Canada Goose Holdings Inc. and its subsidiaries (the “Company”) design, manufacture, and sell performance luxury apparel for men, women, youth, children, and babies. The Company’s product offerings include various styles of down-filled outerwear, rain and everyday jackets, fleece, vests, apparel, footwear, and accessories for the fall, winter, and spring seasons. The Company’s head office is located at 100 Queens Quay East, Toronto, Canada, M5E 1V3. The use of the terms “Canada Goose”, “we”, and “our” throughout these notes to the condensed consolidated interim financial statements ("Interim Financial Statements") refer to the Company.

Canada Goose is a public company listed on the Toronto Stock Exchange and the New York Stock Exchange under the trading symbol “GOOS”. The principal shareholders of the Company are investment funds advised by Bain Capital LP and its affiliates (“Bain Capital”), and DTR LLC ("DTR"), an entity indirectly controlled by the Chairman and Chief Executive Officer of the Company. The principal shareholders hold multiple voting shares representing 52.5% of the total shares outstanding as at December 28, 2025, or 91.7% of the combined voting power of the total voting shares outstanding. Subordinate voting shares that trade on public markets represent 47.5% of the total shares outstanding as at December 28, 2025, or 8.3% of the combined voting power of the total voting shares outstanding.

The Interim Financial Statements are prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”), specifically IAS 34, Interim Financial Reporting. Certain information, which is considered material to the understanding of the Interim Financial Statements and is normally included in the audited annual consolidated financial statements prepared in accordance with IFRS Accounting Standards, is not provided in these notes. These Interim Financial Statements should be read in conjunction with the Company's audited annual consolidated financial statements for the year ended March 30, 2025.

The Interim Financial Statements were authorized for issuance in accordance with a resolution of the Company’s Board of Directors on February 4, 2026.

The Company's fiscal year is a 52 or 53-week reporting cycle with the fiscal year ending on the Sunday closest to March 31. Each fiscal quarter is 13 weeks for a 52-week fiscal year. Fiscal 2026 is a 52-week fiscal year.

The Company classifies its business in three operating and reportable segments: Direct-to-Consumer ("DTC"), Wholesale, and Other. The DTC segment comprises sales from our Company-owned retail stores and through country-specific e-Commerce platforms available across numerous markets, which includes the recommerce platform Canada Goose Generations, currently available in the United States and Canada.

The Wholesale segment comprises sales made to a mix of retailers and international distributors, who are partners that have exclusive rights to an entire market, and travel retail locations.

The Other segment comprises revenue and costs that are not related to the Company’s DTC or Wholesale segments, such as sales to employees and friends and family sales.

The business is seasonal, and we have historically realized a significant portion of our Wholesale revenue and operating income in the second and third quarters of the fiscal year and DTC revenue and operating income in the third and fourth quarters of the fiscal year. Thus, lower-than-expected revenue in these periods could have an adverse impact on our annual operating results.

Cash flows from operating activities are typically highest in the third and fourth quarters of the fiscal year due to revenue from the DTC segment and the collection of trade receivables from Wholesale revenue earlier in the year. Working capital requirements typically increase as inventory builds. Borrowings have historically increased in the first and second quarters and been repaid in the balance of the year.

The accounting policies and critical accounting estimates and judgments as disclosed in the Company's audited annual financial statements for the year ended March 30, 2025 have been applied consistently in the preparation of these Interim Financial Statements except as noted below. The Interim Financial Statements are presented in Canadian dollars, the Company’s functional and presentation currency.

Certain comparative figures have been reclassified to conform with the current year presentation.

Management identified an immaterial reclassification to the interim statement of financial position as at December 29, 2024, the annual statement of financial position as at March 30, 2025, and related note disclosures for comparative figures pertaining to sales taxes receivables presented in trade receivables, and sales taxes payables presented in accounts payable and accrued liabilities. Management reclassified $7.9m and $15.2m from accounts payable and accrued liabilities to trade receivables as at December 29, 2024 and March 30, 2025, respectively. These reclassifications did not impact the interim statement of income, the annual statement of income, and earnings per share for either reporting period. Comparative figures have been appropriately reclassified in the interim statement of financial position as at December 29, 2024, annual statement of financial position as at March 30, 2025, and related note disclosures.

