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UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of November, 2020

Commission File Number: 001-38027

CANADA GOOSE HOLDINGS INC.(Translation of registrant’s name into English)

250 Bowie Ave

Toronto, Ontario, Canada(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.Form 20-F Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

EXHIBIT INDEX

Exhibits 99.1 and 99.2 to this report of a Foreign Private Issuer on Form 6-K are deemed filed for all purposes under the SecuritiesAct of 1933, as amended, and the Securities Exchange Act of 1934, as amended.

ExhibitNo. Description

99.1 Consolidated Interim Financial Statements as at and for the Second and Two Quarters Ended September 27, 202099.2 Management’s Discussion and Analysis of Financial Condition and Results of Operation for the Second and Two

Quarters Ended September 27, 202099.3 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer99.4 Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer99.5 Press release of Canada Goose Holdings Inc., dated November 5, 2020

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signedon its behalf by the undersigned, thereunto duly authorized.

Canada Goose Holdings Inc.

By: /s/ Jonathan Sinclair Name: Jonathan Sinclair Title: Executive Vice President and Chief Financial

OfficerDate: November 5, 2020

Canada Goose Holdings Inc.

Condensed Consolidated Interim Financial StatementsAs at and for the second and two quarters ended

September 27, 2020 and September 29, 2019(Unaudited)

Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)(unaudited)(in millions of Canadian dollars, except per share amounts)

Second quarter ended Two quarters ended

NotesSeptember 27,

2020September 29,

2019September 27,

2020September 29,

2019$ $ $ $

Revenue 3 194.8 294.0 220.9 365.1 Cost of sales 6 100.6 133.6 121.9 163.8 Gross profit 94.2 160.4 99.0 201.3 Selling, general and administrative expenses 62.4 73.5 111.0 131.0 Depreciation and amortization 7, 8, 9 16.7 11.5 32.2 22.4 Operating income (loss) 15.1 75.4 (44.2) 47.9 Net interest, finance and other costs 12 6.0 5.9 12.7 18.1 Income (loss) before income taxes 9.1 69.5 (56.9) 29.8 Income tax (recovery) expense (1.3) 8.9 (17.2) (1.4)Net income (loss) 10.4 60.6 (39.7) 31.2

Other comprehensive income (loss)Items that will not be reclassified to earnings, net of tax:

Actuarial income (loss) on post-employment obligation 0.2 (1.1) 0.2 (1.1)Items that may be reclassified to earnings, net of tax:

Cumulative translation adjustment 1.8 (3.2) 0.2 (4.0)Net (loss) gain on derivatives designated as cash flowhedges 17 (1.0) 1.7 (0.9) 5.5 Reclassification of net loss (gain) on cash flow hedgesto income 17 1.9 (1.5) 3.8 (0.5)Net (loss) gain on derivatives designated as a netinvestment hedge 17 (0.8) 1.5 0.8 1.4

Other comprehensive income (loss) 2.1 (2.6) 4.1 1.3 Comprehensive income (loss) 12.5 58.0 (35.6) 32.5

Earnings (loss) per share 4Basic $ 0.09 $ 0.55 $ (0.36) $ 0.29 Diluted $ 0.09 $ 0.55 $ (0.36) $ 0.28

The accompanying notes to the condensed consolidated interim financial statements are an integral part of these financialstatements.

Canada Goose Holdings Inc. Page 1 of 35

Condensed Consolidated Interim Statements of Financial Position(unaudited)(in millions of Canadian dollars)

NotesSeptember 27,

2020September 29,

2019March 29,

2020Assets $ $ $Current assetsCash 156.3 34.2 31.7 Trade receivables 5 114.9 148.3 32.3 Inventories 6 417.2 365.2 412.3 Income taxes receivable 10.8 5.5 12.0 Other current assets 16 36.9 45.3 43.5 Total current assets 736.1 598.5 531.8 Deferred income taxes 62.1 38.9 40.8 Property, plant and equipment 7 120.1 102.7 115.1 Intangible assets 8 157.4 157.6 161.7 Right-of-use assets 9 247.7 210.5 211.8 Goodwill 53.1 53.1 53.1 Other long-term assets 16 1.1 4.6 6.0 Total assets 1,377.6 1,165.9 1,120.3

LiabilitiesCurrent liabilitiesAccounts payable and accrued liabilities 10, 16 163.6 144.9 144.4 Provisions 11 17.9 9.3 15.6 Income taxes payable 13.1 9.3 13.0 Short-term borrowings 12 11.0 17.8 — Lease liabilities 9 43.5 32.6 35.9 Total current liabilities 249.1 213.9 208.9 Provisions 11 19.6 16.3 21.4 Deferred income taxes 15.9 17.8 15.1 Revolving facility 12 222.5 177.7 — Term loan 12 151.2 149.3 158.1 Lease liabilities 9 223.2 191.6 192.0 Other long-term liabilities 16 6.4 6.5 4.6 Total liabilities 887.9 773.1 600.1 Shareholders' equity 13 489.7 392.8 520.2 Total liabilities and shareholders' equity 1,377.6 1,165.9 1,120.3



Condensed Consolidated Interim Statements of Changes in Shareholders' Equity(unaudited) (in millions of Canadian dollars)

Share capital Contributed surplusRetainedearnings

Accumulated othercomprehensive income

(loss) Total

NotesMultiple voting

sharesSubordinate voting

shares Total $ $ $ $ $ $ $

Balance at March 29, 2020 1.4 113.3 114.7 15.7 389.4 0.4 520.2 Exercise of stock options 13 — 1.0 1.0 (0.6) — — 0.4 Net loss — — — — (39.7) — (39.7)Other comprehensive income — — — — — 4.1 4.1 Share-based payment 14 — — — 4.7 — — 4.7 Balance at September 27,2020 1.4 114.3 115.7 19.8 349.7 4.5 489.7

Balance at March 31, 2019 1.4 111.2 112.6 9.2 279.7 (2.4) 399.1 IFRS 16 initial application 9 — — — — (4.9) — (4.9)Normal course issuer bidpurchase of subordinate votingshares 13 — (1.6) (1.6) — (37.1) — (38.7)Exercise of stock options 13 — 1.4 1.4 (0.6) — — 0.8 Net income — — — — 31.2 — 31.2 Other comprehensive income — — — — — 1.3 1.3 Share-based payment 14 — — — 4.0 — — 4.0 Balance at September 29,2019 1.4 111.0 112.4 12.6 268.9 (1.1) 392.8



Condensed Consolidated Interim Statements of Cash Flows(unaudited)(in millions of Canadian dollars)


NotesSeptember 27,

2020September 29,

2019September 27,

2020September 29,

2019 $ $ $ $

Operating activitiesNet income (loss) 10.4 60.6 (39.7) 31.2 Items not affecting cash:

Depreciation and amortization 7, 8, 9 18.5 14.1 37.3 27.4 Income tax (recovery) expense (1.3) 8.9 (17.2) (1.4)Interest expense 5.6 6.0 10.4 11.0 Foreign exchange gain (1.5) (0.2) (0.6) (4.6)Acceleration of unamortized costs on debtextinguishment

12— — — 7.0

Loss on disposal of assets — — 0.1 0.2 Share-based payment 14 2.9 2.1 4.7 4.0

34.6 91.5 (5.0) 74.8 Changes in non-cash operating items 18 (40.3) (77.1) (64.7) (211.7)Income taxes paid (2.4) (9.8) (3.8) (34.4)Interest paid (5.4) (5.3) (9.8) (9.7)Net cash used in operating activities (13.5) (0.7) (83.3) (181.0)Investing activitiesPurchase of property, plant and equipment 7 (3.0) (16.4) (7.0) (17.7)Investment in intangible assets 8 (1.0) (4.2) (1.8) (8.1)Net cash used in investing activities (4.0) (20.6) (8.8) (25.8)Financing activitiesNet borrowings on debt facilities 12 22.9 34.5 235.0 196.8 Transaction costs on financing activities 12 (0.1) — (0.4) (2.0)Subordinate voting shares purchased for cancellation 13 — — — (38.7)Principal paid on lease liabilities 9 (8.8) (4.6) (17.4) (9.6)Settlement of term loan derivative contracts 16 — — — 4.6 Exercise of stock options 14 0.1 0.5 0.4 0.8 Net cash from financing activities 14.1 30.4 217.6 151.9 Effects of foreign currency exchange rate changes oncash (0.4) 0.1 (0.9) 0.5 (Decrease) increase in cash (3.8) 9.2 124.6 (54.4)Cash, beginning of period 160.1 25.0 31.7 88.6 Cash, end of period 156.3 34.2 156.3 34.2



Notes to the Condensed Consolidated Interim Financial Statements(unaudited)

Note 1. The CompanyOrganization

Canada Goose Holdings Inc. and its subsidiaries (the “Company”) design, manufacture, and sell performance luxury apparel formen, women, youth, children, and babies. The Company’s apparel collections include various styles of parkas, lightweight downjackets, rainwear, windwear, knitwear, footwear, and accessories for the fall, winter, and spring seasons. The Company’s headoffice is located at 250 Bowie Avenue, Toronto, Canada M6E 4Y2. The use of the terms “Canada Goose”, “we”, “us”, and “our”throughout these notes to the condensed consolidated interim financial statements ("Interim Financial Statements") refer to theCompany.

Canada Goose is a public company listed on the Toronto Stock Exchange and the New York Stock Exchange under the tradingsymbol “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 President and Chief Executive Officer of theCompany. The principal shareholders hold multiple voting shares representing 46.3% of the total shares outstanding as atSeptember 27, 2020, or 89.6% of the combined voting power of the total voting shares outstanding. Subordinate voting sharesthat trade on public markets represent 53.7% of the total shares outstanding as at September 27, 2020, or 10.4% of thecombined voting power of the total voting shares outstanding.

Statement of compliance

The Interim Financial Statements are prepared in accordance with International Accounting Standard (“IAS”) 34, InterimFinancial Reporting, as issued by the International Accounting Standards Board (“IASB”). These Interim Financial Statements donot include all of the information required for annual financial statements. Certain information, which is considered material to theunderstanding of the Interim Financial Statements and is normally included in the annual financial statements prepared inaccordance with International Financial Reporting Standards ("IFRS") as issued by the IASB, is provided in these notes. TheseInterim Financial Statements have been prepared using the accounting policies described in note 2 to the Company's March 29,2020 annual consolidated financial statements, which should be read in conjunction with these Interim Financial Statements.

The Interim Financial Statements were authorized for issuance in accordance with a resolution of the Company’s Board ofDirectors on November 4, 2020.

Seasonality

Our business is seasonal, and we have historically realized a significant portion of our Wholesale revenue and operating incomein the second and third quarters of the fiscal year and Direct-to-Consumer ("DTC") revenue and operating income in the thirdand fourth quarters of the fiscal year. Thus, lower-than-expected revenue in these periods could have an adverse impact on ourannual operating results.

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



Note 2. Significant accounting policies and critical accounting estimates and judgmentsBasis of presentation

The significant accounting policies and critical accounting estimates and judgments as disclosed in the Company’s March 29,2020 annual consolidated financial statements have been applied consistently in the preparation of these Interim FinancialStatements except as noted below. The Interim Financial Statements are presented in Canadian dollars, the Company’sfunctional and presentation currency.

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. Fiscal 2021 will end on March 28, 2021 and will be a 52-week fiscal year. Fiscal 2021 comprisesfour fiscal quarters ending on June 28, 2020, September 27, 2020, December 27, 2020 and March 28, 2021. In the InterimFinancial Statements, the term "second quarter ended September 27, 2020" refers to the 13 week period ended September 27,2020 and the term "second quarter ended September 29, 2019" refers to the 13 week period ended September 29, 2019. Fiscal2020 was a 52-week fiscal year.

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

Product development costs, primarily employee salaries and benefits, were previously included in inventories and intangibleassets, with subsequent recognition in cost of sales accordingly. As we continue to emphasize our DTC expansion, we havedetermined these activities in fiscal 2021 to now be more closely supportive of our current selling and marketing activities. As aresult, effective the first quarter of fiscal 2021, product development costs incurred in the current quarter were recognized inselling, general and administrative expenses in the statement of income (loss). Those product development costs included inexisting inventory and intangible assets will continue to be recognized within cost of sales.

COVID-19 pandemic

Globally, public health officials have imposed restrictions and recommended precautions to mitigate the spread of the ongoingoutbreak of the novel coronavirus ("COVID-19"), especially when congregating in heavily populated areas, such as shoppingmalls and lifestyle centres. As a result, our retail stores are operating with restrictive and precautionary measures in place suchas reduced operating hours, physical distancing, enhanced cleaning and sanitation, and limited occupancy levels. We have alsoexperienced a significant reduction to wholesale shipments due to COVID-19 disruptions to partner operations. During the fourthquarter of fiscal 2020, we temporarily reduced operating hours for our retail locations in Mainland China and closed our retaillocations in North America and Europe. We began a gradual reopening of these locations during the first quarter of fiscal 2021 inaccordance with guidance from local authorities, and all of our retail locations were operating as at September 27, 2020. Wealso temporarily closed our manufacturing facilities across Canada in March 2020, partially reopening them in April 2020 for theproduction of PPE. During the second quarter of fiscal 2021, we began a limited restart of the production of outerwear alongsidePPE at all of our facilities. All of our manufacturing facilities were operating as at September 27, 2020.

In response to COVID-19, various government programs have been announced to provide financial relief for affectedbusinesses. The most significant relief measure which the Company qualifies for is the Canada Emergency Wage Subsidy("CEWS") under the COVID-19 Economic Response Plan in Canada. For the second and two quarters ended September 27,2020, the



Company recognized payroll subsidies totaling $12.0m and $20.7m, respectively, under this wage subsidy program and similarplans in other jurisdictions. The Company recognizes government grants when there is reasonable assurance that it will complywith the conditions required to qualify for the grant, and that the grant will be received. These subsidies were recorded as areduction to the associated wage costs which the Company incurred during the second and two quarters ended September 27,2020, and were recognized in cost of sales ($7.8m and $9.1m respectively), selling, general and administrative expenses ($4.1mand $11.2m respectively), and other costs ($0.1m and $0.4m respectively). No such grants were applied for or received inrespect of the manufacture and sale of personal protective equipment ("PPE") as these were sold to health authorities at cost.

In May 2020, the IASB issued an amendment to IFRS 16, Leases exempting lessees from determining whether COVID-19related rent concessions are lease modifications. The amendment is effective for annual reporting periods beginning on or afterJune 1, 2020 and earlier application is permitted. In accordance with the guidance issued, the Company adopted theamendment effective March 30, 2020 and elected not to treat COVID-19 related rent concessions as lease modifications. Rentconcessions of $1.7m and $2.4m were recognized in the statement of income (loss) for the second and two quarters endedSeptember 27, 2020, respectively, and the Company will consider seeking further rent concessions as it continues to monitor theimpact of COVID-19.

During the second quarter of fiscal 2021, we began a limited restart of the production of outerwear alongside PPE, at all of ourfacilities, while ensuring compliance with COVID-19 safety protocols. In the first quarter of fiscal 2021, our manufacturingfacilities were temporarily closed and net overhead costs of $4.3m were recognized in cost of sales. Inventories are valued atthe lower of cost and net realizable value. The Company periodically reviews the value of inventories and makes provisions asnecessary to estimate the amounts expected to be unrecoverable due to obsolescence, damage, or declining selling prices. Forthe two quarters ended September 27, 2020, the Company did not recognize any significant additional write-offs of inventories(note 6).

As a result of the temporary store closures, net costs of $0.4m and $7.1m were recognized in selling, general and administrativeexpenses, depreciation and amortization, and interest during the second and two quarters ended September 27, 2020,respectively.

In the first quarter of fiscal 2021, COVID-19 resulted in the temporary closure of the Company's retail locations andmanufacturing facilities as well as significantly reduced shipments to wholesale partners, resulting in an indicator of impairment.During the second quarter of fiscal 2021 the Company reopened all retail locations globally, resumed a limited production ofouterwear at all manufacturing facilities, and continued shipments to wholesale partners. Based on these factors, managementassessed whether indicators of impairment existed as at September 27, 2020 in accordance with IAS 36, Impairment of Assets,and no indicators were identified.

Principles of consolidation

The Interim Financial Statements include the accounts of the Company and its subsidiaries. All intercompany transactions andbalances have been eliminated.



Operating segments

The Company classifies its business in three operating and reportable segments: DTC, Wholesale, and Other. The DTCsegment comprises sales through country-specific e-commerce platforms and its Company-owned retail stores located in luxuryshopping locations.

The Wholesale segment comprises sales made to a mix of functional and fashionable retailers, including major luxurydepartment stores, outdoor specialty stores, and individual shops, and to international distributors, who are partners that haveexclusive rights to an entire market.

In the fourth quarter of fiscal 2020, the Company revised the previous Unallocated segment to the Other segment. The Othersegment comprises sales and costs not directly allocated to the DTC or Wholesale channels, such as sales to employees andsales of PPE in response to COVID-19, and selling, general and administrative expenses not directly allocated to the DTC orWholesale segments. The Other segment includes the cost of marketing expenditures and product development to build brandawareness across all segments, corporate costs in support of manufacturing operations, other corporate costs and foreignexchange gains and losses not specifically associated with DTC or Wholesale segment operations. It also includes costsincurred as a consequence of the COVID-19 pandemic including overhead costs resulting from the temporary closure of ourmanufacturing facilities. Comparative information has been restated to conform with the presentation adopted in the currentyear.

Standards issued and not yet adopted

Certain new standards, amendments, and interpretations to existing IFRS standards have been published but are not yeteffective and have not been adopted early by the Company. Management anticipates that pronouncements will be adopted inthe Company’s accounting policy for the first period beginning after the effective date of the pronouncement. Information on newstandards, amendments, and interpretations is provided below.

In January 2020, the IASB issued an amendment to IAS 1, Presentation of Financial Statements to clarify its requirements forthe presentation of liabilities in the statement of financial position. The limited scope amendment affected only the presentationof liabilities in the statement of financial position and not the amount or timing of its recognition. The amendment clarified that theclassification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period andspecified that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of aliability. It also introduced a definition of ‘settlement’ to make clear that settlement refers to the transfer to the counterparty ofcash, equity instruments, other assets or services. The amendment is effective for annual reporting periods beginning on or afterJanuary 1, 2023. Earlier application is permitted. The Company is assessing the potential impact of the amendment.



Note 3. Segment informationThe Company has three reportable operating segments: DTC, Wholesale, and Other. The Company measures each reportableoperating segment’s performance based on revenue and segment operating income, which is the profit metric utilized by theCompany's chief operating decision maker, the President and Chief Executive Officer, for assessing the performance ofoperating segments. Our DTC and Wholesale operating segments are not reliant on any single external customer.The Company does not report total assets or total liabilities based on its reportable operating segments.

Second quarter ended September 27, 2020(in millions of Canadian dollars) DTC Wholesale Other Total

$ $ $ $Revenue 46.2 118.5 30.1 194.8 Cost of sales 10.7 62.1 27.8 100.6 Gross profit 35.5 56.4 2.3 94.2 Selling, general and administrative expenses 15.8 10.6 36.0 62.4 Depreciation and amortization 12.6 0.9 3.2 16.7 Operating income (loss) 7.1 44.9 (36.9) 15.1 Net interest, finance and other costs 6.0 Income before income taxes 9.1

Second quarter ended September 29, 2019(in millions of Canadian dollars) DTC Wholesale Other Total




Two quarters ended September 27, 2020(in millions of Canadian dollars) DTC Wholesale Other Total

$ $ $ $Revenue 56.6 127.2 37.1 220.9 Cost of sales 12.5 69.3 40.1 121.9 Gross profit (loss) 44.1 57.9 (3.0) 99.0 Selling, general and administrative expenses 25.4 18.4 67.2 111.0 Depreciation and amortization 23.8 1.8 6.6 32.2 Operating (loss) income (5.1) 37.7 (76.8) (44.2)Net interest, finance and other costs 12.7 Loss before income taxes (56.9)

Two quarters ended September 29, 2019(in millions of Canadian dollars) DTC Wholesale Other Total


Geographic information

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

Second quarter ended Two quarters ended(in millions of Canadian dollars) September 27,

2020September 29,

2019September 27,

2020September 29,

2019$ $ $ $

Canada 66.3 91.2 77.9 120.4 United States 37.8 87.9 40.3 101.1 Asia 41.3 48.9 51.2 67.0 Europe and Rest of World 49.4 66.0 51.5 76.6 Revenue 194.8 294.0 220.9 365.1



Note 4. Earnings per shareBasic earnings per share is calculated by dividing net income attributable to ordinary equity holders by the weighted averagenumber of ordinary shares outstanding during the period.

