Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome you to the Canada Goose Third Quarter Fiscal Year 2026 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Ana Raman, Vice President, Investor Relations. Ana, you may begin.

Good morning, everyone, and thank you for joining us today on the Canada Goose Q3 Fiscal 2026 Earnings Call. Today, you'll hear from Dani 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 Dani 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. You can read about these assumptions, risks and uncertainties in our press release issued this morning and our filings with U.S. and Canadian regulators. These documents are also 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 third quarter results ended December 28, 2025, with the same period ended December 29, 2024, and stated percent 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 Dani.

Thanks, Ana, and good morning. At the start of fiscal 2026, we made a deliberate decision to invest ahead of demand. We did that to unlock long-term potential by expanding product relevance, strengthening brand equity and building the channel and geographic foundations we need for long-term growth. Those choices contributed meaningfully to our top line in Q3, which you can see clearly in our DTC business, where we delivered our fourth consecutive quarter of positive comparable sales growth. This is tangible proof that these strategic investments are fueling sustainable top line growth. We delivered strong revenue growth across channels and regions in our most impactful quarter, reflecting the momentum building behind the brand and the high level of execution across the whole company. These results also reinforce the consistency of the levers we are activating through our intentional investments driving traffic and conversion and evolving product mix. While we are pleased with the top line performance and our brand momentum, our adjusted EBIT margin contracted meaningfully. Neil will walk you through the drivers behind the margin movement and actions underway to rebuild profitability. We have made real progress in reducing corporate overhead in recent years, but Q3 showed that we have more work to do. I am committed to returning Canada Goose to margin expansion, and I'm confident in our ability to do so in fiscal '27. To be clear, delivering strong and sustainable profitability is my top priority for our organization. The best indicator of our long-term trajectory is our progress against the 4 operating imperatives we set out at the start of the year, and here's where we stand. First, expanding our product to enhance year-round relevance. In Q3, our expanded year-round assortment continued to resonate with consumers. Lighter-weight styles drove growth while down-filled outerwear remains a clear…

Thanks, Dani, and good morning. First, I'll cover the details of our third quarter performance and then outline the concrete actions underway to deliver operating margin expansion over the long term. Revenue for the third quarter increased 13% year-over-year to $695 million, led by strong growth in both DTC and Wholesale in North America and Asia Pacific. Turning to channel performance. DTC revenue increased 13%, supported by double-digit growth in North America and Asia Pacific. Comparable sales grew 6%, marking the fourth consecutive quarter of positive comps with contributions from both stores and e-commerce channels. Sales were strong across all major product categories. Wholesale revenue increased 14% in Q3, with revenue up 3% on a year-to-date basis over the same period last year, ahead of our expectations, supported by elevated brand positioning with our partners, well-managed inventory levels and healthier demand for our year-round assortment. Revenue in our other channel was $15 million, roughly flat versus $14 million a year ago. Moving to regional trends. In North America, revenue grew 20%. Comparable sales increased in the high single digits, supported by strong traffic in both Canada and the U.S. and conversion improvement. Retail execution was sharper this quarter, underpinned by staffing investments and improved inventory positioning. E-commerce also contributed to positive DTC performance, benefiting from solid traffic trends throughout the quarter. Wholesale benefited from shipment timing and incremental orders and other channel performance was also positive, albeit minimal in the quarter. In APAC, revenue increased 12%, led by strong DTC performance and high single-digit comp growth driven by exceptional volume. Mainland China was the largest contributor with robust consumer demand, strong e-commerce momentum on Douyin and Tmall and conversion gains in several key stores. In EMEA, revenue declined 3% year-over-year, reflecting continued softness in the U.K. consumer environment. Continental Europe…

[Operator Instructions] Your first question comes from the line of Oliver Chen with TD Cowen.

As we look at your DTC progress, what was the complexion like for traffic relative to conversion and any callouts? Also on all the progress you're making on non-parka as well, I would love your thoughts on catalysts ahead there and also the things we should note on the margin contributions to that. And then finally, Greater China and the focus on that region, how have trends been in terms of sequential improvement and run rates that you're seeing with that volatile market?