The Interim Financial Statements include the accounts of the Company and its subsidiaries and those investments over which the Company has control. All intercompany transactions and balances have been eliminated.

In May 2024, the International Accounting Standards Board ("IASB") issued amendments to IFRS 9, Financial Instruments and IFRS 7, Financial Instruments: Disclosure to clarify the timing of recognition and derecognition of financial assets and liabilities, the settlement of financial liabilities using an electronic payment system, and the assessment of contractual cash flow characteristics, classification and disclosure of financial assets with environmental, social, and governance linked or other contingent features. The IASB also amended the disclosure requirements for investments in equity instruments designated as fair value through other comprehensive income and added disclosure requirements for financial instruments with contingent features. These amendments are effective for annual reporting periods beginning on or after January 1, 2026. The Company is currently evaluating the impact of these amendments on the consolidated financial statements.

The Company has three reportable operating segments: DTC, Wholesale, and Other. The Company measures each reportable operating segment’s performance based on revenue and segment operating income, which is the profit metric utilized by the Company's chief operating decision maker, the Chairman and Chief Executive Officer, for assessing the performance of operating segments. No single customer contributed 10 per cent or more to the Company’s revenue for the third and three quarters ended December 28, 2025 and December 29, 2024.

The following table presents key performance information of the Company’s reportable operating segments:

The following table reconciles the Company’s reportable total segment operating income to income (loss) before income taxes:

The following table summarizes depreciation and amortization in selling, general and administrative ("SG&A") expenses of each reportable operating segment and depreciation and amortization included in corporate expenses:

			Third quarter ended									Three quarters ended
(in millions of Canadian dollars)			December 28, 2025			December 29, 2024						December 28, 2025			December 29, 2024
			$			$						$			$
Depreciation and amortization expense
DTC			25.6			24.4						72.4			73.2
Wholesale			1.1			0.8						2.8			2.7
Other			0.3			—						0.7			0.6
Total segment depreciation and amortization expense			27.0			25.2						75.9			76.5
Corporate expenses			3.4			4.4						11.5			12.5
Total depreciation and amortization expense			30.4			29.6						87.4			89.0

The Company determines the geographic location of revenue based on the location of its customers.

1Greater China comprises Mainland China, Hong Kong, Macau, and Taiwan.

2EMEA comprises Europe, the Middle East, Africa, and Latin America.

The Company’s non-current, non-financial assets (comprising property, plant and equipment, intangible assets, and right-of-use assets) are geographically located as follows:

1Greater China comprises Mainland China, Hong Kong, Macau, and Taiwan.

2EMEA comprises Europe, the Middle East, Africa, and Latin America.

The following table presents details for the calculation of basic and diluted earnings per share:

1Subordinate voting shares issuable on exercise of stock options are not treated as dilutive if including them would decrease the loss per share. Accordingly, for the third and three quarters ended December 28, 2025, nil and 1,908,126, respectively, potentially dilutive shares have been excluded from the calculation of diluted loss per share because their effect was anti-dilutive (third and three quarters ended December 29, 2024 - nil and nil shares, respectively).

Inventories are written down to net realizable value when the cost of inventories is estimated to be unrecoverable due to obsolescence, damage, or declining rate of sale.

The breakdown of the provision for inventory obsolescence is presented as follows:

Amounts charged to cost of sales comprise the following:

The following table presents changes in the cost and the accumulated depreciation of the Company’s right-of-use assets:

The following table presents the changes in the Company's lease liabilities:

Lease liabilities are classified as current and non-current liabilities as follows:

For the third and three quarters ended December 28, 2025, $25.4m and $36.8m, respectively, of lease payments were not included in the measurement of lease liabilities (third and three quarters ended December 29, 2024 - $20.1m and $26.6m, respectively). The majority of these balances related to short-term leases and variable rent payments, which are expensed as incurred.