Diluted earnings per share is calculated by dividing net income attributable to ordinary equity holders by the weighted averagenumber of ordinary shares outstanding during the period plus the weighted average number of ordinary shares, if any, that wouldbe issued on exercise of stock options and restricted share units ("RSU") (note 14).

Subordinate voting shares issuable on exercise of stock options are not treated as dilutive if including them would decrease theloss per share. Accordingly, 727,718 potentially dilutive shares have been excluded from the calculation of diluted loss per sharefor the two quarters ended September 27, 2020.

Second quarter ended Two quarters ended(in millions of Canadian dollars, except shareand per share amounts) September 27,

2020September 29,

2019September 27,

2020September 29,

2019

Net income (loss) $ 10.4 $ 60.6 $ (39.7) $ 31.2 Weighted average number of multiple andsubordinate voting shares outstanding 110,143,728 109,539,715 110,104,158 109,239,463 Weighted average number of shares on exerciseof stock options and RSUs 744,719 1,291,317 — 1,435,931 Diluted weighted average number of multipleand subordinate voting shares outstanding 110,888,447 110,831,032 110,104,158 110,675,394 Earnings (loss) per shareBasic $ 0.09 $ 0.55 $ (0.36) $ 0.29 Diluted $ 0.09 $ 0.55 $ (0.36) $ 0.28

Note 5. Trade receivables

(in millions of Canadian dollars)September 27,

2020September 29,

2019March 29,

2020 $ $ $

Trade accounts receivable 91.5 139.5 26.9 Credit card receivables 3.1 9.0 2.1 Government grant receivable 10.6 — — Other receivables 11.7 1.0 5.1

116.9 149.5 34.1 Less: expected credit loss and sales allowances (2.0) (1.2) (1.8)Trade receivables, net 114.9 148.3 32.3



Note 6. Inventories


2020September 29,

2019March 29,

2020 $ $ $

Raw materials 74.4 61.3 61.5 Work in progress 16.4 18.0 19.4 Finished goods 326.4 285.9 331.4 Total inventories at the lower of cost and netrealizable value 417.2 365.2 412.3

Inventories are carried at the lower of cost and net realizable value. In estimating net realizable value, the Company estimatesobsolescence and product loss incurred since the last inventory count (“shrinkage”), based on historical experience. Included ininventory as at September 27, 2020 are provisions for obsolescence and inventory shrinkage totaling $20.7m (September 29,2019 - $15.7m, March 29, 2020 - $17.1m).

Amounts charged to cost of sales comprise the following:

Second quarter ended Two quarters ended(in millions of Canadian dollars) September 27,

2020September 29,

2019September 27,

2020September 29,

2019 $ $ $ $

Cost of goods manufactured 98.8 131.0 116.8 158.8 Depreciation and amortization 1.8 2.6 5.1 5.0

100.6 133.6 121.9 163.8

Note 7. Property, plant and equipmentThe following table presents changes in the cost and accumulated depreciation of the Company’s property, plant and equipment:(in millions of Canadiandollars) Plant equipment

Computerequipment

Leaseholdimprovements

Showdisplays

Furniture andfixtures In progress Total

Cost $ $ $ $ $ $ $March 29, 2020 26.6 8.7 82.4 10.2 25.5 8.9 162.3 Additions 0.4 0.5 1.2 — 0.6 13.9 16.6 Disposals (0.2) (0.1) — — — — (0.3)Transfers 1.8 0.7 10.1 0.2 1.6 (14.4) — September 27, 2020 28.6 9.8 93.7 10.4 27.7 8.4 178.6

March 31, 2019 22.3 5.4 54.8 7.6 20.3 0.7 111.1 Additions 3.7 0.6 5.6 0.8 2.5 13.1 26.3 Disposals (0.2) — — — — — (0.2)Transfers 0.6 0.1 3.6 0.1 1.1 (5.5) — September 29, 2019 26.4 6.1 64.0 8.5 23.9 8.3 137.2



(in millions of Canadiandollars) Plant equipment

Computerequipment

Leaseholdimprovements

Showdisplays

Furniture andfixtures In progress Total

Accumulated depreciation $ $ $ $ $ $ $March 29, 2020 6.3 4.3 21.8 6.0 8.8 — 47.2 Depreciation 1.4 1.3 5.5 1.0 2.3 — 11.5 Disposals (0.1) (0.1) — — — — (0.2)September 27, 2020 7.6 5.5 27.3 7.0 11.1 — 58.5

March 31, 2019 4.1 3.0 11.3 4.0 4.4 — 26.8 Depreciation 1.1 0.5 3.5 0.8 1.8 — 7.7 September 29, 2019 5.2 3.5 14.8 4.8 6.2 — 34.5

Net book valueSeptember 27, 2020 21.0 4.3 66.4 3.4 16.6 8.4 120.1

September 29, 2019 21.2 2.6 49.2 3.7 17.7 8.3 102.7

March 29, 2020 20.3 4.4 60.6 4.2 16.7 8.9 115.1

Note 8. Intangible assetsIntangible assets comprise the following:


2020September 29,

2019March 29,

2020$ $ $

Intangible assets with finite lives 41.6 41.8 45.9 Intangible assets with indefinite lives:Brand names 115.5 115.5 115.5 Domain name 0.3 0.3 0.3

157.4 157.6 161.7



The following table presents the changes in cost and accumulated amortization of the Company’s intangible assets with finitelives:

Intangible assets with finite lives(in millions of Canadian dollars) ERP software Computer software Lease rights Intellectual property In progress TotalCost $ $ $ $ $ $March 29, 2020 24.4 21.4 — 14.1 12.6 72.5 Additions 0.1 1.0 — — 1.4 2.5 Transfers 1.3 4.3 — 2.5 (8.1) — September 27, 2020 25.8 26.7 — 16.6 5.9 75.0

March 31, 2019 12.8 13.9 6.7 9.0 15.2 57.6 Additions 0.1 0.6 — — 10.5 11.2 IFRS 16 initial direct costs (note 9) — — (6.7) — — (6.7)Transfers 11.3 — — — (11.3) — September 29, 2019 24.2 14.5 — 9.0 14.4 62.1

(in millions of Canadian dollars) ERP software Computer software Lease rights Intellectual property In progress TotalAccumulated amortization $ $ $ $ $ $March 29, 2020 9.1 10.5 — 7.0 — 26.6 Amortization 1.6 2.3 — 2.9 — 6.8 September 27, 2020 10.7 12.8 — 9.9 — 33.4

March 31, 2019 5.6 7.1 1.2 3.9 — 17.8 Amortization 1.6 1.3 — 0.8 — 3.7 IFRS 16 initial direct costs (note 9) — — (1.2) — — (1.2)September 29, 2019 7.2 8.4 — 4.7 — 20.3

Net book valueSeptember 27, 2020 15.1 13.9 — 6.7 5.9 41.6

September 29, 2019 17.0 6.1 — 4.3 14.4 41.8

March 29, 2020 15.3 10.9 — 7.1 12.6 45.9

Intellectual property consists of product development costs, acquired technology, and patents and trademarks.



Note 9. LeasesRight-of-use assets

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

(in millions of Canadian dollars) Retail stores Manufacturing facilities Other TotalCost $ $ $ $March 29, 2020 191.5 36.6 18.0 246.1 Additions 58.1 0.1 3.0 61.2 Lease modifications — — (1.5) (1.5)Impact of foreign currency translation (3.2) — (0.5) (3.7)September 27, 2020 246.4 36.7 19.0 302.1

March 31, 2019 — — — — Initial application of IFRS 16 97.0 27.2 12.4 136.6 Reclassification of initial direct costs 5.5 — — 5.5 Additions 71.6 3.6 2.9 78.1 Lease modifications 3.4 2.7 — 6.1 September 29, 2019 177.5 33.5 15.3 226.3

(in millions of Canadian dollars) Retail stores Manufacturing facilities Other TotalAccumulated depreciation $ $ $ $March 29, 2020 26.8 4.8 2.7 34.3 Depreciation 16.5 2.6 1.7 20.8 Impact of foreign currency translation (0.6) — (0.1) (0.7)September 27, 2020 42.7 7.4 4.3 54.4

March 31, 2019 — — — — Depreciation 12.3 2.2 1.3 15.8 September 29, 2019 12.3 2.2 1.3 15.8

Net book valueSeptember 27, 2020 203.7 29.3 14.7 247.7 September 29, 2019 165.2 31.3 14.0 210.5 March 29, 2020 164.7 31.8 15.3 211.8



Lease liabilities

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

(in millions of Canadian dollars) Retail stores Manufacturing facilities Other Total$ $ $ $

March 29, 2020 176.3 34.7 16.9 227.9 Additions 58.1 — 3.0 61.1 Lease modifications — — (1.3) (1.3)Principal payments (13.5) (2.4) (1.5) (17.4)Impact of foreign currency translation (2.9) — (0.7) (3.6)September 27, 2020 218.0 32.3 16.4 266.7

March 31, 2019 — — — — Initial application of IFRS 16 107.8 29.4 13.6 150.8 Additions 70.4 3.6 2.9 76.9 Lease modifications 3.4 2.7 — 6.1 Principal payments (6.8) (1.9) (0.9) (9.6)September 29, 2019 174.8 33.8 15.6 224.2

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

(in millions of Canadian dollars) Retail stores Manufacturing facilities Other Total$ $ $ $

Current lease liabilities 34.6 5.0 3.9 43.5 Non-current lease liabilities 183.4 27.3 12.5 223.2 September 27, 2020 218.0 32.3 16.4 266.7

Current lease liabilities 25.5 4.3 2.8 32.6 Non-current lease liabilities 149.3 29.5 12.8 191.6 September 29, 2019 174.8 33.8 15.6 224.2

Current lease liabilities 27.5 5.0 3.4 35.9 Non-current lease liabilities 148.8 29.7 13.5 192.0 March 29, 2020 176.3 34.7 16.9 227.9

Leases of low-value assets and short-term leases are not included in the calculation of lease liabilities. These lease expensesare recognized in cost of sales or selling, general and administrative expenses on a straight-line or other systematic basis.



Note 10. Accounts payable and accrued liabilitiesAccounts payable and accrued liabilities consist of the following:


2020September 29,

2019March 29,

2020 $ $ $

Trade payables 64.1 49.4 53.3 Accrued liabilities 57.3 57.5 53.8 Employee benefits 20.3 19.3 13.6 Derivative financial instruments 7.2 3.9 19.0 Other payables 14.7 14.8 4.7 Accounts payable and accrued liabilities 163.6 144.9 144.4

Note 11. ProvisionsProvisions consist primarily of amounts recorded with respect to customer warranty obligations, sales returns, asset retirementobligations, and termination of sales agents and distributors.

The provision for warranty claims represents the present value of management's best estimate of the future outflow of economicresources that will be required to meet the Company's obligations for warranties upon sale of goods, which may include repair orreplacement of previously sold products. The estimate has been made on the basis of historical warranty trends and may varyas a result of new materials, altered manufacturing processes, customer behaviour and expectations, or other events affectingproduct quality and production.

Sales returns relate primarily to goods sold through the Wholesale channel. Beginning in the fourth quarter of fiscal 2020, thereceipt of returned products was delayed in the Wholesale channel as a result of COVID-19. Goods sold through the DTCchannel have a limited right of return (typically 30 days), or exchange only, in certain jurisdictions.

Asset retirement obligations relate to legal obligations associated with the retirement of tangible long-lived assets, primarily forleasehold improvements that the Company is contractually obligated to remove at the end of the lease term. The Companyrecognizes the liability when such obligations are incurred. The fair value of the liability is estimated based on a number ofassumptions requiring management’s judgment, including closing costs and inflation rates, and is accreted to its projected futurevalue over time.



Provisions are classified as current and non-current liabilities based on management's expectations of the timing of settlement,as follows:

(in millions of Canadian dollars) Warranty Sales returnsAsset retirement

obligations Other Total$ $ $ $ $

Current provisions 4.1 13.6 — 0.2 17.9 Non-current provisions 14.8 — 4.8 — 19.6 September 27, 2020 18.9 13.6 4.8 0.2 37.5

Current provisions 1.5 7.8 — — 9.3 Non-current provisions 10.3 — 3.0 3.0 16.3 September 29, 2019 11.8 7.8 3.0 3.0 25.6

Current provisions 4.9 10.7 — — 15.6 Non-current provisions 14.5 — 3.9 3.0 21.4 March 29, 2020 19.4 10.7 3.9 3.0 37.0

For the two quarters ended September 27, 2020, the Company recognized a net restructuring cost of $1.7m, associated with theMay 20, 2020 reorganization to address the impact of COVID-19 pandemic. The provision primarily consists of employeeseverance costs which includes obligations related to ongoing payments and represents the best estimate of the amount that willultimately be paid out. This was recorded in net interest, finance and other costs in the statement of income (loss). AtSeptember 27, 2020, the balance was $0.2m.

Note 12. BorrowingsShort-term borrowings

On July 18, 2019, a subsidiary of the Company in Greater China entered into an uncommitted loan facility in the amount of RMB160.0m. The facility includes a non-financial bank guarantee facility in the amount of RMB 10.0m. The term of each draw on theloan is one, three or six months or such other period as agreed upon and shall not exceed twelve months (including anyextension or rollover). The interest rate is equal to 105% of the applicable People's Bank of China Benchmark Lending Rate andpayable at one, three or six months, depending on the term of each draw. The facility is guaranteed by the Company andproceeds drawn on the facility will be used to support working capital requirements. As at September 27, 2020, the Companyhad $11.0m owing on the facility (September 29, 2019 - $17.8m, March 29, 2020 - $nil).



Amendments to long-term debt agreements

On May 26, 2020, the Company entered into a further amendment to the revolving facility to increase its ability to borrow againstthe borrowing base by up to $50.0m. The amended revolving facility consists of the existing revolving facility with a reducedcommitment in the amount of $417.5m with a seasonal increase of up to $467.5m during the peak season (June 1 - November30), and a first-in, last-out (“FILO”) revolving facility in the amount of $50.0m. Borrowings under the existing revolving facilitywere transferred to the FILO revolving facility on the transaction date and future amounts are drawn in priority on the FILOrevolving facility. Amounts drawn on the FILO revolving facility are subject to an interest rate charge that is 2.00% higher thanthe existing revolving facility. The FILO revolving facility matures on May 25, 2021 and upon maturity, the credit commitments onthe existing revolving facility will be restored, resulting in no net change in aggregate commitments under the revolving facility.Transaction costs are amortized over the term of the facility.

Revolving facility

The Company has an agreement with a syndicate of lenders for a senior secured asset-based credit facility consisting of (i) arevolving credit facility in the amount of $417.5m, with an increase in commitments to $467.5m during the peak season (June 1 -November 30) (February 24, 2020 to May 25, 2020 - $467.5m with an increase to $517.5m during the peak season, May 10,2019 to February 23, 2020 - $300.0m, with an increase to $350.0m during the peak season), and (ii) a FILO revolving facility inthe amount of $50.0m. Amounts owing can be drawn in Canadian dollars, U.S. dollars, euros, British pounds sterling or othercurrencies. The revolving facility matures on June 3, 2024 and the FILO revolving facility matures on May 25, 2021. Amountsowing under the revolving facility may be borrowed, repaid and re-borrowed for general corporate purposes.

The revolving facility has multiple interest rate charge options that are based on the Canadian prime rate, Banker's Acceptancerate, the lenders' Alternate Base Rate, European Base Rate, LIBOR rate, or EURIBOR rate plus an applicable margin, withinterest payable quarterly or at the end of the then current interest period (whichever is earlier). The Company has pledgedsubstantially all of its assets as collateral for the revolving facility. The revolving facility contains financial and non-financialcovenants which could impact the Company’s ability to draw funds. As at and during the two quarters ended September 27,2020, the Company was in compliance with all covenants.

The amount outstanding with respect to the revolving facility is summarized as follows:


2020September 29,

2019March 29,

2020$ $ $

Revolving facility 224.9 179.4 — Unamortized portion of deferred transaction costs (2.4) (1.7) —

222.5 177.7 —

As at March 29, 2020, the Company had repaid all amounts owing on the revolving facility and related deferred financingcharges in the amounts of $1.7m were included in other long-term liabilities.



The revolving credit commitment also includes a letter of credit commitment in the amount of $25.0m, with a $5.0m sub-commitment for letters of credit issued in a currency other than Canadian dollars, U.S. dollars, euros or British pounds sterling,and a swingline commitment for $25.0m. As at September 27, 2020, the Company had letters of credit outstanding under therevolving facility of $5.7m (September 29, 2019 - $6.1m, March 29, 2020 - $5.7m). The Company has unused borrowingcapacity available under the revolving facility of $101.8m as at September 27, 2020 (September 29, 2019 - $164.5m, March 29,2020 - $226.6m).

Term loan

The Company has a senior secured loan agreement with a syndicate of lenders that is secured on a split collateral basisalongside the revolving facility, with an aggregate principal amount owing of US$113.8m. The term loan bears interest at a rateof LIBOR plus an applicable margin of 3.50%, payable monthly in arrears. The term loan matures on December 2, 2024.Amounts owing under the term loan may be repaid at any time without premium or penalty, but once repaid may not bereborrowed. The Company has pledged substantially all of its assets as collateral for the term loan. The term loan containsfinancial and non-financial covenants which could impact the Company’s ability to draw funds. As at and during the two quartersended September 27, 2020, the Company was in compliance with all covenants.

As the term loan is denominated in U.S. dollars, the Company remeasures the outstanding balance plus accrued interest at eachbalance sheet date.

The amount outstanding with respect to the term loan is as follows:


2020September 29,

2019March 29,

2020$ $ $

Term loan 152.3 150.7 159.3 Unamortized portion of deferred transaction costs (1.1) (1.4) (1.2)

151.2 149.3 158.1

Hedging transactions on term loan

The Company entered into derivative transactions to hedge a portion of its exposure to foreign currency exchange risk andinterest rate risk related to the term loan denominated in U.S. dollars. The designated hedge transactions remained effectiveafter the amendment to the term loan agreement in the first quarter of fiscal 2020. Nevertheless, on June 12, 2019, theCompany terminated its existing derivative contracts and entered into new derivative transactions to better align with theamended interest rate and term to maturity of the term loan.

The Company entered into a cross-currency swap by selling US$70.0m, floating rate debt bearing interest at LIBOR plus 3.50%as measured on the trade date, and receiving $93.0m fixed rate debt bearing interest at a rate of 5.02%. This cross-currencyswap has been designated at inception and is accounted for as a cash flow hedge, and to the extent that the hedge is effective,unrealized gains and losses are included in other comprehensive income until reclassified to the statement of income (loss) asthe hedged interest payments and principal repayments (or periodic remeasurements) impact net income.

Concurrently, the Company entered into a second cross-currency swap by selling the $93.0m fixed rate debt bearing interest ata rate of 5.02% and receiving €61.8m fixed rate debt bearing interest at a rate of 3.19%. This cross-currency swap has beendesignated and is accounted for



as a hedge of the net investment in its European subsidiary. Hedges of net investments are accounted for similarly to cash flowhedges, with unrealized gains and losses included in other comprehensive income. Amounts included in other comprehensiveincome are reclassified to net income in the period when the foreign operation is disposed of or sold.

