TORONTO — Canada Goose Holdings Inc. executives say tariffs are having little impact on the business, but the uncertainty they pose is great enough that the company is withholding its outlook for this fiscal year.
The Toronto-based maker of luxury parkas said Wednesday that it has so far escaped the brunt of the trade war because 75 per cent of its products are made domestically and comply with the Canada-U.S.-Mexico Agreement, nabbing them an exemption from U.S. tariffs.
"Our remaining production, which is primarily from Europe, is facing an increase in tariffs, but they will have minimal financial impact," president and chief operating officer Beth Clymer said on a call with analysts.
Many remarks offered by Clymer and Canada Goose's leadership team seemed designed to assuage worries that their business is bound to be upended by geopolitical tensions U.S. President Donald Trump sparked when he started throwing tariffs at trading partners.
The market appeared to respond well to the assurances. Canada Goose shares closed up more than 19 per cent at $14.79 on the Toronto Stock Exchange.
Canada Goose maintains it is ready to cope with any tariffs that may come its way because it has grown used to coping with unpredictability.
"While these are uncertain times, I want to emphasize that this is not the first time Canada Goose has successfully navigated uncertainty," CEO Dani Reiss said on the same call as Clymer.
"We've endured challenging times before, through 2008, through COVID, and each time we've emerged stronger."
To weather possible tariff troubles, Reiss is leaning on a four-part plan. It aims to double down on marketing, tweak Canada Goose's product mix to make it more relevant year-round, expand its business through store openings and renovations and find ways to bring more efficiency to the company.
Summing it up, Reiss said, "what works we will continue to amplify. What needs refinement we will evolve."
So far, what appears to be working for Canada Goose is its mainstay — the down-filled outerwear like winter coats that the business built its name and reputation on.
Carrie Baker, president of brand and commercial, said the category has seen a lot of recent growth, but an emerging success story lies in apparel, which spans knitwear, fleece and items like T-shirts and polos.
The apparel category was the fastest growing part of the Canada Goose business in its most recent quarter and fiscal year and has inspired a sense of brand loyalty, she said.
"Our data shows that consumers who discover us through apparel are more likely to become repeat customers versus those who start their journey with other categories," she said.
Her comments came shortly after Canada Goose revealed it earned $27.1 million in net income attributable to shareholders or 28 cents per diluted share for the quarter ended March 30, up from a profit of $5 million or five cents per share in the same period a year earlier.
On an adjusted basis, it earned 33 cents per diluted share in its fourth quarter, up from an adjusted profit of 19 cents per diluted share a year earlier.
Revenue for the quarter totalled $384.6 million, up from $358 million a year ago.
Chief financial officer Neil Bowden saw the quarter as "notably stronger."
It encompassed a period when shoppers tend to flock to Canada Goose for winter wear, but he said this year was "turbulent" because it came with a "deteriorating consumer backdrop and challenging global trade environment."
Because the company has a "limited line of sight" into how tariffs could rankle the business, he said it decided not to put out a financial outlook for the year and has instead resigned itself to "controlling those things that we can control."
This report by The Canadian Press was first published May 21, 2025.
Companies in this story: (TSX:GOOS)
Tara Deschamps, The Canadian Press