During the first quarter ended June 29, 2025, an arbitration that took place in fiscal 2024 concluded between the Company and a former supplier of the Company in connection with a previously announced commercial dispute relating to the termination of a contract in 2021. The arbitration resulted in an unfavourable judgment against the Company with financial compensation to be awarded to the former supplier. As a result, the Company was required to make a one-time payment to the former supplier of USD32.0m ($43.8m), inclusive of legal costs, which was recognized in SG&A expenses in the interim statements of income (loss).

The award and legal costs were paid to the former supplier during the second quarter ended September 28, 2025.

Refer to “Note 23. Litigation and other contingencies” in our fiscal 2025 Annual Financial Statements for previously disclosed information on the matter.

Accounts payable and accrued liabilities consist of the following:

Provisions are classified as current and non-current liabilities based on legal rights which exist as at the reporting date as follows:

The Company has an agreement with a syndicate of lenders for a senior secured asset-based revolving credit facility ("Revolving Facility") in the amount of $467.5m, with an increase in commitments to $517.5m during the peak season (June 1 - November 30). The Revolving Facility matures on May 15, 2028. Amounts owing under the Revolving Facility may be borrowed, repaid and re-borrowed for general corporate purposes. The Company has pledged substantially all of its assets as collateral for the Revolving Facility. The Revolving Facility contains financial and non-financial covenants which could impact the Company’s ability to draw funds.

The Revolving Facility has multiple interest rate charge options that are based on the Canadian prime rate, Canadian Overnight Repo Rate Average, the lenders' Alternate Base Rate, European Base Rate, secured overnight financing rate ("SOFR"), or EURIBOR rate plus an applicable margin, with interest payable the earlier of quarterly or at the end of the then current interest period (whichever is earlier).

As at December 28, 2025, the Company had repaid all amounts owing on the Revolving Facility (December 29, 2024 - no amounts owing, March 30, 2025 - no amounts owing). As at December 28, 2025, no interest and administrative fees remain outstanding (December 29, 2024 - no amounts owing, March 30, 2025 - no amounts owing). There were deferred financing charges of $0.6m as at December 28, 2025 and were included in other long-term liabilities (December 29, 2024 - $0.8m, March 30, 2025 - $0.7m). As at and during the three quarters ended December 28, 2025, the Company was in compliance with all covenants.

The Company had unused borrowing capacity available under the Revolving Facility of $266.3m as at December 28, 2025 (December 29, 2024 - $309.5m, March 30, 2025 - $134.0m).

The revolving credit commitment also includes a letter of credit commitment in the amount of $25.0m. As at December 28, 2025, the Company had letters of credit outstanding under the Revolving Facility of $8.4m (December 29, 2024 - $1.6m, March 30, 2025 - $4.4m).

The Company has a senior secured loan agreement with a syndicate of lenders that is secured on a split collateral basis ("Term Loan") alongside the Revolving Facility. On August 21, 2025, the Company entered into a refinancing amendment to its existing Term Loan ("Amendment to Term Loan").

Following the Amendment to Term Loan, the aggregate principal amount of the Term Loan Facility was USD300.0m, with quarterly repayments of USD0.75m on the principal amount which will commence in the first quarter of fiscal 2027, and a maturity date of August 23, 2032. The applicable interest rate applied to SOFR borrowings was SOFR+3.50% with SOFR subject to a floor of 0.50%. The Company has pledged substantially all of its assets as collateral for the Term Loan. The Term Loan contains financial and non-financial covenants which could impact the Company’s ability to draw funds. As the Term Loan is denominated in U.S. dollars, the Company remeasures the outstanding balance plus accrued interest at each balance sheet date.