The Company also entered into a long-dated forward exchange contract by selling $39.6m and receiving US$30.0m asmeasured on the trade date, to fix the foreign exchange risk on a portion of the term loan borrowings over the term to maturity(December 2, 2024). Unrealized gains and losses in the fair value of the forward contract are recognized in selling, general andadministrative expenses in the statement of income (loss).

Net interest, finance and other costs

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



2020September 29,

2019September 27,

2020September 29,

2019$ $ $ $

Interest expenseShort-term borrowings 0.1 — 0.1 — Revolving facility 1.5 1.8 2.3 2.3 Term loan 1.8 1.9 3.6 4.4 Lease liabilities 2.4 2.1 4.7 4.2

Standby fees 0.3 0.1 0.6 0.3 Acceleration of unamortized costs ondebt extinguishment — — — 7.0 Interest income (0.2) — (0.3) (0.1)Other costs (note 11) 0.1 — 1.7 — Net interest, finance and other costs 6.0 5.9 12.7 18.1

Note 13. Shareholders' equityThe authorized and issued share capital of the Company are as follows:

Authorized

The authorized share capital of the Company consists of an unlimited number of subordinate voting shares without par value, anunlimited number of multiple voting shares without par value, and an unlimited number of preferred shares without par value,issuable in series.

Issued

Multiple voting shares - Holders of the multiple voting shares are entitled to 10 votes per multiple voting share. Multiple votingshares are convertible at any time at the option of the holder into one subordinate voting share. The multiple voting shares willautomatically be converted into subordinate voting shares when they cease to be owned by one of the principal shareholders. Inaddition, the multiple voting shares of either of the principal shareholders will automatically be converted to subordinate votingshares at such time as the beneficial ownership of that shareholder falls below 15% of the outstanding subordinate voting sharesand multiple voting shares outstanding, or additionally, in the case of DTR, when the President and Chief Executive Officer nolonger serves as a director of the Company or in a senior management position.



Subordinate voting shares - Holders of the subordinate voting shares are entitled to one vote per subordinate voting share.

The rights of the subordinate voting shares and the multiple voting shares are substantially identical, except for voting andconversion. Subject to the prior rights of any preferred shares, the holders of subordinate and multiple voting shares participateequally in any dividends declared and share equally in any distribution of assets on liquidation, dissolution, or winding up.

Share capital transactions for the two quarters ended September 27, 2020The transactions affecting the issued and outstanding share capital of the Company are described below:

(in millions of Canadiandollars, except share and pershare amounts)

Multiple voting shares Subordinate voting shares TotalNumber $ Number $ Number $

March 29, 2020 51,004,076 1.4 58,999,182 113.3 110,003,258 114.7 Exercise of stock options — — 130,179 1.0 130,179 1.0 Settlement of RSUs — — 11,901 — 11,901 — September 27, 2020 51,004,076 1.4 59,141,262 114.3 110,145,338 115.7

Share capital transactions for the two quarters ended September 29, 2019Normal course issuer bid

The Board of Directors had previously authorized the Company to initiate a normal course issuer bid, in accordance with therequirements of the Toronto Stock Exchange, to purchase up to 1,600,000 subordinate voting shares over the 12-month periodfrom May 31, 2019 to May 30, 2020. Purchased subordinate voting shares were cancelled.

During the two quarters ended September 29, 2019, the Company purchased 853,500 shares for cancellation at an averageprice per share of $45.35 for total cash consideration of $38.7m. The amount paid to purchase subordinate voting shares hasbeen charged to share capital at the average share capital amount per share outstanding of $1.6m, with the remaining $37.1mcharged to retained earnings. There were no shares purchased during the two quarters ended September 27, 2020.



The transactions affecting the issued and outstanding share capital of the Company are described below:

(in millions of Canadiandollars, except share and pershare amounts)

Multiple voting shares Subordinate voting shares TotalNumber $ Number $ Number $

March 31, 2019 51,004,076 1.4 59,106,998 111.2 110,111,074 112.6 Purchase of subordinatevoting shares — — (853,500) (38.7) (853,500) (38.7)Excess of purchase priceover average share capitalamount — — — 37.1 — 37.1 Exercise of stock options — — 375,328 1.4 375,328 1.4 Settlement of RSUs — — 3,550 — 3,550 — September 29, 2019 51,004,076 1.4 58,632,376 111.0 109,636,452 112.4

Note 14. Share-based paymentsThe Company has issued stock options to purchase subordinate voting shares under its incentive plans, prior to the public shareoffering on March 21, 2017, the Legacy Plan, and subsequently, the Omnibus Plan. All options are issued at an exercise pricethat is not less than market value at the time of grant and expire ten years after the grant date.

Legacy Plan

Under the terms of the Legacy Plan, options were granted to certain executives of the Company which are exercisable topurchase subordinate voting shares. The options vest contingent upon meeting the service, performance goals and exit eventconditions of the Legacy Plan. No new options will be issued under the Legacy Plan.

a) Service-vested options

Service-vested options are subject to the executive’s continuing employment and generally are scheduled to vest 40% onthe second anniversary of the date of grant, 20% on the third anniversary, 20% on the fourth anniversary and 20% on thefifth anniversary.

b) Performance-vested and exit event options

Performance-vested options that are tied to an exit event are eligible to vest pro rata on the same schedule as service-vested options, but do not vest until the exit event has occurred. All exit event conditions have been met, and nooutstanding options are subject to exit event conditions.

Other performance-vested options vest based on measurable performance targets that do not involve an exit event.Performance-vested options are subject to the executive’s continued employment.



Omnibus Plan

Under the terms of the Omnibus Plan, options are granted to certain employees of the Company which are exercisable topurchase subordinate voting shares. The options vest over four years contingent upon meeting the service conditions of theOmnibus Plan, 25% on each anniversary of the date of grant.

Stock option transactions are as follows:

Two quarters endedSeptember 27,

2020September 29,

2019

(in millions of Canadian dollars, except share andper share amounts)

Weightedaverage

exercise price Number of shares

Weightedaverage

exercise priceNumber of

sharesOptions outstanding, beginning of period $ 32.97 1,794,377 $ 15.75 2,037,665 Granted to purchase shares $ 37.19 1,244,975 $ 59.46 547,059 Exercised $ 2.81 (130,179) $ 2.25 (375,328)Cancelled $ 49.31 (86,671) $ 65.85 (16,969)Expired $ 56.29 (9,046) $ — — Options outstanding, end of period $ 35.65 2,813,456 $ 28.58 2,192,427

Restricted share units

Under the Omnibus Plan, the Company has granted RSUs to employees of the Company. The RSUs are treated as equityinstruments for accounting purposes. We expect that vested RSUs will be paid at settlement through the issuance of onesubordinate voting share per RSU. The RSUs vest over a period of three years, a third on each anniversary of the date of grant.

RSUs transactions are as follows:


2020September 29,

2019Number Number

RSUs outstanding, beginning of period 37,578 10,650 Granted 119,758 31,668 Settled (11,901) (3,550)Cancelled (5,452) (942)RSUs outstanding, end of period 139,983 37,826

Subordinate voting shares, to a maximum of 4,015,420 shares, have been reserved for issuance under equity incentive plans toselect employees of the Company, with vesting contingent upon meeting the service, performance goals and other conditions ofthe Plan.



Accounting for share-based awards

For the second and two quarters ended September 27, 2020, the Company recorded $2.9m and $4.7m respectively, ascontributed surplus and compensation expense for the vesting of stock options and RSUs (for the second and two quartersended September 29, 2019 - $2.1m and $4.0m, respectively). Share-based compensation expense is included in selling, generaland administrative expenses.

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

Two quarters ended(in millions of Canadian dollars, except share and per shareamounts)

September 27, 2020

September 29, 2019

Weighted average stock price valuation $ 37.19 $ 59.46 Weighted average exercise price $ 37.19 $ 59.46 Risk-free interest rate 0.32 % 1.50 %Expected life in years 5 5 Expected dividend yield — % — %Volatility 40 % 40 %Weighted average fair value of options issued $ 9.90 $ 18.19

Fair value for RSUs is determined based on the market value of the subordinate voting shares at the time of grant. As atSeptember 27, 2020, the weighted average fair value of the RSUs issued was $33.97 (September 29, 2019 - $45.49).

Note 15. Related party transactionsThe Company enters into transactions from time to time with its principal shareholders and organizations affiliated with membersof the Board of Directors by incurring expenses for business services. For the second and two quarters ended September 27,2020, the Company incurred expenses with related parties of $0.3m and $0.4m, respectively (for the second and two quartersended September 29, 2019 - $0.3m and $0.5m, respectively) from companies related to certain shareholders. Net balancesowing to related parties as at September 27, 2020 were $0.7m (September 29, 2019 - $0.5m, March 29, 2020 - $0.4m).

A lease liability due to the controlling shareholder of the acquired Baffin Inc. business (the "Baffin Vendor") for leased premiseswas $5.0m as at September 27, 2020 (September 29, 2019 - $5.7m, March 29, 2020 - $5.3m). For the second and two quartersended September 27, 2020, the Company paid principal and interest on the lease liability, net of rent concessions, and otheroperating costs to entities affiliated with the Baffin Vendor totaling $0.3m and $0.6m, respectively (for the second and twoquarters ended September 29, 2019 - $0.4m and $0.7m, respectively). No amounts were owing to Baffin entities as atSeptember 27, 2020, September 29, 2019, and March 29, 2020. Furthermore, $3.0m was paid to the Baffin Vendor onNovember 1, 2020 and charged to expense over two years.



Note 16. Financial instruments and fair valueManagement has assessed that the fair values of cash, trade receivables, and accounts payable and accrued liabilitiesapproximate their carrying amounts largely due to the short-term maturities of these instruments.

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

September 27, 2020

(in millions of Canadian dollars) Level 1 Level 2 Level 3 Carrying value Fair value $ $ $ $ $

Financial assetsCash 156.3 — — 156.3 156.3 Derivatives included in other currentassets — 4.2 — 4.2 4.2 Derivatives included in other long-termassets — 1.1 — 1.1 1.1 Financial liabilitiesDerivatives included in accounts payableand accrued liabilities — 7.2 — 7.2 7.2 Short-term borrowings — — 11.0 11.0 11.0 Derivatives included in other long-termliabilities — 3.6 — 3.6 3.6 Revolving facility — — 222.5 222.5 224.9 Term loan — — 151.2 151.2 152.3 Lease liabilities — — 266.7 266.7 266.7



September 29, 2019

(in millions of Canadian dollars) Level 1 Level 2 Level 3 Carrying value Fair value$ $ $ $ $

Financial assetsCash 34.2 — — 34.2 34.2 Derivatives included in other currentassets — 11.3 — 11.3 11.3 Derivatives included in other long-termassets — 4.6 — 4.6 4.6 Financial liabilitiesDerivatives included in accounts payableand accrued liabilities — 3.9 — 3.9 3.9 Short-term borrowings — — 17.8 17.8 17.8 Derivatives included in other long-termliabilities — 3.2 — 3.2 3.2 Revolving facility — — 177.7 177.7 179.4 Term loan — — 149.3 149.3 150.7 Lease liabilities — — 224.2 224.2 224.2

March 29, 2020

(in millions of Canadian dollars) Level 1 Level 2 Level 3 Carrying value Fair value $ $ $ $ $

Financial assetsCash 31.7 — — 31.7 31.7 Derivatives included in other currentassets — 11.3 — 11.3 11.3 Derivatives included in other long-termassets — 5.9 — 5.9 5.9 Financial liabilitiesDerivatives included in accounts payableand accrued liabilities — 19.0 — 19.0 19.0 Derivatives included in other long-termliabilities — 2.9 — 2.9 2.9 Term loan — — 158.1 158.1 159.3 Lease liabilities — — 227.9 227.9 227.9

There were no transfers between the levels of the fair value hierarchy.



Note 17. Financial risk management objectives and policiesThe Company’s primary risk management objective is to protect the Company’s assets and cash flow, in order to increase theCompany’s enterprise value.

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

Capital managementThe Company manages its capital, which consists of equity (subordinate voting shares and multiple shares voting shares), short-term borrowings, and long-term debt (the revolving facility and the term loan), with the objectives of safeguarding sufficient networking capital over the annual operating cycle and providing sufficient financial resources to grow operations to meet long-termconsumer demand. Management targets a ratio of trailing 52 or 53-week period adjusted EBITDAR (defined as earnings beforeinterest, taxes, depreciation and amortization, and rent expense) to net debt, reflecting the seasonal change in the business asnet working capital builds through the second fiscal quarter. The Board of Directors of the Company monitors the Company’scapital management on a regular basis. The Company will continually assess the adequacy of the Company’s capital structureand capacity and make adjustments within the context of the Company’s strategy, economic conditions, and risk characteristicsof the business.

Liquidity riskLiquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’sapproach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to satisfy therequirements for business operations, capital expenditures, debt service and general corporate purposes, under normal andstressed conditions. The primary source of liquidity is funds generated by operating activities; the Company also relies on short-term borrowings and the revolving facility as sources of funds for short term working capital needs. The Company continuouslyreviews 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 as at September 27,2020:

Contractual obligationsQ3 & Q4

2021 2022 2023 2024 2025 2026 Thereafter Total(in millions of Canadian dollars) $ $ $ $ $ $ $ $Accounts payable and accruedliabilities 163.6 — — — — — — 163.6 Short-term borrowings 11.0 — — — — — — 11.0 Revolving facility — — — — 224.9 — — 224.9 Term loan — — — — 152.3 — — 152.3 Note payable 3.0 — — — — — — 3.0 Interest commitments relating toborrowings 5.5 10.5 10.5 10.5 4.5 — — 41.5 Foreign exchange forward contracts 3.0 — — — 2.5 — — 5.5 Lease obligations 32.1 55.9 53.7 46.9 44.7 33.6 62.6 329.5 Pension obligation — — — — — — 2.6 2.6

Interest commitments are calculated based on the loan balance and the interest rate payable on the short-term borrowings,revolving facility and the term loan of 4.26%, 2.21% and 3.66%, respectively, as at September 27, 2020.

Letter of guarantee facility

On April 14, 2020, Canada Goose Inc. entered into a letter of guarantee facility in the amount of $10.0m. Letters of guaranteeare available for terms of up to twelve months and will be charged a fee equal to 1.2% per annum calculated against the faceamount and over the term of the guarantee. Amounts issued on the facility will be used to finance working capital requirementsthrough letters of guarantee, standby letters of credit, performance bonds, counter guarantees, counter standby letters of credit,or similar credits. The Company shall immediately reimburse the issuing bank for amounts drawn on issued letters ofguarantees. At September 27, 2020, the Company had $3.9m outstanding.

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

Credit risk arises from the possibility that certain parties will be unable to discharge their obligations. The Company manages itscredit risk through a combination of third party credit insurance and internal house risk. Credit insurance is provided by a thirdparty for customers and is subject to continuous monitoring of the credit worthiness of the Company's customers. Insurancecovers a specific amount of revenue, which may be less than the Company's total revenue with a specific customer. As atSeptember 27, 2020, accounts receivable totaling approximately $53.0m (September 29, 2019 - $110.4m, March 29, 2020 -$20.1m) were insured. Accounts receivable as at September 27, 2020 included $16.1m of receivables from governmentauthorities related to PPE sales which were not insured.

Credit insurance is subject to continuous review by the insurer and can be reduced or eliminated if, in the view of the insurer, thecustomer's credit worthiness has deteriorated. Upon receiving notification of credit insurance limit modifications, credit insuranceremains in place for 60 days.

(1)

(1)



During the two quarters ended September 27, 2020, the Company experienced significant reductions in the market availability ofcredit insurance for a number of its customers.

Complementary to the third party insurance, the Company routinely assesses the financial strength of its customers through acombination of third party financial reports, credit monitoring, publicly available information, and direct communication with thosecustomers. The Company establishes payment terms with customers to mitigate credit risk and continues to closely monitor itsaccounts receivable credit risk exposure.

Customer deposits are received in advance from certain customers for seasonal orders to further mitigate credit risk, and areapplied to reduce accounts receivable when goods are shipped. As at September 27, 2020, customer deposits of $8.1m(September 29, 2019 - $14.7m, March 29, 2020 - $2.1m) are included in accounts payable and accrued liabilities.

The aging of trade receivables is as follows:

Past due(in millions of Canadian dollars) Total Current < 30 days 31-60 days > 61 days

$ $ $ $ $Trade accounts receivable 91.5 69.4 15.5 6.1 0.5 Credit card receivables 3.1 3.1 — — — Government grant receivable 10.6 10.6 — — — Other receivables 11.7 11.7 — — — September 27, 2020 116.9 94.8 15.5 6.1 0.5

Trade accounts receivable 139.5 118.1 17.8 2.2 1.4 Credit card receivables 9.0 9.0 — — — Other receivables 1.0 1.0 — — — September 29, 2019 149.5 128.1 17.8 2.2 1.4

Trade accounts receivable 26.9 15.9 5.0 2.5 3.5 Credit card receivables 2.1 2.1 — — — Other receivables 5.1 5.1 — — — March 29, 2020 34.1 23.1 5.0 2.5 3.5



Trade accounts receivable factoring program

On December 23, 2019, a subsidiary of the Company in Europe entered into an agreement to factor, on a limited recourse basis,certain of its trade accounts receivable up to a limit of €20.0m in exchange for advanced funding equal to 100% of the principalvalue of the invoice. Accepted currencies include euros, British pounds sterling, and Swiss francs. The Company is charged afee of the applicable EURIBOR or LIBOR reference rate plus 1.15% per annum, based on the number of days between thepurchase date and the invoice due date, which is lower than the Company’s average borrowing rate under its revolving facility.The program is utilized to provide sufficient liquidity to support its international operating cash needs. Upon transfer of thereceivables, the Company receives cash proceeds and continues to service the receivables on behalf of the third-party financialinstitution. The program meets the derecognition requirements in accordance with IFRS 9, Financial Instruments as theCompany transfers substantially all the risks and rewards of ownership upon the sale of a receivable. These proceeds areclassified as cash flows from operating activities in the statement of cash flows.

For the two quarters ended September 27, 2020, the Company received cash proceeds from the sale of trade accountsreceivable with carrying values of $6.2m which were derecognized from the Company's statement of financial position. Fees ofless than $0.1m were incurred during the two quarters ended September 27, 2020 and included in net interest, finance and othercosts in the statement of income (loss). As at September 27, 2020, the outstanding amount of trade accounts receivablederecognized from the Company’s statement of financial position, but which the Company continues to service were cleared was$5.8m (March 29, 2020 - $2.4m).

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

Foreign exchange riskForeign exchange risk in operating cash flows

The Company’s Interim Financial Statements are expressed in Canadian dollars, but a substantial portion of the Company’srevenues, inventory purchases and expenses are denominated in other currencies, principally U.S. dollars, euros, British poundssterling, Swiss francs, Chinese yuan, and Hong Kong dollars. The Company has entered into forward foreign exchangecontracts to reduce the foreign exchange risk associated with revenues, purchases, and expenses denominated in thesecurrencies. Certain forward foreign exchange contracts were designated at inception and accounted for as cash flow hedges.The operating hedge program for the fiscal year ending March 28, 2021 was initiated during the fourth quarter of the 2019 fiscalyear.



The Company recognized the following unrealized gains in the fair value of derivatives designated as cash flow hedges in othercomprehensive income:

Second quarter ended Two quarters endedSeptember 27,

2020September 29,

2019September 27,

2020September 29,

2019(in millions of Canadiandollars) Net gain Tax expense Net gain Tax expense Net gain Tax expense Net gain Tax expense

$ $ $ $ $ $ $ $Forward foreign exchangecontracts designated ascash flow hedges 0.8 (0.1) 0.6 (0.9) 3.1 (0.9) 5.7 (2.0)

For the second and two quarters ended September 27, 2020, there were no amounts reclassified from other comprehensiveincome to selling, general and administrative expenses on derivatives designated as cash flow hedges (second and two quartersended September 29, 2019 - $0.6m and $0.6m, respectively).