Oliver, thanks for all of your questions. I'm going to try to remember them all. First one was on traffic and conversion in DTC. So as you talked about, we made a specific investment in labor investment in those stores, and we saw that deliver. And so global store conversions has trended higher now for 4 consecutive quarters. We're seeing that being led by APAC and North America. So EMEA conversion lagged a little bit. But as we talked about, lots of initiatives underway to improve that and mitigate sort of the broader macro pressures that we see mostly in the U.K. So in e-com, we also saw strong traffic. And again, this was a direct result of the investment that we made in marketing. The job in marketing was to drive brand heat, bring back some momentum, make sure that people are seeing the new products and just showing up in a bolder way. And so that did drive the traffic. So that investment is paying off. So we're very happy with the traffic we're seeing, conversion improving, and we want to see that continue into the Q4 and beyond. In terms of products, so non-parka, we heard Neil talk about how we are making great progress with expanding our assortment being more relevant 360 days of the year. And so we saw more growth in our other categories, so non-heavyweight down. We still see meaningful growth. We saw really strong response to newness, whether that's actually new styles in some of our core categories or newness, meaning our classic bombers, our classic bestsellers in new fabrications, new colorways. So we really -- I'm very happy with the response that we saw in both of those. But the intention is to make sure that we have a product assortment that is relevant outside of just Q3, and that's what we're doing. That's what we're seeing. And from -- okay, Greater China, that was the other one that you asked about. So we're seeing -- that's one of our strongest markets. When you look at the investment that we've been making for a number of years, what we look at when we see -- when we look at the competitive set, how we're doing relative to that, we are seeing demand very strong. So the performance in Mainland China specifically continues to perform well. We see strong digital momentum. We see healthy store performance. That's both better traffic, improving conversion and again, that really strong response to our newness. So very happy with what we're seeing there. The shift, I think, in terms of Lunar New Year, we saw a bit of a shift of demand out of December and closer and moving into Q4. And so we've started to see that pick up. And as we get closer and closer to the Lunar New Year holiday, we expect that to continue.

Oliver, there was a part of your question we struggled to hear a bit. Can you repeat that one for us?

If there was any aspect of your question, I...

Pardon the interruption. He has disconnected. Your next question comes from the line of Rick Patel with Raymond James.

This is Suraj Malhotra on for Rick Patel. So how would you describe the level of newness in stores right now? Specifically, what share of today's floor set is new, year-round relevant product versus core product? And looking ahead, are you comfortable with where the assortment and merchandising sits today? Or do you plan to increase the mix of newness to drive more year-round relevance?

Thanks, Suraj. So we're really happy with the assortment. So I'll kind of repeat what was said in some of the remarks that expanding product relevance, that is working. And so the newness, lighter weight, year-round categories, they all outperformed heavyweight down, but that shift is intentional. And so in terms of newness, the newness performance revenue doubled year-over-year. And so that's intentional. We want to bring newness to the floor. We want to be able to drive repeat visitors, bring people back to see something new. And the commentary around newness, I just want to make clear, newness, we see that as it needs to resonate as newness to the consumer. It doesn't necessarily mean we're introducing a ton of new styles. It means we're animating some of our best sellers, which I just talked about. So that is working. The response to -- people love the Chilliwack. We've had that in our product line for 20 years, but now they get it in a new fabric. Now they get it in a new puffer version. And so that is working. So I would say the balance in terms of what we're putting in store and online is a mix of that. How do we make sure that people that know and think about Canada use for protection, for work, can come into a store and get what they need as well as, "Wow, I'm surprised by something that I never knew we offered." So apparel, our everyday, our rain categories, all of our major categories are growing. And so we're really pleased with that response, and we expect that to continue. We're watching it carefully. Obviously, we don't want to get over skewed. We don't want to have a too big an assortment for the size of our offering -- our stores. But right now, we're feeling very comfortable with that mix.

Your next question comes from the line of Jonathan Komp with Baird.

Neil, helpful commentary on some of the margin initiatives you're kicking off here. I guess bigger picture stepping back, I think at one point, the discussion was around 50% plus incremental margin on DTC revenue recovery. So maybe just a broader postmortem, what's gone differently? And how quickly can you address some of the issues today on the operating margin, especially since there's 3 quarters ahead of lower seasonal sales volumes here, which typically have been tough to show progress?