The Company accounted for the Amendment to Term Loan as a debt extinguishment due to a change in the syndicate lenders, decrease in the interest rate and extension of maturity date. As a result, deferred financing costs of USD0.3m related to the previous Term Loan were written-off during the second quarter ended September 28, 2025 and recorded to net interest, finance and other costs in the interim statements of income (loss). The Company incurred transaction costs related to the Amendment to Term Loan of $5.7m (USD4.1m) and an original issue discount ("OID") of $1.0m (USD0.8m), which are being amortized using the effective interest rate method over the new term to maturity.

Refer to “Note 15. Financial risk management objectives and policies” for details on amendments to derivative transactions related to the Amendment to Term Loan.

As at December 28, 2025, the Company had USD300.0m (December 29, 2024 - USD288.8m, March 30, 2025 - USD288.0m) aggregate principal amount outstanding under the Term Loan. As at and during the three quarters ended December 28, 2025, the Company was in compliance with all covenants.

The amount outstanding with respect to the Term Loan is as follows:

A subsidiary of the Company in Mainland China has uncommitted loan facilities in the aggregate amount of RMB560.0m ($109.1m) ("Mainland China Facilities"). The term of each draw on the loans is one, three or six months or such other period as agreed upon and shall not exceed 12 months (including any extension or rollover). The interest rate on each facility is equal to 3.1% or the loan prime rate of 1 year, minus a marginal rate between 0.2% to 0.6%, and payable quarterly. Proceeds drawn on the Mainland China Facilities are being used to support working capital requirements and build up of inventory for peak season sales. As at December 28, 2025, the Company had no amounts owing on the Mainland China Facilities (December 29, 2024 - $30.1m (RMB152.3m), March 30, 2025 - no amounts owing).

A subsidiary of the Company in Japan has a loan facility in the aggregate amount of JPY4,000.0m ($34.9m) ("Japan Facility") with a floating interest rate of Japanese Bankers Association Tokyo Interbank Offered Rate plus an applicable margin of 0.30%. The term of the facility is 12 months and each draw on the facility is payable within the term. Proceeds drawn on the Japan Facility are being used to support build up of inventory for peak season sales. As at December 28, 2025, the Company had $11.4m (JPY1,300.0m) owing on the Japan Facility (December 29, 2024 - $35.2m (JPY3,850.0m), March 30, 2025 - no amounts owing).

Short-term borrowings consist of the following:

Short-term borrowings are all due within the next 12 months. The Term Loan amount above reflects the quarterly principal repayments.

Net interest, finance and other costs consist of the following:

In November 2025, the Company renewed its normal course issuer bid in relation to its subordinate voting shares (“Fiscal 2026 NCIB”). The Company is authorized to make purchases under the Fiscal 2026 NCIB from November 10, 2025 to November 9, 2026, in accordance with the requirements of the Toronto Stock Exchange (the “TSX”). The Board of Directors of the Company has authorized the Company to repurchase up to 4,578,677 subordinate voting shares, representing approximately 10.0% of the Public Float (as defined in the rules of the TSX) for the subordinate voting shares as at October 27, 2025. Purchases will be made by means of open market transactions on both the TSX and the New York Stock Exchange (the “NYSE”), or alternative trading systems, if eligible, and will conform to their regulations. Under the Fiscal 2026 NCIB, the Company is allowed to repurchase daily, through the facilities of the TSX, a maximum of 58,127 subordinate voting shares, representing 25% of the average daily trading volume, as calculated per the TSX rules for the six-month period starting on May 1, 2025 and ending on October 31, 2025.

In connection with the Fiscal 2026 NCIB, the Company also entered an automatic share purchase plan (the “ASPP”) under which a designated broker may purchase subordinate voting shares under the Fiscal 2026 NCIB during the regularly scheduled quarterly trading blackout

periods of the Company. The repurchases made under the ASPP will be made in accordance with certain purchasing parameters and will continue until the earlier of the date in which the Company has purchased the maximum value of subordinate voting shares pursuant to the Fiscal 2026 NCIB or upon the date of expiry of the Fiscal 2026 NCIB.