For the second and two quarters ended September 27, 2020, unrealized gains of $0.6m and $1.2m, respectively (for the secondand two quarters ended September 29, 2019 - unrealized gains of $0.2m and $1.8m, respectively) on forward exchangecontracts that are not treated as hedges have been recorded selling, general and administrative expenses in the statement ofincome (loss).

Foreign currency forward exchange contracts outstanding as at September 27, 2020 related to operating cash flows are:

(in millions) Aggregate Amounts CurrencyForward contract to purchase Canadian dollars US$ 76.6 U.S. dollars

€ 70.4 euros

Forward contract to sell Canadian dollars US$ 36.2 U.S. dollars€ 31.9 euros

Forward contract to purchase euros CHF 1.4 Swiss francsCNY 379.9 Chinese yuan£ 22.9 British pounds sterlingHKD 36.9 Hong Kong dollarsSEK 4.2 Swedish kronor

Forward contract to sell euros CHF 6.5 Swiss francs£ 1.2 British pounds sterling



Revenues and expenses of all foreign operations are translated into Canadian dollars at the foreign currency exchange ratesthat approximate the rates in effect at the dates when such items are recognized. Appreciating foreign currencies relative to theCanadian dollar, to the extent they are not hedged, will positively impact operating income and net income, while depreciatingforeign currencies relative to the Canadian dollar will have the opposite impact.

Foreign exchange risk on borrowings

The Company hedges a portion of its exposure to foreign currency exchange risk on principal and interest payments on its termloan denominated in U.S. dollars (note 12).

The Company recognized the following unrealized gains and losses in the fair value of derivatives designed as hedginginstruments in other comprehensive income:


2020September 29,

2019September 27,

2020September 29,

2019(in millions ofCanadian dollars) Net loss Tax recovery Net gain Tax expense

Net gain(loss)

Tax (expense)recovery

Net gain(loss) Tax expense

$ $ $ $ $ $ $ $Cross-currency swapdesignated as a cashflow hedge (1.9) 0.3 1.1 (0.2) (4.0) 0.6 (0.2) — Euro-denominatedcross-currency swapdesignated as a netinvestment hedge (0.8) 0.1 1.5 (0.3) 0.8 (0.2) 1.4 (0.3)

The Company reclassified the following gains and losses from other comprehensive income on derivatives designated ashedging instruments to selling, general and administrative expenses:



2020September 29,

2019September 27,

2020September 29,

2019Loss (gain) from othercomprehensive income $ $ $ $Cross-currency swap designated as acash flow hedge 2.1 (1.3) 4.3 (0.1)



For the second and two quarters ended September 27, 2020, unrealized losses of $0.9m and $1.7m, respectively (for thesecond and two quarters ended September 29, 2019 - unrealized gains of $0.8m and $1.0m, respectively) in the fair value of thelong-dated forward exchange contract related to a portion of the term loan balance have been recognized in selling, general andadministrative expenses in the statement of income (loss).

Interest rate riskThe Company is exposed to interest rate risk related to the effect of interest rate changes on borrowings outstanding undershort-term borrowings, the revolving facility, and the term loan. As at September 27, 2020, the Company had $11.0moutstanding on the short-term borrowings, $224.9m on the revolving facility and $152.3m under the term loan. These currentlybear interest rates at 4.26%, 2.21%, and 3.66% respectively. Based on the weighted average amount of outstanding borrowingson our short-term borrowings during the two quarters ended September 27, 2020, a 1.00% increase in the average interest rateon our borrowings would have increased interest expense by less than $0.1m (two quarters ended September 29, 2019 - lessthan $0.1m). Correspondingly, a 1.00% increase in the average interest rate would have increased interest expense on therevolving facility and term loan by $0.9m and $0.8m, respectively (for the second and two quarters ended September 29, 2019 -$0.6m and $0.8m, respectively). Interest rate risk on the term loan is partially mitigated by cross-currency swap hedges. Theimpact on future interest expense as a result of future changes in interest rates will depend largely on the gross amount ofborrowings at that time.

Note 18. Selected cash flow informationChanges in non-cash operating items



2020September 29,

2019September 27,

2020September 29,

2019$ $ $ $

Trade receivables (84.5) (118.0) (80.7) (129.0) Inventories 12.9 0.5 (3.7) (98.9) Other current assets 0.8 1.4 (1.2) (1.3) Accounts payable and accrued liabilities 25.5 34.5 19.3 15.7 Provisions 5.0 5.1 0.6 2.6 Other — (0.6) 1.0 (0.8)Change in non-cash operating items (40.3) (77.1) (64.7) (211.7)



Note 19. Subsequent eventsAmendment to the term loan and related hedging transactions

On October 7, 2020, the Company entered into a refinancing amendment to the term loan to increase the aggregate principalamount to US$300.0m from US$113.8m. The amendment to the term loan increased the interest to a rate of LIBOR plus anapplicable margin of 4.25%, provided that LIBOR may not be less than 0.75%, and extended the maturity date to October 7,2027. On October 30, 2020, the Company terminated its existing derivative contracts associated with the previous term loan andentered into new derivative transactions to better align with the refinancing amendment to the term loan. The Company enteredinto a five-year cross-currency swap by selling US$270.0m bearing interest at LIBOR plus an applicable margin of 4.25%,provided that LIBOR may not be less than 0.75%, for a fixed rate debt bearing interest of 5.20% and a five-year forwardexchange contract to buy $368.5m, or US$270.0m in equivalent U.S. dollars as measured on the trade date to fix the foreignexchange risk on the portion of the term loan borrowings.


CANADA GOOSE HOLDINGS INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSFor the second and two quarters ended September 27, 2020

The following Management’s Discussion and Analysis (“MD&A”) for Canada Goose Holdings Inc. (“us,” “we,” “our,” “CanadaGoose” or the “Company”) is dated November 4, 2020 and provides information concerning our results of operations andfinancial condition for the second and two quarters ended September 27, 2020. All figures are presented in Canadian (“CAD”)dollars, unless otherwise noted. You should read this MD&A together with our unaudited condensed consolidated interimfinancial statements as at and for the second and two quarters ended September 27, 2020 (“Interim Financial Statements”) andour audited consolidated financial statements and the related notes for the fiscal year ended March 29, 2020 (“Annual FinancialStatements”). Additional information about Canada Goose is available on our website at www.canadagoose.com, on the SEDARwebsite at www.sedar.com, and on the EDGAR section of the U.S. Securities and Exchange Commission (the “SEC”) website atwww.sec.gov, including our Annual Report on Form 20-F for the year ended March 29, 2020 (“Annual Report”).

CAUTIONARY NOTE REGARDING FORWARD‑‑LOOKING STATEMENTSThis MD&A contains forward-looking statements. These statements are neither historical facts nor assurances of futureperformance. 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,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,”“would,” “could,” “should,” “continue,” and other similar expressions, although not all forward-looking statements contain theseidentifying words. These forward-looking statements include all matters that are not historical facts. They appear in many placesthroughout this MD&A and include statements regarding our intentions, beliefs or current expectations concerning, among otherthings, our results of operations, financial condition, liquidity, business prospects, growth, strategies, expectations regardingindustry trends and the size and growth rates of addressable markets, our business plan and our growth strategies, includingplans 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 continue operating our business amid the societal and economic disruption caused by the globaloutbreak of the novel coronavirus (“COVID-19”);

• 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; 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 oncircumstances that may or may not occur in the future. We believe that these risks and uncertainties include, but are not limitedto, those described in the “Risk Factors” section of our Annual Report and other risk factors described herein, which include, butare not limited to, the following risks:

• global disruptions, including the ongoing COVID-19 pandemic, significantly affecting numerous countries;

• potential re-closing of our retail stores and the retail stores of our wholesale partners during our peak selling seasonas a result of COVID-19 related restrictions imposed by local authorities;

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

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

• general economic conditions, including any further deterioration of economic conditions related to COVID-19 whichmay further affect discretionary consumer spending;

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

• we may not be able to satisfy changing consumer preferences;

• our indebtedness may adversely affect our financial condition;

• we may not be able to compete in our markets effectively;

• we may not be able to manage our growth effectively;

• our ability to maintain relationships with our select number of suppliers and wholesalers;

• our ability to procure high quality raw materials and certain finished goods globally;

• our ability to forecast our inventory needs;

• we may be unable to protect or preserve our brand image and proprietary rights;

• our ability to manage our product distribution through our wholesale partners and international distributors;

• the success of our new store openings;

• the success of our continued expansion into Greater China;

• global political events, including the impact of political disruptions in Hong Kong and recent protests in many NorthAmerican cities;

• the success of our marketing programs;

• our ability to manage our exposure to data security and cyber security events;

• the risk our business is interrupted because of a disruption at our headquarters;

• fluctuations in raw material costs, interest rates and currency exchange rates; and


• we may be unable to maintain effective internal controls over financial reporting.

Although we base the forward-looking statements contained in this MD&A on assumptions that we believe are reasonable, wecaution you that actual results and developments (including our results of operations, financial condition and liquidity, and thedevelopment of the industry in which we operate) may differ materially from those made in or suggested by the forward-lookingstatements contained in this MD&A. Additional impacts may arise that we are not aware of currently. The potential of suchadditional impacts intensifies the business and operating risks which we face, and these should be considered when reading theforward-looking statements contained in this MD&A. In addition, even if results and developments are consistent with theforward-looking statements contained in this MD&A, those results and developments may not be indicative of results ordevelopments in subsequent periods. As a result, any or all of our forward-looking statements in this MD&A may prove to beinaccurate. No forward-looking statement is a guarantee of future results. Moreover, we operate in a highly competitive andrapidly changing environment in which new risks often emerge. It is not possible for our management to predict all risks, nor canwe assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actualresults to differ materially from those contained in any forward-looking statements we may make.

You should read this MD&A and the documents that we reference herein completely and with the understanding that our actualfuture results may be materially different from what we expect. The forward-looking statements contained herein are made as ofthe date of this MD&A, and we do not assume any obligation to update any forward-looking statements except as required byapplicable laws.

BASIS OF PRESENTATION

The Interim Financial Statements are prepared in accordance with International Financial Reporting Standards (“IFRS”),specifically International Accounting Standard (“IAS”) 34, Interim Financial Reporting, as issued by the International AccountingStandards Board (“IASB”), and are presented in millions of Canadian dollars, except where otherwise indicated. The InterimFinancial Statements do not include all of the information required for Annual Financial Statements and should be read inconjunction with the Annual Financial Statements. Certain financial measures contained in this MD&A are non-IFRS financialmeasures and are discussed further under “Non-IFRS Financial Measures” below.

All references to “$”, “CAD” and “dollars” refer to Canadian dollars, “USD” and “US$” refer to U.S. dollars, “GBP” refer to Britishpounds sterling, “EUR” refer to euros, “CHF” refer to Swiss francs, “CNY” refer to Chinese yuan, ”RMB” refer to Chineserenminbi and “HKD” refer to Hong Kong dollars unless otherwise indicated. Certain totals, subtotals and percentages throughoutthis MD&A may not reconcile due to rounding.

All references to “fiscal 2018” are to the Company’s fiscal year ended March 31, 2018; to “fiscal 2019” are to the Company’sfiscal year ended March 31, 2019; to “fiscal 2020” are to the Company’s fiscal year ended March 29, 2020; and to “fiscal 2021”are to the Company’s fiscal year ending March 28, 2021.


SUMMARY OF FINANCIAL PERFORMANCE

The following table summarizes results of operations for the second and two quarters ended September 27, 2020 compared tothe second and two quarters ended September 29, 2019, and expresses the percentage relationship to revenue of certainfinancial statement captions. See “Results of Operations” for additional details.

CAD $ millions (except per share data)


2020September 29,

2019%

ChangeSeptember 27,

2020September 29,

2019%

ChangeStatement of Operations data:Revenue 194.8 294.0 (33.7)% 220.9 365.1 (39.5)%Gross profit 94.2 160.4 (41.3)% 99.0 201.3 (50.8)%Gross margin 48.4 % 54.6 % (620) bps 44.8 % 55.1 % (1,030) bpsOperating income (loss) 15.1 75.4 (80.0)% (44.2) 47.9 (192.3)%Net income (loss) 10.4 60.6 (82.8)% (39.7) 31.2 (227.2)% Earnings (loss) per shareBasic $ 0.09 $ 0.55 (83.6)% $ (0.36) $ 0.29 (224.1)%Diluted $ 0.09 $ 0.55 (83.6)% $ (0.36) $ 0.28 (228.6)%Other data:

EBIT 15.1 75.4 (80.0)% (44.2) 47.9 (192.3)%Adjusted EBIT 15.7 79.2 (80.2)% (30.8) 53.3 (157.8)%Adjusted EBIT margin 8.1 % 26.9 % (1,880) bps (13.9)% 14.6 % (2,850) bpsAdjusted net income (loss) 11.5 63.6 (81.9)% (26.9) 40.8 (165.9)%Adjusted net income (loss)per basic share $ 0.10 $ 0.58 (82.8)% $ (0.24) $ 0.37 (164.9)%Adjusted net income (loss)per diluted share $ 0.10 $ 0.57 (82.5)% $ (0.24) $ 0.37 (164.9)%

See “Non-IFRS Financial Measures” for a description of these measures and a reconciliation to the nearest IFRS measure.

Segments

Our reporting segments align with our sales channels: Direct-to-Consumer (“DTC”), Wholesale, and Other. We measure eachreportable operating segment’s performance based on revenue and operating income. As at September 27, 2020, our DTCsegment includes sales to customers through our 31 national e-commerce markets and 25 directly operated retail stores acrossNorth America, Europe, and Asia. Through our wholesale segment, we sell to a mix of retailers, including major luxurydepartment stores, outdoor specialty stores, individual shops, and to international distributors.

In the fourth quarter of fiscal 2020, the Company revised the previously disclosed Unallocated segment to the Other segment.The Other segment comprises sales and costs not directly allocated to the DTC or Wholesale channels, such as sales toemployees and sales of personal protective equipment ("PPE") in response to COVID-19, and selling, general andadministrative

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(“SG&A”) expenses not directly allocated to the DTC or Wholesale segments. The Other segment includes the cost of marketingexpenditures and product development to build brand awareness across all segments, corporate costs in support ofmanufacturing operations, other corporate costs and foreign exchange gains and losses not specifically associated with DTC orWholesale segment operations. It also includes costs incurred as a consequence of the COVID-19 pandemic including overheadcosts resulting from the temporary closure of our manufacturing facilities. Comparative information has been restated to conformwith the presentation adopted in the current year.

Factors Affecting our Performance

We believe that our performance depends on many factors including those discussed below.

• COVID-19 pandemic. Globally, public health officials have imposed restrictions and recommended precautions to mitigatethe spread of the ongoing COVID-19 pandemic, especially when congregating in heavily populated areas, such as shoppingmalls and lifestyle centres. As a result, our retail stores are operating with restrictive and precautionary measures in placesuch as reduced operating hours, physical distancing, enhanced cleaning and sanitation, and limited occupancy levels. Wehave also experienced a significant reduction to wholesale shipments due to COVID-19 disruptions to partner operations.These circumstances have had material adverse consequences on our results of operations for the two quarters endedSeptember 27, 2020 and are likely to negatively impact future fiscal periods as disruptions and prolonged consequencesassociated with the COVID-19 pandemic continue. Disruptions could also affect e-commerce shipments due to issues withfulfillment associated with the COVID-19 pandemic. The extent of the impact will depend on future developments, which arehighly uncertain and out of our control, including, among others, the duration and intensity of the COVID-19 pandemic.

We continue to monitor the situation and work closely with local authorities to prioritize the safety of our people and ourguests. During the fourth quarter of fiscal 2020, we temporarily reduced operating hours for our retail locations in MainlandChina and closed our retail locations in North America and Europe. We began a gradual reopening of these locations duringthe first quarter of fiscal 2021 in accordance with guidance from local authorities, with all of our retail locations operating bythe end of the second quarter of fiscal 2021. In response to recent government restrictions in France, England, and Italymandating closures of non-essential business and stay-at-home orders, our Paris and London stores closed againtemporarily as of October 30, 2020 and November 5, 2020, respectively, and our Milan store is expected to close as ofNovember 6, 2020. It is possible that further store closures may be required in response to government orders in the othercountries in which we operate. Any such government orders could similarly impact our wholesale partners in these regions.We also temporarily closed our manufacturing facilities across Canada in March 2020, partially reopening them in April 2020for the production of PPE. During the second quarter of fiscal 2021, we began a limited restart of the production of outerwearalongside PPE at all of our facilities. All of our manufacturing facilities are currently in operation.

In response to COVID-19, various government programs globally have been announced to provide financial relief for affectedbusinesses. The most significant relief measure which the Company qualifies for is the Canada Emergency Wage Subsidy("CEWS") under the COVID-19 Economic Response Plan in Canada. For the second and two quarters ended September 27,2020, the Company recognized payroll subsidies totaling $12.0m and


$20.7m, respectively, under this wage subsidy program and similar plans in other jurisdictions. These subsidies wererecorded as a reduction to the associated wage costs which we incurred during the second and two quarters endedSeptember 27, 2020, and were recognized in cost of sales ($7.8m and $9.1m respectively), SG&A expenses ($4.1m and$11.2m respectively), and other costs ($0.1m and $0.4m respectively). We have also received rent concessions in the formof abatements and deferrals and will consider seeking further rent relief as we continue to monitor the impact of COVID-19.Rent concessions of $1.7m and $2.4m were recognized in the statement of income (loss) for the second and two quartersended September 27, 2020, respectively.

• Global political events and other disruptions. We are conscious of risks related to social, economic, and political instability,including geopolitical tensions, regulatory matters, market volatility, and social unrest that are affecting consumer spending incertain countries and travel corridors. We have been, and may in the future, be impacted by widespread protests such as thepolitical disruptions in Hong Kong which began in 2019 and the recent protests that have occurred in many North Americancities. To the extent that such disruptions persist, we expect that our operations and traffic at our retail stores may beimpacted.

• Market development. Our market development strategy has been a key driver of our recent revenue growth and we plan tocontinue to execute our global expansion strategy, though such expansion has been delayed and may be delayed furtherdue to COVID-19. Across our various markets, we intend to continue increasing brand awareness and activating localmarkets while expanding our distribution globally.

• Growth in our DTC Channel. We intend to continue expanding retail and e-commerce access globally, though the scale ofsuch retail expansion has been impacted and may be delayed due to COVID-19. This is expected to further alter theseasonality of our financial performance, as customers tend to purchase goods in retail stores and on e-commerce sites at ahigher rate in our third and fourth fiscal quarters, compared to the wholesale channel, where products are primarily deliveredto wholesale partners in the second and third quarters ahead of their peak selling season.

• New Products. We intend to continue investing in innovation and the development and introduction of new products acrossstyles, uses, and climates. Additionally, we continue to sell Baffin branded footwear through Baffin’s own distinct saleschannels. We are also planning to develop a separate Canada Goose footwear offering, leveraging Baffin’s infrastructure,processes, and technology. We expect that certain new products may carry a lower gross margin per unit relative to ourlong-standing styles which are produced in significantly higher volumes.


• Seasonality. We experience seasonal fluctuations in our revenue and operating results and have historically realized asignificant portion of our annual wholesale revenue during our second and third fiscal quarters, and our annual DTC revenuein our third and fourth fiscal quarters. We generated 77.9%, 75.8%, and 74.2% of our consolidated revenue in the combinedsecond and third fiscal quarters of fiscal 2020, fiscal 2019, and fiscal 2018 respectively. Because of seasonal fluctuations inrevenue and fixed costs associated with our business, particularly the headcount growth and premises costs associated withour expanding DTC channel, we typically experience negative and substantially reduced net income and adjusted EBIT inthe first and fourth quarters, respectively. As a result of our seasonality, changes that impact gross margin and adjustedEBIT can have a disproportionate impact on the quarterly results when they are recorded in our off-peak revenue periods.Disruptions from the COVID-19 pandemic may alter historical seasonality patterns.

Adjusted EBIT is a non-IFRS measure. See “Non-IFRS Financial Measures” for a description of these measures.

