
The report from The Canadian Press was initially released on May 21, 2025.
Companies featured in this story include (TSX:GOOS).
Tara Deschamps from The Canadian Press