The Company has issued stock options to purchase subordinate voting shares under its incentive plans, prior to the public share offering on March 21, 2017, the Legacy Plan, and subsequently, the Omnibus Plan. All options are issued at an exercise price that is not less than market value at the time of grant and expire ten years after the grant date.

Stock option transactions are as follows:

The Company has granted shares as part of the Restricted Share Unit ("RSU") program under the Omnibus Plan to employees of the Company. The RSUs are treated as equity instruments for accounting purposes. We expect that vested RSUs will be paid at settlement through the issuance of one subordinate voting share per RSU. The RSUs vest over a period of three years, a third on each anniversary of the date of grant.

RSU transactions are as follows:

The Company has granted shares as part of the Performance Share Unit (“PSU”) program under the Omnibus Plan. A PSU represents the right to receive a subordinate voting share settled by the issuance of shares at the vesting date. PSUs vest on the third anniversary of the award date and are earned only if certain performance targets are achieved. Shares issued per PSU at the vesting date can decrease or increase if minimum or maximum performance targets are achieved ranging from 0% to 200% of the PSU award granted. If performance targets are achieved, the Company expects that those vested PSUs will be paid at settlement through the issuance of one subordinate voting share per PSU. PSUs are treated as equity instruments for accounting purposes.

PSU transactions are as follows:

As at December 28, 2025, subordinate voting shares, to a maximum of 2,185,176 shares, have been reserved for issuance under equity incentive plans to select employees of the Company, with vesting contingent upon meeting the service, performance goals and other conditions of the Omnibus Plan.

Accounting for share-based awards

For the third and three quarters ended December 28, 2025, the Company recorded $4.9m and $14.1m, respectively, as compensation expense for the vesting of stock options, RSUs and PSUs (third and three quarters ended December 29, 2024 - $3.6m and $9.8m, respectively). Share-based compensation expense is included in SG&A expenses.

The assumptions used to measure the fair value of options granted under the Black-Scholes option pricing model at the grant date were as follows:

RSU and PSU fair values are determined based on the market value of the subordinate voting shares at the time of grant. As at December 28, 2025, the weighted average fair value of RSUs was $17.02 (December 29, 2024 - $18.38). As at December 28, 2025, the weighted average fair value of PSUs was $16.82 (December 29, 2024 - $18.85).

The joint venture between the Company and Sazaby League ("Japan Joint Venture"), has lease liabilities due to the non-controlling shareholder, Sazaby League, for leased premises. Lease liabilities were $1.0m as at December 28, 2025 (December 29, 2024 - $1.5m, March 30, 2025 - $1.4m). During the third and three quarters ended December 28, 2025, the Company incurred principal and interest on lease liabilities, royalty fees, and other operating costs to Sazaby League totalling $0.9m and $3.2m, respectively (third and three quarters ended December 29, 2024 - $0.8m and $2.6m, respectively). Balances owing to Sazaby League as at December 28, 2025 were $0.4m (December 29, 2024 - $0.3m, March 30, 2025 - $0.4m).

In connection with the Paola Confectii business combination that occurred on November 1, 2023, subject to the controlling shareholders of Paola Confectii SRL ("PCML Vendors") remaining employees through November 1, 2025, an additional consideration was payable to the PCML Vendors if certain performance conditions were met based on financial results (“Earn-Out”). During the third and three quarters ended December 28, 2025, the Company recognized $3.3m and $15.2m, respectively, of remuneration costs (third and three quarters ended December 29, 2024 - $1.2m and $2.7m, respectively) related to the Earn-Out in SG&A in the interim statements of income (loss). As at December 29, 2024, these costs were included in other long term liabilities in the interim statement of financial position, and were fully paid as at December 28, 2025.

A lease liability due to one of the PCML Vendors for leased premises was $1.1m as at December 28, 2025 (December 29, 2024 - $1.2m, March 30, 2025 - $1.2m). During the third and three quarters ended December 28, 2025, the Company paid principal and interest on the lease liability, to one of the PCML Vendors totalling less than $0.1m and $0.1m, respectively (third and three quarters ended December 29, 2024 - less than $0.1m and $0.1m, respectively). No amounts were owing to one of the PCML Vendors as at December 28, 2025, December 29, 2024, and March 30, 2025.