Guided by expected demand and wholesale orders, we have historically manufactured on a linear basis throughout the fiscalyear. Net working capital requirements typically increase as inventory builds. We finance these needs through a combinationof cash on hand and borrowings on the Revolving Facility and the uncommitted loan facility in China (the “Short-termBorrowings”). Historically, cash flows from operations have been highest in the third and fourth fiscal quarters of the fiscalyear due to revenue from the DTC channel and the collection of receivables from wholesale revenue earlier in the year.

• Developments in international trade. We continue to prepare for the impact on our operations in Europe and the U.K. as aresult of the British exit from the European Union (“Brexit”). Duty savings continue for U.S. shipments under the UnitedStates-Mexico-Canada Agreement (“USMCA”). We continue to benefit from reduced tariffs on certain of our productsimported into Europe under the Canada-European Union Comprehensive Economic and Trade Agreement (“CETA”) whichentered into force provisionally on September 21, 2017 and is pending ratification by certain EU countries. We monitordevelopments in international trade in countries where we operate that could have an impact on our business.

• Foreign Exchange. We sell a significant portion of our products to customers outside of Canada, which exposes us tofluctuations in foreign currency exchange rates. In fiscal years 2020, 2019, and 2018, we generated 62.3%, 58.0%, and53.7%, respectively, of our revenue in currencies other than Canadian dollars. Historically, most of our wholesale revenuewas derived from orders made prior to the beginning of the fiscal year. This high degree of visibility into our anticipated futurecash flows from wholesale operations is now significantly less certain given the current economic environment. Most of ourraw materials are sourced outside of Canada, primarily in U.S. dollars, and SG&A expenses are typically denominated in thecurrency of the country in which they are incurred. As part of our risk management program, we have entered into foreignexchange derivative contracts to manage certain of our exposures to exchange rate fluctuations for future foreign currencytransactions, which is intended to reduce the variability of our operating costs and future cash flows denominated in localcurrencies. We continue to monitor our risk management program to take into account the prevailing global uncertainty ofCOVID-19.

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We are exposed to translation and transaction risks associated with foreign currency exchange fluctuations on the Chineserenminbi denominated principal and interest amounts payable on our Short-term Borrowings and U.S. dollar denominatedprincipal and interest amounts payable on our Revolving Facility and senior secured term loan facility (the “Term LoanFacility”). The Company has entered into foreign exchange cross-currency swap and forward contracts to hedge a portion ofthe exposure to foreign currency exchange and interest rate risk on the principal amount of the Term Loan Facility. See“Quantitative and Qualitative Disclosures about Market Risk - Foreign Exchange Risk” below.

The main foreign currency exchange rates that impact our business and operations as at and for the second and twoquarters ended September 27, 2020 and for the year ended March 29, 2020 are summarized below:

Foreign currency exchange rate to $1.00 CADFiscal 2021

Average Rate Closing Rate

Currency Q1 Q2 Q3 Q4 2021September 27,

2020USD/CAD 1.3859 1.3316 — — 1.3588 1.3396 EUR/CAD 1.5256 1.5579 — — 1.5418 1.5575 GBP/CAD 1.7203 1.7212 — — 1.7208 1.7038 CHF/CAD 1.4378 1.4486 — — 1.4432 1.4422 CNY/CAD 0.1955 0.1926 — — 0.1941 0.1963 HKD/CAD 0.1788 0.1718 — — 0.1753 0.1728

Foreign currency exchange rate to $1.00 CADFiscal 2020

Average Rate Closing Rate

Currency Q1 Q2 Q3 Q4 2020March 29,

2020USD/CAD 1.3375 1.3206 1.3200 1.3442 1.3306 1.4056 EUR/CAD 1.5032 1.4677 1.4617 1.4811 1.4784 1.5525 GBP/CAD 1.7190 1.6280 1.7004 1.7185 1.6915 1.7353 CHF/CAD 1.3345 1.3394 1.3338 1.3887 1.3491 1.4666 CNY/CAD 0.1960 0.1882 0.1874 0.1925 0.1910 0.1981 HKD/CAD 0.1706 0.1687 0.1687 0.1730 0.1702 0.1813

Source: Bank of Canada


Components of Our Results of OperationsRevenue

DTC revenue consists of sales through our e-commerce operations and retail stores. Revenue through e-commerce operationsand retail stores is recognized upon delivery of the goods to the customer and when consideration is received, net of anestimated provision for sales returns.

Wholesale revenue comprises sales to third party resellers, which includes retailers and distributors of our products. Wholesalerevenue from the sale of goods, net of an estimated provision for sales returns, discounts, and allowances, is recognized whenthe control of the goods has been transferred to the reseller, which, depending on the terms of the agreement with the reseller,occurs when the products have been shipped to the reseller, are picked up from our third party warehouse, or arrive at thereseller’s facilities.

Other revenue comprises sales not directly allocated to the DTC or wholesale segments, such as sales to employees and salesof PPE to federal, provincial, and local health authorities.

Gross Profit

Gross profit is our revenue less cost of sales. Cost of sales comprises the cost of manufacturing our products, including rawmaterials, direct labour, and overhead, plus freight, duties, and non-refundable taxes incurred in delivering the goods todistribution centres managed by third parties or to our retail stores. Product development costs, primarily employee salaries andbenefits, included in inventories and intangible assets are being recognized in cost of sales accordingly. Beginning in fiscal2021, incurred product development costs, primarily employee salaries and benefits, are recognized in SG&A expenses. Cost ofsales also includes depreciation on our manufacturing right-of-use assets and plant assets as well as inventory provisions, andallowances related to obsolescence and shrinkage. The primary drivers of our cost of sales are the costs of raw materials (whichare sourced in both Canadian dollars and U.S. dollars), manufacturing labour rates in the provinces of Canada, and theallocation of overhead. Gross margin measures our gross profit as a percentage of revenue. Inventory acquired in connectionwith the Baffin acquisition (November 2018) was recorded at its fair value, measured as net realizable value, less costs to sell.As the opening inventory has been sold, the gross profit otherwise recognized without the inventory valuation adjustment hasbeen reduced by the associated gross profit and gross margin.

SG&A Expenses

SG&A expenses consist of selling costs to support our customer relationships and to deliver our products to our e-commercecustomers, retail stores, and wholesale partners. It also includes our marketing and brand investment activities and thecorporate infrastructure required to support our ongoing operations. Foreign exchange gains and losses are recorded in SG&Aand comprise the translation of assets and liabilities denominated in currencies other than the functional currency of theCompany or its subsidiaries, including cash balances, the Short-term Borrowings, the Term Loan Facility, a portion of ourRevolving Facility, mark-to-market adjustments on derivative contracts, gains or losses associated with our term loan hedges,and realized gains on settlement of foreign currency denominated assets and liabilities.

Selling costs, other than headcount-related costs, generally correlate to revenue timing and previous to fiscal 2021, wouldtypically experience similar seasonal trends. As a percentage of sales, we expect these selling costs to change as our businessevolves. This change has been and is expected to be primarily driven by the expansion of our DTC segment, including the


investment required to support e-commerce sites and retail stores. Retail store costs are mostly fixed and are incurredthroughout the year.

General and administrative expenses represent costs incurred in our corporate offices, primarily related to marketing, personnelcosts (including salaries, variable incentive compensation, benefits, and share-based compensation), technology support, andother professional service costs. We have invested considerably in this area to support the growing volume and complexity ofour business and anticipate continuing to do so in the future. Beginning in fiscal 2021, incurred product development costs,primarily employee salaries and benefits, are recognized in SG&A expenses.

Depreciation and amortization

Depreciation and amortization represent the economic benefit incurred in using the Company’s property, plant and equipment,intangible assets, and right-of-use assets. We expect depreciation and amortization to increase, primarily driven by theexpansion of our DTC segment and information technology-related expenditures to support growth.

Operating Income

Operating income is our gross profit less SG&A expenses and depreciation and amortization.

Net interest, finance and other costs

Net interest, finance and other costs represents interest expense on our borrowings including the Short-term Borrowings, theRevolving Facility, the Term Loan Facility, and lease liabilities, as well as standby fees, net of interest income. In addition,corporate restructuring costs have been recognized beginning in fiscal 2021.

Income Taxes

We are subject to income taxes in the jurisdictions in which we operate and, consequently, income tax expense is a function ofthe allocation of taxable income by jurisdiction and the various activities that impact the timing of taxable events.


RESULTS OF OPERATIONS

For the second quarter ended September 27, 2020 compared to the second quarter ended September 29, 2019

The following table summarizes results of operations and expresses the percentage relationship to revenue of certain financialstatement captions. Basis points (“bps”) expresses the change between percentages.

CAD $ millions (except share and per share data)

Second quarter ended

$ Change % ChangeSeptember 27,

2020September 29,

2019Statement of Operations data:Revenue 194.8 294.0 (99.2) (33.7)%Cost of sales 100.6 133.6 33.0 24.7%Gross profit 94.2 160.4 (66.2) (41.3)%Gross margin 48.4 % 54.6 % (620) bps

Selling, general and administrative expenses 62.4 73.5 11.1 15.1%SG&A expenses as % of revenue 32.0 % 25.0 % (700) bps

Depreciation and amortization 16.7 11.5 (5.2) (45.2)%Operating income 15.1 75.4 (60.3) (80.0)%Operating margin 7.8 % 25.6 % (1,780) bps

Net interest, finance and other costs 6.0 5.9 (0.1) (1.7)%Income before income taxes 9.1 69.5 (60.4) (86.9)%Income tax (recovery) expense (1.3) 8.9 10.2 114.6%Effective tax rate (14.3)% 12.8 % 2,710 bps

Net income 10.4 60.6 (50.2) (82.8)%Other comprehensive income (loss) 2.1 (2.6) 4.7 180.8%Comprehensive income 12.5 58.0 (45.5) (78.4)% Earnings (loss) per share

Basic $ 0.09 $ 0.55 (0.46) (83.6)%Diluted $ 0.09 $ 0.55 (0.46) (83.6)%

Weighted average number of shares outstandingBasic 110,143,728 109,539,715 Diluted 110,888,447 110,831,032

Other data:EBIT 15.1 75.4 (60.3) (80.0)%Adjusted EBIT 15.7 79.2 (63.5) (80.2)%Adjusted EBIT margin 8.1 % 26.9 % (1,880) bps

Adjusted net income 11.5 63.6 (52.1) (81.9)%Adjusted net income per basic share $ 0.10 $ 0.58 (0.48) (82.8)%Adjusted net income per diluted share $ 0.10 $ 0.57 (0.47) (82.5)%


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Revenue

Revenue for the second quarter ended September 27, 2020 was $194.8m, a decrease of $99.2m, or 33.7%, from $294.0m forthe second quarter ended September 29, 2019. Revenue generated from our DTC and Wholesale segments decreased due tothe COVID-19 factors described below, partially offset by $28.8m of PPE sales in our Other segment.

Second quarter ended $ Change % Change

CAD $ millionsSeptember 27,

2020September 29,

2019 As reported

Foreignexchange

impactIn constantcurrency As reported

In constantcurrency

DTC 46.2 74.2 (28.0) (0.8) (28.8) (37.7) % (38.8) %Wholesale 118.5 218.1 (99.6) (3.2) (102.8) (45.7) % (47.1) %Other 30.1 1.7 28.4 — 28.4 Total revenue 194.8 294.0 (99.2) (4.0) (103.2) (33.7) % (35.1) %

Constant currency revenue is a non-IFRS financial measure. See “Non-IFRS Financial Measures” for a description of thismeasure.

DTC

Revenue from our DTC segment for the second quarter ended September 27, 2020 was $46.2m compared to $74.2m for thesecond quarter ended September 29, 2019. The decrease of $28.0m was driven by COVID-19 disruptions globally in the secondquarter ended September 27, 2020. Revenue was negatively impacted by lower retail traffic, reduced store operating hours, andlimited occupancy levels, partially offset by the incremental revenue generated from 25 retail stores open in the current quartercompared to 16 retail stores in the comparative quarter. The e-commerce channel experienced growth of over 10.0% from thecomparative quarter.

Wholesale

Revenue from our Wholesale segment for the second quarter ended September 27, 2020 was $118.5m compared to $218.1mfor the second quarter ended September 29, 2019. The decrease of $99.6m was due to the continued impact of COVID-19including the significant reduction in the planned order book and requests from partners and international distributors for latershipment timing relative to the comparative quarter.

Other

Revenue from our Other segment for the second quarter ended September 27, 2020 was $30.1m compared to $1.7m for thesecond quarter ended September 29, 2019. The increase of $28.4m was attributable to $28.8m of PPE sales in support ofCOVID-19 response efforts in the second quarter of fiscal 2021, partially offset by a decrease in sales to employees from thecomparative quarter.

(1) (1)

(1)


Revenue by geography

Second quarter ended $ Change % Change


2020September 29,

2019 As reported

Foreignexchange


In constantcurrency

Canada 66.3 91.2 (24.9) — (24.9) (27.3) % (27.3) %United States 37.8 87.9 (50.1) (0.1) (50.2) (57.0) % (57.1) %Asia 41.3 48.9 (7.6) (0.4) (8.0) (15.5) % (16.4) %Europe and Restof World

49.4 66.0 (16.6) (3.5) (20.1) (25.2) % (30.5) %

Total revenue 194.8 294.0 (99.2) (4.0) (103.2) (33.7) % (35.1) %

Constant currency revenue is a non-IFRS financial measure. See “Non-IFRS Financial Measures” for a description of thesemeasures.

Revenue decreased across all geographic regions for the second quarter ended September 27, 2020 compared to the secondquarter ended September 29, 2019 due to the impact of the COVID-19 factors described above. Revenue generated in Canadain the second quarter of fiscal 2021 included PPE sales of $28.8m. The decline in revenue was driven by lower revenue from theWholesale segment globally, partially offset in Asia by a 19.3% increase in DTC revenue generated from Greater China.

Gross Profit

Gross profit and gross margin for the second quarter ended September 27, 2020 were $94.2m and 48.4%, respectively,compared to $160.4m and 54.6%, respectively, for the second quarter ended September 29, 2019. The decrease in gross profitwas attributable to the decline in revenue noted above, partially offset by $7.8m of government payroll subsidies. The decreasein gross margin resulted from a higher proportion of Other revenue relative to the comparative quarter, partially offset by a higherDTC gross margin. Excluding the impact of the sale of PPE, gross margin was 56.1%, 150 bps above the comparative quarter,reflecting a higher proportion of DTC gross profit than wholesale gross profit in the current quarter.

Second quarter endedSeptember 27,

2020September 29,

2019CAD $ millions Gross profit Gross margin Gross profit Gross margin $ Change $ ChangeDTC 35.5 76.8 % 56.1 75.6 % (20.6) (36.7)%Wholesale 56.4 47.6 % 103.8 47.6 % (47.4) (45.7)%Other 2.3 7.6 % 0.5 29.4 % 1.8 360.0 %Total gross profit 94.2 48.4 % 160.4 54.6 % (66.2) (41.3)%

DTC

Gross profit in our DTC segment was $35.5m for the second quarter ended September 27, 2020 compared to $56.1m for thesecond quarter ended September 29, 2019. The decrease in DTC gross profit was driven by the decline in segment revenue asa result of the COVID-19 factors

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(1)


described above. The increase in gross margin was attributable to $0.8m (+170 bps) of government payroll subsidies, partiallyoffset by $0.4m (-90 bps) of higher costs per unit as production levels were limited and also impacted by COVID-19 safetyprotocols at our manufacturing facilities.

Wholesale

Gross profit in our Wholesale segment was $56.4m for the second quarter ended September 27, 2020 compared to $103.8m forthe second quarter ended September 29, 2019. The decrease in gross profit was attributable to the decline in segment revenueas a result of the COVID-19 factors described above. Gross margin was consistent with the comparative quarter and included$7.0m (+570 bps) of government payroll subsidies, offset by $3.8m (-310 bps) of higher costs per unit as production levels werelimited and also impacted by COVID-19 safety protocols at our manufacturing facilities. Additionally, gross margin was impactedby a higher proportion of distributor sales at a lower gross margin relative to the comparative quarter of $2.2m (-180bps).

Other

Gross profit and gross margin in our Other segment were $2.3m and 7.6%, respectively, for the second quarter endedSeptember 27, 2020. PPE gross profit and gross margin were $1.0m and 3.5%, respectively. In the comparative quarter, grossprofit and gross margin from employee sales in our Other segment were $0.5m and 29.4%, respectively.

SG&A Expenses

SG&A expenses were $62.4m for the second quarter ended September 27, 2020 compared to $73.5m for the second quarterended September 29, 2019. The decrease of $11.1m or 15.1% was attributable to corporate initiatives to reduce costs acrossthe business in response to COVID-19, supplemented by $4.1m of government payroll subsidies. SG&A expenses in the secondquarter ended September 27, 2020 included $1.0m of product development costs and $0.7m of costs related to the transition oflogistics, warehousing, and freight forwarding to new agencies to enhance our global distribution structure with no comparablecosts in the second quarter of fiscal 2020.


2020September 29,

2019

CAD $ millions Reported% of segment

revenue Reported% of segment

revenue $ Change % ChangeDTC 15.8 34.2 % 17.5 23.6 % 1.7 9.7 %Wholesale 10.6 8.9 % 12.8 5.9 % 2.2 17.2 %Other 36.0 43.2 7.2 16.7 %Total SG&A expenses 62.4 32.0 % 73.5 25.0 % 11.1 15.1 %

DTC

SG&A expenses in our DTC segment for the second quarter ended September 27, 2020 were $15.8m compared to $17.5m forthe second quarter ended September 29, 2019, a decrease of $1.7m, or 9.7%. The decrease was attributable to $1.7m ofsavings from rent abatements and $0.8m of government payroll subsidies, partially offset by increased investment in e-commerce


infrastructure. COVID-19 related temporary store closure and pre-store opening costs of $0.2m and $1.4m, respectively, wererecognized in the second quarter of fiscal 2021 compared to pre-store opening costs of $1.2m in the comparative quarter. SG&Aexpenses as a percentage of DTC segment revenue increased to 34.2% as a result of incremental fixed operating costs relatedto 25 retail stores in the current quarter from 16 retail stores in the comparative quarter and lower revenue. This was partiallyoffset by a decrease in variable costs as retail revenue volumes declined as well as rent abatements and payroll subsidiesdescribed previously.

Wholesale

SG&A expenses in our Wholesale segment were $10.6m for the second quarter ended September 27, 2020 compared to$12.8m for the second quarter ended September 29, 2019. The decrease of $2.2m or 17.2% was attributable to corporateinitiatives to reduce costs across the business in response to COVID-19, supplemented by $0.6m of government payrollsubsidies.

Other

SG&A expenses in our Other segment, which include unallocated corporate expenses, were $36.0m for the second quarterended September 27, 2020 compared to $43.2m for the second quarter ended September 29, 2019. The decrease of $7.2m or16.7% was attributable to cost reduction efforts in response to COVID-19, including a $4.3m reduction in marketing costs as wellas $2.7m of government payroll subsidies, partially offset by $1.0m of product development costs.


Depreciation and amortization was $16.7m for the second quarter ended September 27, 2020 compared to $11.5m for thesecond quarter ended September 29, 2019, an increase of $5.2m. Of the increase, $4.0m was driven by the expansion of theretail network and information technology-related expenditures to support growth. Depreciation expense on right-of-use assets of$1.4m and $0.2m was related to pre-store opening costs and COVID-19 temporary store closures, respectively, in the secondquarter ended September 27, 2020 compared to $2.3m of pre-store opening costs in the second quarter ended September 29,2019.


2020September 29,

2019CAD $ millions Reported Reported $ Change % ChangeDTC 12.6 8.6 (4.0) (46.5)%Wholesale 0.9 0.6 (0.3) (50.0)%Other 3.2 2.3 (0.9) (39.1)%Total depreciation and amortization 16.7 11.5 (5.2) (45.2)%


Operating Income and Margin

Operating income and operating margin were $15.1m and 7.8% for the second quarter ended September 27, 2020 compared tooperating income of $75.4m and 25.6% for the second quarter ended September 29, 2019. Operating income and operatingmargin decreased as a result of reduced revenue due to the COVID-19 related factors described previously.