Jon, this is Beth. I'll take that one. Thanks for your question. I guess if we step back, it's worth framing the margin journey we've been on over the past 2 years, right? Priority #1, Phase 1 of that journey was to rightsize corporate costs. We did that, that is sustaining and is serving now for the second year in a row is really nice source of leverage. Second, driving sustained positive comps, reinvigorating that brand heat and excitement through those first 3 operating imperatives around product and marketing and D2C execution. And then third, leveraging that strength to drive meaningful margin improvement, right? Those are the 3 steps. We've achieved step 1. This year is the year we are excited to be able to say we have decisively achieved step 2. We've delivered our fourth straight quarter of positive comps. We've got really nice positive indicators in terms of sell-through new products, like you just heard from Carrie, brand heat measures like you heard from Dani in our opening remarks. So we feel that we've really got step 2 locked. Now the focus can shift to step 3. We're not done with step 3, right? So your question around the incremental profit flow-through of D2C growth, that's what comes in step 3. And so the margin results this year, I think, are helpful to see in that context. So this year, obviously, this quarter, in particular, we saw some unusual margin compression from some of these discrete nonrecurring items. Those make up 2/3 of the SG&A margin compression in the quarter. So very material. When you put those aside, we did still compress margin, SG&A as a percent of revenue by 150 basis points. But that is all the margin initiatives you heard from Neil in our opening remarks are all about improving that, driving store cost efficiency, marketing efficiency, sustaining the corporate cost leverage, getting gross margin, those are the things that will get us back towards that really attractive D2C flow-through that you described. There's nothing fundamental to our economic model that doesn't make that level of flow-through possible. But part of the reason you didn't see us achieve it yet in this quarter was that investment in the things to accomplish step 2 and really drive that sustainable positive comp growth.

Okay. I appreciate that. And then just as a follow-up around the practice for guidance here. I think part of the issue for the December quarter is it's hard to model out some of the discrete issues without more clarity. So just any thoughts still on not providing any forward visibility? And specifically on the level of margin expansion for fiscal 2027, it would be very helpful to give some context around that comment in terms of quantifying the opportunity?

Sure. Yes. I mean, Jon, I think, obviously, we're just about through the end of this fiscal year. I'll give a bit of direction on what we're looking at for performance to date in Q4. As we usually do when we get to the end of the fiscal, we'll talk about what our plans are for fiscal '27. And at that time, look to give some more color and just have to stay patient for at least one more quarter.

Your next question comes from the line of Brooke Roach with Goldman Sachs.

Can you help contextualize the relative contribution you expect to see from each of the 3 focus areas for operating margin into fiscal '27? What gives you confidence that you can maintain the strong top line comp and conversion momentum that you've achieved this year as you start to adjust the labor model and reduce marketing spend?

Thanks for the question, Brooke. The investments we made this year and last year are investments that we believe when we made them, and we still believe now that we are seeing their impact are investments that will fuel growth in the short, medium and long term. So for example, this year, our marketing investments were very focused in the top of funnel. Changing how we show up to the consumers, changing where we show up to the consumers, the message that -- those aren't investments that pay back in the month or even in the quarter of the year. Those are investments that are changing the hearts and minds of consumers and pay back over time. And so that gives us -- and some of those are onetime investments that are repositioning, how product photography shows up, things like that. So we can pull back those investments without actually changing the frequency at which our media shows up in front of consumers, et cetera. And so there are -- because the nature of these investments were medium and long-term payback, that means that we can begin to get some leverage on them without impacting growth. And in fact, the impact of those investments will build. Same thing is true in store labor. A lot of our store labor investment this year, yes, was more staffing in critical time periods than peak, but it was also more labor in the stores in June, July, August, September so that the store brand ambassadors were trained up. That training bear fruit next year and the year after. And so these are investments that were incremental to the P&L this year, but are normal course and effect, sources of leverage as the effectiveness of them build. And so that's how we get comfortable with that. It's not like all of our incremental investment this year was a whole bunch of paid media to drive in-month conversion, right? It was much more strategic substantive focus on brand relevance, which is what gives us confidence that we can moderate those and have it become a source of leverage while simultaneously driving the top line growth. In terms of relative contribution, there's massive opportunity in all of these. And so our focus is across all of them. I think it would be premature to comment on which one might contribute more or less or faster or slower. But we have -- we believe we have real opportunity in each of these areas. And more importantly, we believe we have the plans to execute and drive margin improvement in all 3 of those focus areas.

That concludes our question-and-answer session. I will now hand it back over to the management for closing comments.

So thanks, everyone, for joining us today, and please reach out to Investor Relations if you do have further questions. We'll close the call with that. Thank you.

Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation, and you may now disconnect.