The following table presents the fair values and fair value hierarchy of the Company’s financial instruments and excludes financial instruments carried at amortized cost that are short-term in nature:

In connection with the Japan Joint Venture, for the third and three quarters ended December 28, 2025, the Company recorded a decrease of JPY18.5m ($0.2m, excluding translation losses of $0.1m) and a decrease of JPY105.0m ($1.1m, excluding translation losses of $0.1m) on the remeasurement of the contingent consideration, respectively. The Company recorded an increase of JPY344.9m ($0.4m, excluding translation losses of $2.6m) and an increase of JPY660.4m ($2.4m, excluding translation losses of $3.6m) on the remeasurement of the put option liability during the third and three quarters ended December 28, 2025, respectively. The change in fair value of the contingent consideration and the put option liability was driven by progression through the 10-year term.

For the third and three quarters ended December 29, 2024, the Company recorded a decrease of JPY141.2m ($1.5m, excluding translation losses of $0.2m) and a decrease of JPY1,514.0m ($13.4m, excluding translation losses of $0.3m) on the remeasurement of the contingent consideration, respectively. The Company recorded an increase of JPY71.3m ($0.6m, excluding translation losses of $1.3m) and an increase of JPY185.6m ($2.3m, excluding translation gains of $0.7m) on the remeasurement of the put option liability during the third and three quarters ended December 29, 2024, respectively.

The Company’s primary risk management objective is to protect the Company’s assets and cash flow, in order to increase the Company’s enterprise value.

The Company is exposed to capital management risk, liquidity risk, credit risk, market risk, foreign exchange risk, and interest rate risk. The Company’s senior management and Board of Directors oversee the management of these risks. The Board of Directors reviews and agrees upon policies for managing each of these risks which are summarized below.

The Company manages its capital and capital structure with the objectives of safeguarding sufficient working capital over the annual operating cycle and providing sufficient financial resources to grow operations to meet long-term consumer demand. The Board of Directors of

the Company monitors the Company’s capital management on a regular basis. The Company will continually assess the adequacy of the Company’s capital structure and capacity and make adjustments within the context of the Company’s strategy, economic conditions, and risk characteristics of the business.

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to satisfy the requirements for business operations, capital expenditures, debt service and general corporate purposes, under normal and stressed conditions. The primary source of liquidity is funds generated by operating activities; the Company also relies on the Mainland China Facilities, the Japan Facility, and the Revolving Facility as sources of funds for short-term working capital needs. The Company continuously reviews both actual and forecasted cash flows to ensure that the Company has appropriate capital capacity.

The following table summarizes the amount of contractual undiscounted future cash flow requirements by fiscal year as at December 28, 2025:

1Interest commitments are calculated based on the outstanding loan balance and the interest rate payable on the Japan Facility and the Term Loan of 1.20% and 7.37% respectively, as at December 28, 2025.

As at December 28, 2025, we had additional liabilities which included provisions for warranty, sales returns, asset retirement obligations, deferred income tax liabilities, the put option liability and the contingent consideration on the Japan Joint Venture. These liabilities have not been included in the table above as the timing and amount of future payments are uncertain.

On April 14, 2020, Canada Goose Inc. entered into a letter of guarantee facility in the amount of $10.0m. Within the facility, letters of guarantee are available for terms of up to 12 months from the date of issuance and will be charged a fee equal to 1.0% per annum calculated against the face amount and over the term of the guarantee. Amounts issued on the facility will be used to finance working capital requirements through letters of guarantee, standby letters of credit, performance bonds, counter guarantees, counter standby letters of credit, or similar credits. The Company immediately reimburses the issuing bank for amounts drawn on issued letters of guarantees. As at December 28, 2025, the Company had $9.7m outstanding.