2020September 29,

2019

CAD $ millionsOperating

income (loss)Operating

marginOperating


margin $ Change % ChangeDTC 7.1 15.4 % 30.0 40.4 % (22.9) (76.3)%Wholesale 44.9 37.9 % 90.4 41.4 % (45.5) (50.3)%Other (36.9) (45.0) 8.1 18.0 %Total operating income 15.1 7.8 % 75.4 25.6 % (60.3) (80.0)%

DTC

DTC segment operating income was $7.1m for the second quarter ended September 27, 2020 compared to operating income of$30.0m for the second quarter ended September 29, 2019. The decrease of $22.9m in operating income was driven by thedecline in revenue, partially offset by $1.7m of savings from rent abatements and $1.6m of government payroll subsidies. Pre-store opening costs and COVID-19 related temporary store closure costs of $2.8m and $0.4m, respectively, were recognized inthe second quarter of fiscal 2021 compared to pre-store opening costs of $3.6m in the second quarter of fiscal 2020. The declinein DTC operating margin reflects fixed cost deleverage as a result of lower revenue.

Wholesale

Wholesale segment operating income was $44.9m for the second quarter ended September 27, 2020 compared to operatingincome of $90.4m for the second quarter ended September 29, 2019. The decrease of $45.5m in operating income wasattributable to the decline in revenue, partially offset by cost reduction efforts in response to COVID-19 and supplemented by$7.6m of government payroll subsidies. The decline in operating margin reflects fixed cost deleverage as a result of lowerrevenue.

Other

Other segment operating loss was $(36.9)m for the second quarter ended September 27, 2020 compared to $(45.0)m for thesecond quarter ended September 29, 2019. The decrease in operating loss was attributable to cost saving initiatives across thebusiness in response to COVID-19 as well as $2.7m of government payroll subsidies, partially offset by $1.0m of productdevelopment costs.

Net Interest, Finance and Other Costs

Net interest, finance and other costs were $6.0m for the second quarter ended September 27, 2020 compared to $5.9m for thesecond quarter ended September 29, 2019. Excluding the impact of interest on lease liabilities of $2.4m for the second quarterended September 27, 2020


and $2.1m for the second quarter ended September 29, 2019, interest charges decreased by $0.2m as a result of a loweraverage interest rate and lower borrowings from the comparative quarter.

Income Taxes

Income tax recovery was $(1.3)m for the second quarter ended September 27, 2020 compared to income tax expense of $8.9mfor the second quarter ended September 29, 2019. For the second quarter ended September 27, 2020, the effective andstatutory tax rates were (14.3)% and 25.5%, respectively, compared to 12.8% and 25.4% for the second quarter endedSeptember 29, 2019. Given our global operations, the effective tax rate is largely impacted by our profit or loss in taxablejurisdictions relative to the applicable tax rates.

Net Income

Net income for the second quarter ended September 27, 2020 was $10.4m compared to $60.6m for the second quarter endedSeptember 29, 2019, driven by the factors described above.


For the two quarters ended September 27, 2020 compared to the two quarters ended September 29, 2019

The following table summarizes results of operations and expresses the percentage relationship to revenue of certain financialstatement captions.

CAD $ millions (except share and per share data)

Two quarters ended

$ Change % ChangeSeptember 27,

2020September 29,

2019Statement of Operations data:Revenue 220.9 365.1 (144.2) (39.5)%Cost of sales 121.9 163.8 41.9 25.6%Gross profit 99.0 201.3 (102.3) (50.8)%Gross margin 44.8 % 55.1 % (1,030) bps

Selling, general and administrative expenses 111.0 131.0 20.0 15.3%SG&A expenses as % of revenue 50.2 % 35.9 % (1,430) bps

Depreciation and amortization 32.2 22.4 (9.8) (43.8)%Operating (loss) income (44.2) 47.9 (92.1) (192.3)%Operating margin (20.0)% 13.1 % (3,310) bps

Net interest, finance and other costs 12.7 18.1 5.4 29.8%Income (loss) before income taxes (56.9) 29.8 (86.7) (290.9)%Income tax recovery (17.2) (1.4) 15.8 1,128.6%Effective tax rate (30.2)% (4.7)% 2,550 bps

Net (loss) income (39.7) 31.2 (70.9) (227.2)%Other comprehensive income 4.1 1.3 2.8 215.4%Comprehensive (loss) income (35.6) 32.5 (68.1) (209.5)% Earnings (loss) per share

Basic $ (0.36) $ 0.29 (0.65) (224.1)%Diluted $ (0.36) $ 0.28 (0.64) (228.6)%

Weighted average number of shares outstandingBasic 110,104,158 109,239,463 Diluted 110,104,158 110,675,394

Other data:EBIT (44.2) 47.9 (92.1) (192.3)%Adjusted EBIT (30.8) 53.3 (84.1) (157.8)%Adjusted EBIT margin (13.9)% 14.6 % (2,850) bps

Adjusted net (loss) income (26.9) 40.8 (67.7) (165.9)%Adjusted net (loss) income per basic share $ (0.24) $ 0.37 (0.61) (164.9)%Adjusted net (loss) income per diluted share $ (0.24) $ 0.37 (0.61) (164.9)%


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(1)


RevenueRevenue for the two quarters ended September 27, 2020 was $220.9m, a decrease of $144.2m, or 39.5%, from $365.1m for thetwo quarters ended September 29, 2019. Revenue generated from our DTC and Wholesale segments decreased due to COVID-19 factors described below, partially offset by $35.8m of PPE sales in our Other segment.

Two quarters ended $ Change % Change


2020September 29,

2019 As reported

Foreignexchange


In constantcurrency

DTC 56.6 109.0 (52.4) (1.2) (53.6) (48.1) % (49.2) %Wholesale 127.2 253.7 (126.5) (3.6) (130.1) (49.9) % (51.3) %Other 37.1 2.4 34.7 (0.1) 34.6 Total revenue 220.9 365.1 (144.2) (4.9) (149.1) (39.5) % (40.8) %


DTC

Revenue from our DTC segment for the two quarters ended September 27, 2020 was $56.6m compared to $109.0m for the twoquarters ended September 29, 2019. The decrease of $52.4m was driven by COVID-19 disruptions globally to retail traffic andstore operations, partially offset by incremental revenue from new retail stores opened since the second quarter of fiscal 2020.The e-commerce channel experienced growth of over 5.0% from the comparative period.

Wholesale

Revenue from our Wholesale segment for the two quarters ended September 27, 2020 was $127.2m compared to $253.7m forthe two quarters ended September 29, 2019. The decrease of $126.5m was due to the continued impact of COVID-19 includingthe significant reduction in the planned order book and requests from partners and international distributors for later shipmenttiming relative to the comparative period.

Other

Revenue from our Other segment for the two quarters ended September 27, 2020 was $37.1m compared to $2.4m for the twoquarters ended September 29, 2019. The increase of $34.7m was driven by $35.8m of PPE sales in support of COVID-19response efforts in fiscal 2021, partially offset by a decrease in sales to employees from the comparative period.

(1) (1)

(1)


Revenue by geography

Two quarters ended $ Change % Change


2020September 29,

2019 As reported

Foreignexchange


In constantcurrency

Canada 77.9 120.4 (42.5) — (42.5) (35.3) % (35.3) %United States 40.3 101.1 (60.8) (0.6) (61.4) (60.1) % (60.7) %Asia 51.2 67.0 (15.8) (0.7) (16.5) (23.6) % (24.6) %Europe and Restof World

51.5 76.6 (25.1) (3.6) (28.7) (32.8) % (37.5) %

Total revenue 220.9 365.1 (144.2) (4.9) (149.1) (39.5) % (40.8) %


Revenue decreased across all geographic regions for the two quarters ended September 27, 2020 compared to the two quartersended September 29, 2019 due to the impact of COVID-19 factors described above. Revenue generated in Canada in fiscal2021 included PPE sales of $35.8m. The decline in revenue was driven by the lower revenue from the Wholesale segmentglobally.

Gross ProfitGross profit and gross margin for the two quarters ended September 27, 2020 were $99.0m and 44.8%, respectively, comparedto $201.3m and 55.1%, respectively, for the two quarters ended September 29, 2019. The decrease in gross profit wasattributable to the decline in revenue noted above. The decrease in gross margin was a result of lower gross margins in theWholesale and Other segments and a decline in the proportion of DTC revenue to 25.6% from 29.9% in the comparative quarter,partially offset by an increase in the DTC gross margin. Excluding gross profit from the sale of PPE and $4.3m of net overheadcosts resulting from the temporary closure of our manufacturing facilities, gross margin was 55.8%, 70 bps above thecomparative period, reflecting a higher proportion of DTC gross profit than wholesale gross profit in the current period.


2020September 29,

2019

CAD $ millionsGross profit

(loss) Gross marginGross profit

(loss) Gross margin $ Change % ChangeDTC 44.1 77.9 % 82.1 75.3 % (38.0) (46.3)%Wholesale 57.9 45.5 % 118.7 46.8 % (60.8) (51.2)%Other (3.0) (8.1)% 0.5 20.8 % (3.5) (700.0)%Total gross profit 99.0 44.8 % 201.3 55.1 % (102.3) (50.8)%

DTC

Gross profit in our DTC segment was $44.1m for the two quarters ended September 27, 2020 compared to $82.1m for the twoquarters ended September 29, 2019. The decrease in DTC

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(1)


gross profit was driven by the decline in segment revenue as a result of COVID-19. The increase in gross margin wasattributable to a $1.7m (+330 bps) duty recovery related to 2019 shipments to Asia and $0.8m (+110 bps) of government payrollsubsidies. This was partially offset by $0.3m of (-180 bps) of higher costs per unit as production levels were limited and alsoimpacted by COVID-19 safety protocols at our manufacturing facilities.

Wholesale

Gross profit in our Wholesale segment was $57.9m for the two quarters ended September 27, 2020 compared to $118.7m forthe two quarters ended September 29, 2019. The decrease in gross profit was driven by the decline in segment revenue as aresult of COVID-19. The decrease in gross margin was attributable to $3.4m (-390 bps) of higher costs per unit as productionlevels were limited and also impacted by COVID-19 safety protocols at our manufacturing facilities, as well as $3.2m (-240 bps)resulting from a higher proportion of distributor sales relative to the comparative quarter. This was partially offset by $7.0m (+530bps) of government payroll subsidies.

Other

Gross loss in our Other segment was $(3.0)m for the two quarters ended September 27, 2020 compared to gross profit of $0.5mfor the two quarters ended September 29, 2019. The decrease in gross loss was attributable to $4.3m (-820 bps) of netoverhead costs resulting from the temporary closure of our manufacturing facilities due to COVID-19.

SG&A Expenses

SG&A expenses were $111.0m for the two quarters ended September 27, 2020 compared to $131.0m for the two quartersended September 29, 2019. The decrease of $20.0m or 15.3% was attributable to corporate initiatives to reduce costs acrossthe business in response to COVID-19, supplemented by $11.2m of government payroll subsidies. SG&A expenses in the twoquarters ended September 27, 2020 included $3.0m of product development costs and $1.7m of costs related to the transition oflogistics, warehousing, and freight forwarding to new agencies to enhance our global distribution structure.


2020September 29,

2019

CAD $ millions Reported% of segment

revenue Reported% of segment

revenue $ Change % ChangeDTC 25.4 44.9 % 29.0 26.6 % 3.6 12.4 %Wholesale 18.4 14.5 % 21.9 8.6 % 3.5 16.0 %Other 67.2 80.1 12.9 16.1 %Total SG&A expenses 111.0 50.2 % 131.0 35.9 % 20.0 15.3 %

DTC

SG&A expenses in our DTC segment for the two quarters ended September 27, 2020 were $25.4m compared to $29.0m for thetwo quarters ended September 29, 2019, a decrease of $3.6m, or 12.4%. The decrease was attributable to $2.4m of savingsfrom rent abatements and $2.0m of government payroll subsidies, partially offset by an increased investment in our e-commerceinfrastructure. COVID-19 related temporary store closure and pre-store opening


costs of $1.9m and $1.7m, respectively, were recognized in the first two quarters of fiscal 2021 compared to pre-store openingcosts of $1.3m in the two quarters ended September 29, 2019. SG&A expenses as a percentage of DTC segment revenueincreased to 44.9% as a result of incremental fixed operating costs related to 25 retail stores in the current quarter from 16 retailstores in the comparative quarter and lower revenue. This was partially offset by a decrease in variable costs as retail revenuedeclined as well as the rent abatements and payroll subsidies described previously.

Wholesale

SG&A expenses in our Wholesale segment were $18.4m for the two quarters ended September 27, 2020 compared to $21.9mfor the two quarters ended September 29, 2019. The decrease of $3.5m or 16.0% was attributable to corporate initiatives toreduce costs across the business in response to COVID-19, supplemented by $1.4m of government payroll subsidies.

Other

SG&A expenses in our Other segment, which include unallocated corporate expenses, were $67.2m for the two quarters endedSeptember 27, 2020 compared to $80.1m for the two quarters ended September 29, 2019. The decrease of $12.9m or 16.1%was attributable to cost reduction efforts in response to COVID-19, including a $9.2m reduction in marketing costs which remainin line as a percentage of revenue, as well as $7.8m of government payroll subsidies, partially offset by $3.0m of productdevelopment costs.


Depreciation and amortization was $32.2m for the two quarters ended September 27, 2020 compared to $22.4m for the twoquarters ended September 29, 2019, an increase of $9.8m. Of this increase, $7.2m was driven by the expansion of the retailnetwork and information technology-related expenditures to support growth. Depreciation expense on right-of-use assets of$2.0m and $4.0m was related to pre-store opening costs and COVID-19 temporary store closures, respectively, in the twoquarters ended September 27, 2020 compared to $4.6m of pre-store opening costs in the two quarters ended September 29,2019.


2020September 29,

2019CAD $ millions Reported Reported $ Change % ChangeDTC 23.8 16.6 (7.2) (43.4)%Wholesale 1.8 1.4 (0.4) (28.6)%Other 6.6 4.4 (2.2) (50.0)%Total depreciation and amortization 32.2 22.4 (9.8) (43.8)%


Operating (Loss) Income and Margin

Operating loss and operating margin were $(44.2)m and (20.0)% for the two quarters ended September 27, 2020 compared tooperating income and operating margin of $47.9m and 13.1% for the two quarters ended September 29, 2019. Operating lossand operating margin decreased as a result of reduced revenue due to COVID-19 described previously. Operating loss for thetwo quarters ended September 27, 2020 included $4.3m of net overhead costs due to the temporary closure of ourmanufacturing facilities and $5.8m of net temporary store closure costs, resulting from the impact of COVID-19.


2020September 29,

2019

CAD $ millionsOperating


marginOperating


margin $ Change % ChangeDTC (5.1) (9.0) % 36.5 33.5 % (41.6) (114.0)%Wholesale 37.7 29.6 % 95.4 37.6 % (57.7) (60.5)%Other (76.8) (84.0) 7.2 8.6 %Total operating (loss)income (44.2) (20.0) % 47.9 13.1 % (92.1) (192.3)%

DTC

DTC segment operating loss was $(5.1)m for the two quarters ended September 27, 2020 compared to operating income of$36.5m for the two quarters ended September 29, 2019. The decrease of $41.6m in operating loss was attributable to COVID-19temporary store closures resulting in lower revenue, partially offset by $2.8m of government payroll subsidies and $2.4m ofsavings from rent abatements. COVID-19 related temporary store closure costs and pre-store opening costs of $5.8m and$3.7m, respectively, were recognized in the first two quarters of fiscal 2021 compared to pre-store opening costs of $5.9m in thefirst two quarters of fiscal 2020. The decline in DTC operating margin reflects fixed cost deleverage as a result of lower revenue.

Wholesale

Wholesale segment operating income was $37.7m for the two quarters ended September 27, 2020 compared to operatingincome of $95.4m for the two quarters ended September 29, 2019. The decrease in operating income was attributable to thedecline in revenue, partially offset by cost reduction efforts across the business, supplemented by $8.4m of government payrollsubsidies. The decline in operating margin reflects fixed cost deleverage as a result of lower revenue.

Other

Other segment operating loss was $(76.8)m for the two quarters ended September 27, 2020 compared to $(84.0)m for the twoquarters ended September 29, 2019. The decrease in operating loss was attributable to cost reduction efforts in response toCOVID-19, as well as $7.8m of government payroll subsidies recognized in SG&A expenses. This was partially offset by $3.0mof product development costs and $4.3m of net overhead costs resulting from the temporary closure of our manufacturingfacilities due to COVID-19.


Net Interest, Finance and Other Costs

Net interest, finance and other costs were $12.7m for the two quarters ended September 27, 2020 compared to $18.1m for thetwo quarters ended September 29, 2019. The decrease was attributable to the acceleration of unamortized costs in connectionwith the refinancing of the Term Loan Facility of $7.0m in the comparative period, offset in part by corporate restructuring costsof $1.7m in the two quarters ended September 27, 2020. Excluding the impact of interest on lease liabilities of $4.7m for thesecond quarter ended September 27, 2020 and $4.2m for the second quarter ended September 29, 2019, interest chargesdecreased by $0.6m as a result of a lower average interest rate on higher borrowings from the comparative period.

Income Taxes

Income tax recovery was $17.2m for the two quarters ended September 27, 2020 compared to an income tax recovery of $1.4mfor the two quarters ended September 29, 2019. For the two quarters ended September 27, 2020, the effective and statutory taxrates were (30.2)% and 25.5%, respectively, compared to (4.7)% and 25.4% for the two quarters ended September 29, 2019,respectively. Given our global operations, the effective tax rate is largely impacted by our profit or loss in taxable jurisdictionsrelative to the applicable tax rates.

Net (Loss) Income

Net loss for the two quarters ended September 27, 2020 was $(39.7)m compared to net income of $31.2m for the two quartersended September 29, 2019, driven by the factors described above.


Quarterly Financial Information

Fiscal 2021 Fiscal 2020 Fiscal 2019

CAD $ millions (except pershare data) Second

QuarterFirst

QuarterFourthQuarter

ThirdQuarter

SecondQuarter First Quarter

FourthQuarter

ThirdQuarter

RevenueDTC 46.2 10.4 114.2 301.8 74.2 34.8 122.4 235.3 Wholesale 118.5 8.7 25.0 145.3 218.1 35.6 33.0 161.4 Other 30.1 7.0 1.7 5.0 1.7 0.7 0.8 2.6

Total 194.8 26.1 140.9 452.1 294.0 71.1 156.2 399.3 % of fiscal year revenue — % — % 14.7 % 47.2 % 30.7 % 7.4 % 18.8 % 48.1 %Net income (loss) 10.4 (50.1) 2.5 118.0 60.6 (29.4) 9.0 103.4 Earnings (loss) per share

Basic $ 0.09 $ (0.46) $ 0.02 $ 1.08 $ 0.55 $ (0.27) $ 0.08 $ 0.94 Diluted $ 0.09 $ (0.46) $ 0.02 $ 1.07 $ 0.55 $ (0.27) $ 0.08 $ 0.93

Adjusted EBIT 15.7 (46.5) (9.7) 163.8 79.2 (25.9) 13.0 144.7 Adjusted net income (loss) perdiluted share $ 0.10 $ (0.35) $ (0.12) $ 1.08 $ 0.57 $ (0.21) $ 0.09 $ 0.96


Revenue in our wholesale segment is highest in our second and third quarters as we fulfill wholesale customer orders in time forthe Fall and Winter retail seasons, and, in our DTC segment, in the third and fourth quarters. Our net income is typically negativein the first quarter and reduced in the fourth quarter as we invest ahead of our peak season.