In addition, a subsidiary of the Company in Mainland China entered into letters of guarantee and as at December 28, 2025 the amount outstanding was $15.3m. Amounts will be used to support

retail operations of such subsidiaries through letters of guarantee, standby letters of credit, performance bonds, counter guarantees, counter standby letters of credit, or similar credits.

A subsidiary of the Company in Europe has also entered into a letter of guarantee facility during the quarter. The facility will be used to support retail operations of such subsidiaries through letters of guarantee, standby letters of credit, performance bonds, counter guarantees, counter standby letters of credit, or similar credits. As at December 28, 2025, the Company had no letters of guarantee outstanding.

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

Credit risk arises from the possibility that certain parties will be unable to discharge their obligations. The Company manages its risk through a combination of third-party credit insurance and internal house risk processes. A third-party insurer provides coverage on customers’ trade accounts receivable balances, with ongoing monitoring of customer creditworthiness. This insurance covers a specified portion of revenue, which may be less than the Company's total revenue with a given customer. Under the Company’s agreement with the insurer, approved credit limits are established for certain designated customers and up to 90% of their trade accounts receivable balances are insured. The policy includes a deductible of $0.1m and an annual coverage limit of $30.0m. As at December 28, 2025, approximately $27.4m of trade accounts receivable (December 29, 2024 - $31.6m, March 30, 2025 - $10.7m) were insured subject to the policy cap and customer credit limits. In addition to insurance, the Company mitigates credit risk by establishing payment terms with customers and closely monitoring its accounts receivable exposure. As at December 28, 2025, expected credit losses and sales allowances totalled $16.5m (December 29, 2024 - $2.5m, March 30, 2025 - $2.5m).

Within Japan, the Company has an agreement with a third-party who has insured the risk of trade accounts receivable for certain designated customers for a maximum of JPY540.0m per annum subject to a deductible of 10% and applicable only to accounts with receivables over JPY0.1m. As at December 28, 2025, trade accounts receivable totalling $2.9m (JPY337.2m) were insured subject to the policy cap (December 29, 2024 - $4.1m (JPY444.3m), March 30, 2025 - $0.9m (JPY90.7m)).

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise foreign exchange risk and interest rate risk.

The Company’s Interim Financial Statements are expressed in Canadian dollars, but a substantial portion of the Company’s revenues, purchases, and expenses are denominated in other currencies, principally U.S. dollars, euros, British pounds sterling, Swiss francs, Chinese yuan, Hong Kong dollars, Japanese yen, Taiwanese dollars, and Australian dollars. The Company has entered into forward foreign exchange contracts to reduce the foreign exchange risk associated with revenues, purchases, and expenses denominated in these currencies. Certain forward foreign exchange contracts were designated at inception and accounted for as cash flow hedges.

Revenues and expenses of all foreign operations are translated into Canadian dollars at the foreign currency exchange rates that approximate the rates in effect at the dates when such items are recognized. As a result, we are exposed to foreign currency translation gains and losses. Appreciating foreign currencies relative to the Canadian dollar, to the extent they are not hedged, will positively impact operating income and net income by increasing our revenue, while depreciating foreign currencies relative to the Canadian dollar will have the opposite impact.

The Company recognized the following unrealized gains and losses in the fair value of derivatives designated as cash flow hedges in other comprehensive income:

The Company reclassified the following gains from other comprehensive income on derivatives designated as cash flow hedges to locations in the Interim Financial Statements described below:

For the third and three quarters ended December 28, 2025, unrealized losses of $1.7m and $1.9m, respectively, (third and three quarters ended December 29, 2024 - unrealized losses of $1.1m and $1.7m, respectively) on forward exchange contracts that were not treated as hedges were recognized in SG&A expenses in the interim statements of income (loss).

Foreign currency forward exchange contracts outstanding as at December 28, 2025 related to operating cash flows were:

The Company enters into derivative transactions to hedge a portion of its exposure to interest rate risk and foreign currency exchange risk related to principal and interest payments on the Term Loan denominated in U.S. dollars.

Refer to "Note 10. Borrowings" for more details on the Amendment to Term Loan.

The Company recognized the following unrealized gains and losses in the fair value of derivatives designated as hedging instruments in other comprehensive income:

The Company reclassified the following losses and gains from other comprehensive income on derivatives designated as hedging instruments to net interest, finance and other costs:

For the third and three quarters ended December 28, 2025, unrealized losses of $nil and $10.2m, respectively, (third and three quarters ended December 29, 2024 - unrealized gains of $21.1m and $19.5m, respectively) in the fair value of the long-dated forward exchange contract related to a portion of the Term Loan balance were recognized in net interest, finance and other costs in the interim statements of income (loss).

The Company is exposed to interest rate risk related to the effect of interest rate changes on the borrowings outstanding under the Mainland China Facilities, Japan Facility, Revolving Facility, and the Term Loan, which currently bear interest rates at 2.94%, 1.20%, 3.81% and 7.37%, respectively.

Interest rate risk on the Term Loan is partially mitigated by cross currency swap hedges. Refer to "Foreign exchange risk on borrowings" above for more details.

Based on the closing balance of outstanding borrowings, a 1.00% increase in the closing interest rate during the three quarters ended December 28, 2025 would have increased interest expense on the Japan Facility and the Term Loan before hedging by $0.1m and $3.1m, respectively (three quarters ended December 29, 2024 - $0.3m and $3.1m, respectively). In the comparative period, as at the three quarters ended December 29, 2024, along with the Japan Facility and the Term Loan, the Company also had outstanding borrowings on the Mainland China Facilities, for which a 1.00% increase in the closing interest rate would have increased interest expense by $0.2m.

For the third and three quarters ended December 28, 2025

This MD&A contains forward-looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Forward-looking statements can be identified by words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “predict,” “project,” “potential,” “should,” “will,” “would,” and other similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. They appear in many places throughout this MD&A and include statements regarding our intentions, beliefs, or current expectations concerning, among other things, our results of operations, financial condition, liquidity, business prospects, growth, strategies, expectations regarding industry trends and the size and growth rates of addressable markets, our business plan, and our growth strategies, including plans for expansion to new markets and new products, expectations for seasonal trends, and the industry in which we operate.

Certain assumptions made in preparing the forward-looking statements contained in this MD&A include:

•our ability to implement our growth strategies;

•our ability to maintain strong business relationships with our customers, suppliers, wholesalers, and distributors;

•our ability to keep pace with changing consumer preferences;

•our ability to protect our intellectual property;

•our ability to adapt to changes to our business as a whole due to environmental, social and governance (“ESG”) considerations;

•the continued absence of material global supply chain disruptions to our business, and our ability to fulfill demand and maintain sufficient inventory levels, which we continue to monitor;

•our ability to adapt to changing macroeconomic and international trade conditions, including interest rates, currency exchange rates, or enacted tariffs (and retaliatory measures), possible changes therefrom and other trade restrictions; and

•the absence of material adverse changes in our industry or the global economy.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We believe that these risks and uncertainties include, but are not limited to, those described in the “Risk Factors” section of our Annual Report and other risk factors described herein, which include, but are not limited to, the following risks:

•we may not open retail stores or expand e-Commerce access on our planned timelines;

•we may be adversely impacted by trade barriers, including enacted and prospective additional tariffs and regulations in the United States, China and the European Union, which could increase the prices of the raw materials for our products, and export requirements, tariffs, taxes and other restrictions and expenses, which could increase the prices of our products and make us less competitive in some countries;

•we may be unable to maintain the strength of our brand or to expand our brand to new products and geographies;

•unanticipated changes in the effective tax rate or adverse outcomes from audit examinations of corporate income or other tax returns;

•our indebtedness may adversely affect our financial condition, and we may not be able to refinance or renegotiate such indebtedness on favourable or satisfactory terms;