Revenue

Over the last eight quarters, revenue has been impacted by the following:

• the global COVID-19 pandemic beginning in the fourth quarter of fiscal 2020;

• timing of store openings;

• launch and expansion of international e-commerce sites;

• customer demand and increased manufacturing flexibility through a shift to in-house production, which has an impacton the timing of wholesale order shipments;

• timing of end-consumer purchasing in the DTC segment and the availability of new products;

• successful execution of global pricing strategy;

• shift in mix of revenue from wholesale to DTC, which has impacted the seasonality of our financial performance;

• shift in geographic mix of sales to increase sales outside of Canada;

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• fluctuation of foreign currencies relative to the Canadian dollar;

• acquisition of Baffin on November 1, 2018;

• political disruptions in Hong Kong beginning in June 2019;

• protests in many North American cities beginning in the first quarter of fiscal 2021; and

• PPE production beginning in the first quarter of fiscal 2021.

Net Income (Loss)

Over the last eight quarters, net income (loss) has been affected by the following factors:

• impact of the items affecting revenue, as discussed above;

• costs incurred and relief received from government programs as a result of the global COVID-19 pandemic beginningin the fourth quarter of fiscal 2020;

• increase and timing of our investment in brand, marketing, and administrative support as well as increasedinvestment in property, plant, and equipment and intangible assets to support growth initiatives;

• increase in fixed SG&A costs associated with our business, particularly the headcount growth and premises costsassociated with our expanding DTC channel, resulting in negative and reduced net income in our seasonally low-revenue first and fourth quarters, respectively;

• impact of foreign exchange;

• fluctuations in average cost of borrowings to address growing net working capital requirements and higher seasonalborrowings in the first and second quarters of each fiscal year to address the seasonal nature of revenue;

• pre-store opening costs incurred, timing of leases signed, and opening of stores;

• the nature and timing of transaction costs in connection with secondary offerings of shares, the Baffin acquisition, andamendments to long-term debt agreements; and

• the proportion of taxable income in non-Canadian jurisdictions.

NON-IFRS FINANCIAL MEASURESThe Company uses certain non-IFRS financial measures in this document and other documents, including EBIT, adjusted EBIT,adjusted EBIT margin, EBITDAR, adjusted EBITDAR, adjusted net (loss) income, adjusted net (loss) income per basic anddiluted share, constant currency revenue, net debt, net debt leverage, net working capital, net working capital turnover, and freeoperating cash flow. These financial measures are employed by the Company to measure its operating and economicperformance and to assist in business decision-making, as well as providing key performance information to seniormanagement. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certaininvestors and analysts use this information to evaluate the Company’s operating and financial performance. These financialmeasures are not defined under IFRS nor do they replace or supersede any standardized measure under IFRS. Othercompanies in our industry may calculate these measures differently than we do, limiting their usefulness as comparativemeasures.



CAD $ millions (except per share data) September 27, 2020

September 29, 2019

September 27, 2020

September 29, 2019

EBIT 15.1 75.4 (44.2) 47.9 Adjusted EBIT 15.7 79.2 (30.8) 53.3 Adjusted EBIT margin 8.1 % 26.9 % (13.9)% 14.6 %EBITDAR 33.6 89.5 (6.9) 75.3 Adjusted EBITDAR 32.6 91.0 0.5 76.1 Adjusted net income (loss) 11.5 63.6 (26.9) 40.8 Adjusted net income (loss) per basic share $ 0.10 $ 0.58 $ (0.24) $ 0.37 Adjusted net income (loss) per diluted share $ 0.10 $ 0.57 $ (0.24) $ 0.37 Free operating cash flow (26.3) (25.9) (109.5) (216.4)


2020September 29,

2019March 29,

2020Net debt (498.6) (537.9) (355.5)Net working capital 385.2 400.8 327.1

EBIT, adjusted EBIT, adjusted EBIT margin, EBITDAR, adjusted EBITDAR, adjusted net (loss) income, and adjusted net (loss)income per basic and diluted share

These non-IFRS measures exclude the impact of certain non-cash items and certain other adjustments related to events that arenon-recurring or unusual in nature, including the COVID-19 pandemic, that we believe are not reflective of our ongoingoperations and that make comparisons of underlying financial performance between periods difficult. We use, and believe thatcertain investors and analysts use, this information to evaluate our core financial and operating performance for businessplanning purposes, as well as to analyze how our business operates in, or responds to, swings in economic cycles or to otherevents that impact the apparel industry.

For the two quarters ended September 27, 2020, we believe that identifying certain costs directly resulting from the impact of theCOVID-19 pandemic and excluding these amounts from our calculation of the non-IFRS measures described above helpsmanagement and investors assess the impact of COVID-19 on our business as well as our general economic performanceduring the period. During the two quarters ended September 27, 2020, these primarily comprised overhead costs recognizedduring the temporary closure of our manufacturing facilities and temporary store closure costs including depreciation and interestexpenses. These were partially offset by rent concessions and government payroll subsidies recognized during the period.

Constant currency revenue

Constant currency revenue is calculated by translating the prior year reported amounts into comparable amounts using a singleforeign exchange rate for each currency calculated based on the current period exchange rates. We use, and believe thatcertain investors and analysts use, this information to assess how our business and geographic segments performed


excluding the effects of foreign currency exchange rate fluctuations. See the Revenue section of the “Results of Operations” fora reconciliation of reported revenue and revenue on a constant currency basis.

Net debt and net debt leverage

We define net debt as total indebtedness, net of cash, and net debt leverage as the ratio of net debt to adjusted EBITDAR,measured on a trailing 52 or 53-week period. We use, and believe that certain investors and analysts use, these non-IFRSfinancial measures to determine the Company’s financial leverage and ability to meet its debt obligations. See “FinancialCondition, Liquidity and Capital Resources - Indebtedness” below for a table providing the calculation of net debt and discussionof net debt leverage.

Net working capital and net working capital turnover

We define net working capital as current assets, net of cash, minus current liabilities, excluding the Short-term Borrowings andcurrent portion of lease liabilities. Net working capital turnover is the ratio of average net working capital to revenue, bothmeasured on a trailing 52 or 53-week period. We use, and believe that certain investors and analysts use, this information toassess the Company’s liquidity and management of net working capital resources. See “Financial Condition, Liquidity andCapital Resources” below for a table providing the calculation of net working capital.

Free operating cash flow

We define free operating cash flow as net cash flows from (used in) operating activities plus net cash flows from (used in)investing activities, minus principal payments on lease liabilities. We use, and believe that certain investors and analysts use,this information to assess the Company’s financial leverage and cash available for repayment of borrowings and other financingactivities and as an indicator of operational financial performance. See “Cash Flows” below for a table providing the freeoperating cash flow balance for the quarter.


The tables below reconcile net income (loss) to EBIT, adjusted EBIT, EBITDAR, adjusted EBITDAR, and adjusted net income(loss) for the periods indicated. Adjusted EBIT margin is equal to adjusted EBIT for the period presented as a percentage ofrevenue for the same period.


CAD $ millions September 27, 2020

September 29, 2019

September 27, 2020

September 29, 2019

Net income (loss) 10.4 60.6 (39.7) 31.2 Add (deduct) the impact of:Income tax (recovery) expense (1.3) 8.9 (17.2) (1.4)Net interest, finance and other costs 6.0 5.9 12.7 18.1 EBIT 15.1 75.4 (44.2) 47.9 Costs of the Baffin acquisition (a) 0.5 0.9 0.9 1.4 Unrealized foreign exchange gain on Term LoanFacility (b) (0.9) (0.9) (1.0) (2.4)Transition of logistics agencies (c) 0.7 — 2.2 — Net temporary store closure costs (d) 0.3 — 5.8 — Net excess overhead costs from temporaryclosure of manufacturing facilities (d) — — 4.3 — Pre-store opening costs (e) 2.8 3.6 3.7 5.9 Non-cash provision release (f) (3.0) — (3.0) — Other 0.2 0.2 0.5 0.5 Total adjustments 0.6 3.8 13.4 5.4 Adjusted EBIT 15.7 79.2 (30.8) 53.3 Adjusted EBIT margin 8.1 % 26.9 % (13.9)% 14.6 %

Add the impact of:Depreciation and amortization 18.5 14.1 37.3 27.4 EBITDAR 33.6 89.5 (6.9) 75.3 Adjusted EBITDAR 32.6 91.0 0.5 76.1

Depreciation and amortization includes depreciation on right-of-use assets under IFRS 16, Leases.

EBITDAR is defined as earnings before interest, taxes, depreciation and amortization, and rent expense, and includesvariable rent.

Adjusted EBITDAR is calculated as EBITDAR, adjusted for items (a) to (f) but excluding $0.2m and $4.0m of net temporarystore closure costs, and $1.4m and $2.0m of pre-store opening costs in (e), for the second and two quarters endedSeptember 27, 2020, respectively (pre-store opening costs for the second and two quarters ended September 29, 2019 -$2.3m and $4.6m, respectively).

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September 29, 2019

September 27, 2020

September 29, 2019

Net income (loss) 10.4 60.6 (39.7) 31.2 Add (deduct) the impact of:Costs of the Baffin acquisition (a) 0.5 0.9 0.9 1.4 Unrealized foreign exchange gain on Term LoanFacility (b) (0.9) (0.9) (1.0) (2.4)Transition of logistics agencies (c) 0.7 — 2.2 — Net temporary store closure costs (d) (g) 0.4 — 7.1 — Net excess overhead costs from temporary closureof manufacturing facilities (d) — — 4.3 — Pre-store opening costs (h) 3.1 4.0 4.2 6.8 Non-cash provision release (f) (3.0) — (3.0) — Acceleration of unamortized costs on term loanrefinancing (i) — — — 7.0 Restructuring expense (d) 0.1 — 1.7 — Other 0.2 0.2 0.5 0.5 Total adjustments 1.1 4.2 16.9 13.3 Tax effect of adjustments — (1.2) (4.1) (3.7)Adjusted net income (loss) 11.5 63.6 (26.9) 40.8

(a) Costs in connection with the Baffin acquisition and the impact of gross margin that would otherwise have been recognized oninventory recorded at net realizable value less costs to sell.

(b) Unrealized gains and losses on the translation of the Term Loan Facility from USD to CAD, net of the effect of derivativetransactions entered into to hedge a portion of the exposure to foreign currency exchange risk.

(c) Costs incurred for the transition of logistics, warehousing, and freight forwarding agencies to enhance our global distributionstructure.

(d) Total government payroll subsidies globally of $12.0m and $20.7m were recognized in the second and two quarters endedSeptember 27, 2020, respectively. These subsidies were recorded as a reduction to the associated wage costs which theCompany incurred; as a result payroll subsidies were recorded as a reduction to excess overhead costs from temporaryclosure of manufacturing facilities ($7.8m and $9.1m), temporary store closure costs ($0.5m and $1.4m), and restructuringexpense ($0.1m and $0.4m), for the second and two quarters ended September 27, 2020, respectively. The benefit of$11.4m and $17.6m of wage subsidies therefore remained in adjusted EBIT as a reduction to the associated wage costs forthe second and two quarters ended September 27, 2020, respectively.

(e) Costs incurred during pre-opening periods for new retail stores, including depreciation on right-of-use assets.

(f) Release of a non-cash sales contract provision as a result of the expiration of the statute of limitations in the respectivejurisdiction in the second and two quarters ended September 27, 2020.


(g) Includes $0.1m and $1.3m of interest expense on lease liabilities for temporary store closures for the second and twoquarters ended September 27, 2020, respectively.

(h) Pre-store opening costs incurred in (e) above plus $0.3m and $0.5m of interest expense on lease liabilities for new retailstores during pre-opening periods for the second and two quarters ended September 27, 2020 (second and two quartersended September 29, 2019 - $0.4m and $0.9m, respectively).

(i) The non-cash unamortized costs accelerated in connection with the amendments to the Term Loan Facility on May 10, 2019.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCESFinancial ConditionThe following table represents our net working capital position as at September 27, 2020, September 29, 2019 and March 29,2020.


September 29, 2019 $ Change March 29,

2020 $ ChangeCurrent assets 736.1 598.5 137.6 531.8 204.3 Deduct: Cash (156.3) (34.2) (122.1) (31.7) (124.6)Current assets, net of cash 579.8 564.3 15.5 500.1 79.7

Current liabilities 249.1 213.9 35.2 208.9 40.2 Deduct the impact of:Short-term Borrowings (11.0) (17.8) 6.8 — (11.0)Current portion of lease liabilities (43.5) (32.6) (10.9) (35.9) (7.6)Current liabilities, net of Short-termBorrowings and lease liabilities 194.6 163.5 31.1 173.0 21.6

Net working capital 385.2 400.8 (15.6) 327.1 58.1

See “Non-IFRS Financial Measures” for a description of this measure.

As at September 27, 2020, we had $385.2m of net working capital compared to $400.8m of net working capital as atSeptember 29, 2019. The $15.6m decrease was driven by a $33.4m decrease in trade receivables, a $18.7m increase inaccounts payable and accrued liabilities due to the extension of payment terms in response to COVID-19, a $8.6m increase inprovisions, and a $8.4m decrease in other current assets. The decrease in working capital was offset by higher inventory levelsof $52.0m. The increase in inventories was attributable to lower sales relative to the comparative quarter. Net working capitalturnover was 41.4% in the quarter ended September 27, 2020.

As at September 27, 2020, we had $385.2m of net working capital compared to $327.1m of net working capital as at March 29,2020.

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Cash Flows

The following table summarizes the Company’s consolidated statement of cash flows for the second and two quarters endedSeptember 27, 2020 compared to the second and two quarters ended September 29, 2019.



2020September 29,

2019 $ ChangeSeptember 27,

2020September 29,

2019 $ ChangeTotal cash (used in) providedby:

Operating activities (13.5) (0.7) (12.8) (83.3) (181.0) 97.7 Investing activities (4.0) (20.6) 16.6 (8.8) (25.8) 17.0 Financing activities 14.1 30.4 (16.3) 217.6 151.9 65.7 Effects of foreign currencyexchange rate changes oncash (0.4) 0.1 (0.5) (0.9) 0.5 (1.4)(Decrease) increase in cash (3.8) 9.2 (13.0) 124.6 (54.4) 179.0

Cash, beginning of period 160.1 25.0 135.1 31.7 88.6 (56.9)Cash, end of period 156.3 34.2 122.1 156.3 34.2 122.1

Free operating cash flow (26.3) (25.9) (0.4) (109.5) (216.4) 106.9


Cash Requirements

Our primary need for liquidity is to fund net working capital, capital expenditures, debt services, and general corporaterequirements of our business. Our primary source of liquidity to meet our cash requirements is cash generated from operatingactivities over our annual operating cycle. We also utilize our Short-term Borrowings, the Revolving Facility, and the Tradeaccounts receivable factoring program to provide short-term liquidity and to have funds available for net working capital. Ourability to fund our operations, invest in planned capital expenditures, meet debt obligations, and repay or refinance indebtednessdepends on our future operating performance and cash flows, which are subject, but not limited to, prevailing economic,financial, and business conditions, some of which are beyond our control. Cash generated from operating activities issignificantly impacted by the seasonality of our business. Historically, cash flows from operating activities have been highest inthe third and fourth fiscal quarters of the fiscal year due to revenue from the DTC channel and the collection of receivables fromwholesale revenue earlier in the year.

Cash flows used in operating activities

Cash used in operating activities was $13.5m for the second quarter ended September 27, 2020 compared to $0.7m for thesecond quarter ended September 29, 2019. The increase in cash used in operating activities of $12.8m was driven by lower netincome for the second quarter ended September 27, 2020. This was partially offset by a favourable change in working capitaldriven by a decrease in trade receivables as a result in the timing and reduction of wholesale

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shipments to partner operations and a decrease in funds to produce inventories due to the limited production of outerwear in thesecond quarter of fiscal 2021. The changes in trade receivables and inventories were partially offset by an increase in accountspayable and accrued liabilities due to the extension of payment terms in response to COVID-19.

Cash used in operating activities was $83.3m for the two quarters ended September 27, 2020 compared to $181.0m for the twoquarters ended September 29, 2019. The decrease in cash used in operating activities of $97.7m was driven by favourablechanges in working capital and lower income taxes paid. The change in working capital resulted from a decrease in funds usedto produce inventories due to the COVID-19 related temporary closures of our manufacturing facilities and limited production inthe first and second quarters of fiscal 2021, respectively, as well as a decrease in trade receivables due to the timing andreduction in wholesale shipments to partner operations. This was partially offset by a net loss for the two quarters endedSeptember 27, 2020.

Cash flows used in investing activities

Cash used in investing activities was $4.0m for the second quarter ended September 27, 2020 compared to $20.6m for thesecond quarter ended September 29, 2019. The decrease in cash used in investing activities of $16.6m was due to theextension of payment terms for capital expenditures on retail store construction and lower investments in information technologyfor the second quarter ended September 27, 2020.

Cash used in investing activities was $8.8m for the two quarters ended September 27, 2020 compared to $25.8m for the twoquarters ended September 29, 2019. The decrease in cash used in investing activities of $17.0m was due to the extension ofpayment terms as described above for the two quarters ended September 27, 2020.

Cash flows from financing activities

Cash generated from financing activities was $14.1m for the second quarter ended September 27, 2020 compared to $30.4m forthe second quarter ended September 29, 2019. The decrease in cash generated from financing activities of $16.3m was drivenby $11.6m of lower borrowings and an increase of $4.2m in principal paid on lease liabilities in the quarter.

Cash generated from financing activities was $217.6m for the two quarters ended September 27, 2020 compared to $151.9m forthe two quarters ended September 29, 2019. The increase in cash generated from financing activities of $65.7m was driven by$38.7m of payments for the purchase and cancellation of subordinate voting shares in fiscal 2020 and $38.2m of higherborrowings, partially offset by an increase of $7.8m in principal paid on lease liabilities and $4.6m on the settlement of TermLoan Facility derivative contracts.


Free operating cash flow

The table below reconciles the cash flows used in operating and investing activities, and principal payments on lease liabilities tofree operating cash flow.



September 29, 2019 $ Change September 27,

2020September 29,

2019 $ ChangeTotal cash used in:Operating activities (13.5) (0.7) (12.8) (83.3) (181.0) 97.7 Investing activities (4.0) (20.6) 16.6 (8.8) (25.8) 17.0

Deduct the impact of:Principal payments onlease liabilities (8.8) (4.6) (4.2) (17.4) (9.6) (7.8)Free operating cashflow (26.3) (25.9) (0.4) (109.5) (216.4) 106.9


Free operating cash flow decreased to $(26.3)m for the second quarter ended September 27, 2020 from $(25.9)m for thesecond quarter ended September 29, 2019 due to an increase in cash flows used in operating activities and higher principal paidon lease liabilities, partially offset by improved cash flows from investing activities as described above.

Free operating cash flow increased to $(109.5)m for the two quarters ended September 27, 2020 from $(216.4)m for the twoquarters ended September 29, 2019 due to improved cash flows from operating and investing activities as described above,partially offset by higher principal paid on lease liabilities.

Indebtedness

The following table presents our net debt as at September 27, 2020, September 29, 2019, and March 29, 2020.


September 29, 2019 $ Change March 29,

2020 $ ChangeCash 156.3 34.2 122.1 31.7 124.6 Short-term Borrowings (11.0) (17.8) 6.8 — (11.0)Revolving Facility (224.9) (179.4) (45.5) — (224.9)Term Loan (152.3) (150.7) (1.6) (159.3) 7.0 Lease liabilities (266.7) (224.2) (42.5) (227.9) (38.8)Net debt (498.6) (537.9) 39.3 (355.5) (143.1)

See “Non-IFRS Financial Measures” for a description of these measures.

As at September 27, 2020, net debt was $498.6m compared to $537.9m as at September 29, 2019. The decrease of $39.3mwas driven by an increase in cash of $122.1m, offset by higher

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borrowings of $45.5m under the Revolving Facility and an increase of $42.5m in lease liabilities. Net debt leverage as atSeptember 27, 2020 was 2.1 times adjusted EBITDAR.

Net debt as at September 27, 2020 was $498.6m compared to $355.5m as at March 29, 2020. The increase in net debt of$143.1m was driven by the increase in borrowings of $224.9m under the Revolving Facility and an increase of $38.8m in leaseliabilities, offset by a $124.6m increase in cash.

Short-term Borrowings

On July 18, 2019, a subsidiary of the Company in Greater China entered into an uncommitted loan facility in the amount of RMB160.0m. The facility includes a non-financial bank guarantee facility in the amount of RMB 10.0m. The term of each draw on theloan will be one, three or six months or such other period as agreed upon and shall not exceed twelve months (including anyextension or rollover). The interest rate is equal to 105% of the applicable People's Bank of China Benchmark Lending Rate andpayable at one, three or six months, depending on the term of each draw. The facility is guaranteed by the Company andproceeds drawn on the facility will be used to support working capital requirements. As at September 27, 2020, the Companyhad $11.0m owing on the facility.

Amendments to long-term debt agreements

On May 26, 2020, the Company entered into a further amendment to the Revolving Facility to increase its ability to borrowagainst the borrowing base by up to $50.0m. The amended Revolving Facility consists of the existing revolving facility with areduced commitment in the amount of $417.5m with a seasonal increase of up to $467.5m during the peak season (June 1 -November 30), and the FILO Revolving Facility in the amount of $50.0m. Borrowings under the existing revolving facility weretransferred to the FILO Revolving Facility on the transaction date and future amounts are drawn in priority on the FILO RevolvingFacility. Amounts drawn on the FILO Revolving Facility are subject to an interest rate charge that is 2.00% higher than theexisting revolving facility. The FILO Revolving Facility matures on May 25, 2021 and upon maturity, the credit commitments onthe existing revolving facility will be restored, resulting in no net change in aggregate commitments under the Revolving Facility.Transaction costs are amortized over the term of the facility.

Revolving Facility

The Company has an agreement with a syndicate of lenders for a senior secured asset-based Revolving Facility consisting of (i)a revolving credit facility in the amount of $417.5m with an increase in commitments to $467.5m during the peak season (June 1- November 30) (February 24, 2020 to May 25, 2020 - $467.5m with an increase to $517.5m during the peak season, May 10,2019 to February 23, 2020 - $300.0m with an increase to $350.0m during the peak season), and (ii) the FILO Revolving Facilityin the amount of $50.0m. The revolving credit commitment also includes a letter of credit commitment in the amount of $25.0m,with a $5.0m sub-commitment for letters of credit issued in a currency other than Canadian dollars, U.S. dollars, euros or Britishpounds sterling, and a swingline commitment for $25.0m. Amounts owing under the Revolving Facility can be drawn in Canadiandollars, U.S. dollars, euros, British pounds sterling or other currencies. The Revolving Facility matures on June 3, 2024 and theFILO Revolving Facility matures on May 25, 2021. Amounts owing under the Revolving Facility may be borrowed, repaid and re-borrowed for general corporate purposes.

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Loans under the Revolving Facility, at our option, may be maintained from time to time as (a) Prime Rate Loans, which bearinterest at a rate per annum equal to the Applicable Margin for Prime Rate Loans plus the Prime Rate, (b) Banker’s Acceptancesfunded on a discounted proceeds basis given the published discount rate plus a rate per annum equal to the Applicable Marginfor stamping fees, (c) ABR Loans, which bear interest at a rate per annum equal to the Applicable Margin for ABR Loans plusthe ABR, (d) European Base Rate Loans, which bear interest at a rate per annum equal to the Applicable Margin for EuropeanBase Rate Loans plus the European Base Rate, (e) LIBOR Loans, which bear interest at a rate per annum equal to theApplicable Margin for LIBOR Loans plus the LIBOR Rate or (f) EURIBOR Loans, which bear interest at a rate per annum equalto the Applicable Margin for EURIBOR Loans plus the applicable EURIBOR.

A commitment fee will be charged on the average daily unused portion of the Revolving Facility of 0.25% per annum if averageutilization under the Revolving Facility is greater than 50% or 0.375% if average utilization under the Revolving Facility is lessthan 50%. A letter of credit fee, with respect to standby letters of credit, will accrue on the aggregate face amount of outstandingletters of credit under the Revolving Facility equal to the Applicable Margin for LIBOR Loans, and, with respect to trade orcommercial letters of credit, 50% of the then Applicable Margin on LIBOR Loans. A fronting fee will be charged on the aggregateface amount of outstanding letters of credit equal to 0.125% per annum. In addition, we pay the administrative agent under theRevolving Facility a monitoring fee of one thousand dollars per month.

The Revolving Facility contains financial and non-financial covenants which could impact the Company’s ability to draw funds.As at and during the two quarters ended September 27, 2020, the Company was in compliance with all covenants.

As at September 27, 2020, the Company had $222.5m outstanding under the Revolving Facility, net of deferred transactioncosts of $2.4m (September 29, 2019 - $177.7m, net of deferred transaction costs of $1.7m). As at March 29, 2020, the Companyhad repaid all amounts owing under the Revolving Facility and related deferred transaction costs in the amounts of $1.7m wereincluded in other long-term liabilities. The Company has unused borrowing capacity available under the Revolving Facility of$101.8m as at September 27, 2020 (September 29, 2019 - $164.5m, March 29, 2020 - $226.6m).

As at September 27, 2020, the Company had letters of credit outstanding under the Revolving Facility of $5.7m (September 29,2019 - $6.1m, March 29, 2020 - $5.7m).

Term Loan Facility

The Company has a senior secured loan agreement with a syndicate of lenders that is secured on a split collateral basisalongside the Revolving Facility, with an aggregate principal amount owing of US$113.8m with Credit Suisse AG, CaymanIslands Branch, as administrative agent and collateral agent, and certain financial institutions as lenders. The Term Loan Facilitybears interest at a rate of LIBOR plus an applicable margin of 3.50%, payable monthly in arrears. The Term Loan Facilitymatures on December 2, 2024. Amounts owing under the Term Loan Facility may be repaid at any time without premium orpenalty, but once repaid may not be reborrowed. All obligations under the Term Loan Facility are unconditionally guaranteed bythe Company and, subject to certain exceptions, our U.S., U.K., and Canadian subsidiaries. The Term Loan Facility provides forcustomary events of default.


The Company has pledged substantially all of its assets as collateral for the Term Loan Facility. The Term Loan Facility containsfinancial and non-financial covenants. As at and during the two quarters ended September 27, 2020, the Company was incompliance with all covenants.

The Company determined that the amendments to the Term Loan Facility in the first quarter of fiscal 2020 were equivalent to aprepayment at no cost of the original Term Loan Facility and the origination of the amended Term Loan Facility at marketconditions. The Company accounted for the amendments to the Term Loan Facility as a debt extinguishment and re-borrowingof the loan amount. The original Term Loan Facility in the amount of $151.7m (US$113.8m) and related unamortized costs of$7.0m were derecognized. The acceleration of unamortized costs was included in net interest, finance and other costs in thestatement of income (loss).

As the Term Loan Facility is denominated in U.S. dollars, the Company remeasures the outstanding balance in Canadian dollarsat each balance sheet date. As at September 27, 2020, we had $152.3m aggregate principal amount outstanding under theTerm Loan Facility (September 29, 2019 - $150.7m, March 29, 2020 - $159.3m). The difference in amounts in these periods isthe result of the change in the CAD:USD exchange rate.

Lease Liabilities

The Company had $266.7m (September 29, 2019 - $224.2m, March 29, 2020 - $227.9m) of lease liabilities as at September 27,2020, of which $43.5m (September 29, 2019 - $32.6m, March 29, 2020 - $35.9m) are due within one year. Lease liabilitiesrepresent the discounted amount of future payments under leases for right-of-use assets.

Capital Management

The Company manages its capital, which consists of equity (subordinate voting shares and multiple voting shares), Short-termBorrowings, and long-term debt (the Revolving Facility and the Term Loan Facility), with the objectives of safeguarding sufficientnet working capital over the annual operating cycle and providing sufficient financial resources to grow operations to meetlong-term consumer demand. Management targets a ratio of trailing 52 or 53-week period adjusted EBITDAR to net debt ,reflecting the seasonal change in the business as net working capital builds through the second fiscal quarter. The Board ofDirectors of the Company monitors the Company’s capital management on a regular basis. We will continually assess theadequacy 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.

See “Non-IFRS Financial Measures” for a description of these measures.

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Contractual Obligations

The following table summarizes certain of our significant contractual obligations and other obligations as at September 27, 2020:

CAD $ millionsQ3 & Q4

2021 2022 2023 2024 2025 2026 Thereafter Total$ $ $ $ $ $ $ $

Accounts payable and accrued liabilities 163.6 — — — — — — 163.6 Short-term Borrowings 11.0 — — — — — — 11.0 Revolving Facility — — — — 224.9 — — 224.9 Term Loan Facility — — — — 152.3 — — 152.3 Note payable 3.0 — — — — — — 3.0 Interest commitments relating toborrowings 5.5 10.5 10.5 10.5 4.5 — — 41.5 Foreign exchange forward contracts 3.0 — — — 2.5 — — 5.5 Lease obligations 32.1 55.9 53.7 46.9 44.7 33.6 62.6 329.5 Pension obligation — — — — — — 2.6 2.6 Total contractual obligations 218.2 66.4 64.2 57.4 428.9 33.6 65.2 933.9

Interest commitments are calculated based on the loan balance and the interest rate payable on the Short-term Borrowings,Revolving Facility and the Term Loan Facility of 4.26%, 2.21% and 3.66%, respectively, as at September 27, 2020.

As at September 27, 2020, we had additional liabilities which included provisions for warranty, agent termination fees, salesreturns, asset retirement obligations, and deferred income tax liabilities. These long-term liabilities have not been included in thetable above as the timing and amount of future payments are uncertain.

Off-Balance Sheet Arrangements

The Company uses off-balance sheet arrangements including letters of credit and guarantees in connection with certainobligations, including leases. The Company in Europe also entered into an agreement to factor, on a limited recourse basis,certain of its trade accounts receivable up to a limit of €20.0m in exchange for advanced funding equal to 100% of the principalvalue of the invoice. Refer to the “Credit risk” section of this MD&A for additional details on the trade accounts receivablefactoring program. Other than those items disclosed here and elsewhere in this MD&A and our financial statements, we did nothave any material off-balance sheet arrangements or commitments as at September 27, 2020.

Letter of guarantee facility

On April 14, 2020, Canada Goose Inc. entered into a letter of guarantee facility with HSBC Bank Canada in the amount of$10.0m. Letters of guarantee are available for terms of up to twelve months and will be charged a fee equal to 1.2% per annumcalculated against the face amount and over the term of the guarantee. Amounts issued on the facility will be used to financeworking capital requirements through letters of guarantee, standby letters of credit, performance bonds, counter guarantees,counter standby letters of credit, or similar credits. The Company shall immediately reimburse the issuing bank for amountsdrawn on issued letters of

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guarantees. As at September 27, 2020, the Company had $3.9m outstanding in connection with our leases.

Outstanding Share CapitalCanada Goose is a publicly traded company and the subordinate voting shares are listed on the New York Stock Exchange(NYSE: GOOS) and on the Toronto Stock Exchange (TSX: GOOS). As at October 30, 2020, there were 59,142,598 subordinatevoting shares issued and outstanding, and 51,004,076 multiple voting shares issued and outstanding.

As at October 30, 2020, there were 2,811,652 options and 139,665 restricted share units outstanding under the Company’sequity incentive plans, of which 877,999 options were vested as of such date. Each option is exercisable for one subordinatevoting share. We expect that vested restricted share units will be paid at settlement through the issuance of one subordinatevoting share per restricted share unit.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKWe are exposed to certain market risks arising from transactions in the normal course of our business. Such risk is principallyassociated with credit risk, foreign currency exchange risk, and interest rate risk.

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

Credit risk arises from the possibility that certain parties will be unable to discharge their obligations. The Company manages itscredit risk through a combination of third party credit insurance and internal house risk. Credit insurance is provided by a thirdparty for customers and is subject to continuous monitoring of the credit worthiness of the Company's customers. Insurancecovers a specific amount of revenue, which may be less than the Company's total revenue with a specific customer. As atSeptember 27, 2020, accounts receivable totaling approximately $53.0m (September 29, 2019 - $110.4m, March 29, 2020 -$20.1m) were insured. Accounts receivable as at September 27, 2020 included $16.1m of receivables from governmentauthorities related to PPE sales which were not insured.

Credit insurance is subject to continuous review by the insurer and can be reduced or eliminated if, in the view of the insurer, thecustomer's credit worthiness has deteriorated. Upon receiving notification of credit insurance limit modifications, credit insuranceremains in place for 60 days. During the two quarters ended September 27, 2020, the Company experienced significantreductions in the market availability of credit insurance for a number of its customers.

Complementary to the third party insurance, the Company routinely assesses the financial strength of its customers through acombination of third party financial reports, credit monitoring, publicly available information, and direct communication with thosecustomers. The Company establishes payment terms with customers to mitigate credit risk and continues to closely monitor itsaccounts receivable credit risk exposure.

Customer deposits are received in advance from certain customers for seasonal orders to further mitigate credit risk, andapplied to reduce accounts receivable when goods are shipped. As at September 27, 2020, customer deposits of $8.1m(September 29, 2019 - $14.7m, March 29, 2020 - $2.1m) are included in accounts payable and accrued liabilities.


The aging of trade receivables is as follows:

Past dueCAD $ millions Total Current < 30 days 31-60 days > 61 days

$ $ $ $ $Trade accounts receivable 91.5 69.4 15.5 6.1 0.5 Credit card receivables 3.1 3.1 — — — Government grant receivable 10.6 10.6 — — — Other receivables 11.7 11.7 — — — September 27, 2020 116.9 94.8 15.5 6.1 0.5

Trade accounts receivable 139.5 118.1 17.8 2.2 1.4 Credit card receivables 9.0 9.0 — — — Other receivables 1.0 1.0 — — — September 29, 2019 149.5 128.1 17.8 2.2 1.4

Trade accounts receivable 26.9 15.9 5.0 2.5 3.5 Credit card receivables 2.1 2.1 — — — Other receivables 5.1 5.1 — — — March 29, 2020 34.1 23.1 5.0 2.5 3.5

Trade accounts receivable factoring program

On December 23, 2019, a subsidiary of the Company in Europe entered into an agreement to factor, on a limited recourse basis,certain of its trade accounts receivable up to a limit of €20.0m in exchange for advanced funding equal to 100% of the principalvalue of the invoice. Accepted currencies include euros, British pounds sterling, and Swiss francs. The Company is charged afee of the applicable EURIBOR or LIBOR reference rate plus 1.15% per annum, based on the number of days between thepurchase date and the invoice due date, which is lower than the Company’s average borrowing rate under its revolving facility.The program is utilized to provide sufficient liquidity to support its international operating cash needs. Upon transfer of thereceivables, the Company receives cash proceeds and continues to service the receivables on behalf of the third-party financialinstitution. The program meets the derecognition requirements in accordance with IFRS 9, Financial Instruments as theCompany transfers substantially all the risks and rewards of ownership upon the sale of a receivable. These proceeds areclassified as cash flows from operating activities in the statement of cash flows.

For the two quarters ended September 27, 2020, the Company received cash proceeds from the sale of trade accountsreceivable with carrying values of $6.2m which were derecognized from the Company's statement of financial position. Fees ofless than $0.1m were incurred during the two quarters ended September 27, 2020 and included in net interest, finance and othercosts in the statement of income (loss). As at September 27, 2020, the outstanding amount of trade accounts receivablederecognized from the Company’s statement of financial position, but which the Company continues to service, was $5.8m(March 29, 2020 - $2.4m).


Foreign exchange risk

Foreign exchange risk in operating cash flows

Our Interim Financial Statements are expressed in Canadian dollars, but a portion of the Company’s net assets are denominatedin foreign currencies, primarily U.S. dollars, euros, British pounds sterling, Swiss francs, Chinese yuan, and Hong Kong dollarsthrough its foreign operations in the U.S., U.K., France, Switzerland, Hong Kong, and China. Furthermore, as our business inGreater China grows, transactions in Chinese yuan and Hong Kong dollar will increase. Net monetary assets denominated incurrencies other than Canadian dollars that are held in entities with Canadian dollar functional currency are translated intoCanadian dollars at the foreign currency exchange rate in effect at the balance sheet date. As a result, we are exposed toforeign currency translation gains and losses. Revenues and expenses of all foreign operations are translated into Canadiandollars at the foreign currency exchange rates that approximate the rates in effect at the dates when such items are recognized.Appreciating foreign currencies relative to the Canadian dollar will positively impact operating income and net income byincreasing our revenue, while depreciating foreign currencies relative to the Canadian dollar will have the opposite impact.

We are also exposed to fluctuations in the prices of U.S. dollar denominated purchases as a result of changes in U.S. dollarexchange rates. A depreciating Canadian dollar relative to the U.S. dollar will negatively impact operating income and netincome by increasing our costs of raw materials, while an appreciating Canadian dollar relative to the U.S. dollar will have theopposite impact.

The Company has entered into forward foreign exchange contracts to reduce the foreign exchange risk to fluctuations in theU.S. dollar, euro, British pound sterling, Swiss franc, Chinese yuan, Hong Kong dollar, and Swedish krona exchange rates forrevenues and purchases. Certain forward foreign exchange contracts were designated at inception and accounted for as cashflow hedges. The operating hedge program for the fiscal year ending March 28, 2021 was initiated during the fourth quarter ofthe 2019 fiscal year.

In the fourth quarter of fiscal 2020, the Company recognized $1.7m of unrealized losses on foreign exchange hedges deemedineffective as a result of uncertainties in our future cash flows among our foreign operations.

The Company recognized the following unrealized gains in the fair value of derivatives designated as cash flow hedges in othercomprehensive income:


2020September 29,

2019September 27,

2020September 29,

2019CAD $ millions Net gain Tax expense Net gain Tax expense Net gain Tax expense Net gain Tax expense

$ $ $ $ $ $ $ $Forward foreign exchangecontracts designated ascash flow hedges 0.8 (0.1) 0.6 (0.9) 3.1 (0.9) 5.7 (2.0)


For the second and two quarters ended September 27, 2020, there were no amounts reclassified from other comprehensiveincome to SG&A expenses on derivatives designated as cash flow hedges (second and two quarters ended September 29, 2019- $0.6m and $0.6m, respectively).

For the second and two quarters ended September 27, 2020, unrealized gains of $0.6m and $1.2m, respectively (for the secondand two quarters ended September 29, 2019 - unrealized gains of $0.2m and $1.8m, respectively) on forward exchangecontracts that are not treated as hedges were recorded in SG&A expenses in the statement of income (loss).

Foreign currency forward exchange contracts outstanding as at September 27, 2020 related to operating cash flows are:

(in millions) Aggregate Amounts CurrencyForward contract to purchase Canadian dollars US$ 76.6 U.S. dollars

€ 70.4 euros

Forward contract to sell Canadian dollars US$ 36.2 U.S. dollars€ 31.9 euros

Forward contract to purchase euros CHF 1.4 Swiss francsCNY 379.9 Chinese yuan£ 22.9 British pounds sterlingHKD 36.9 Hong Kong dollarsSEK 4.2 Swedish kronor

Forward contract to sell euros CHF 6.5 Swiss francs£ 1.2 British pounds sterling

Foreign exchange risk on borrowings

Amounts available for borrowing under Short-term Borrowings is denominated in Chinese renminbi. Based on our outstandingbalances of $11.0m under Short-term Borrowings as at September 27, 2020, a $0.01 depreciation in value of the Canadiandollar compared to the Chinese renminbi would result in a decrease in our pre-tax income of $0.6m solely as a result of thatexchange rate fluctuation’s effect on the debt.

Amounts available for borrowing under the Term Loan Facility and part of our Revolving Facility are denominated in U.S. dollars.Based on our outstanding balances of $152.3m (US$113.8m) under the Term Loan Facility as at September 27, 2020, a $0.01depreciation in the value of the Canadian dollar compared to the U.S. dollar would result in a decrease in our pre-tax income of$1.1m solely as a result of that exchange rate fluctuation’s effect on the debt. The outstanding balance on the U.S. portion of ourRevolving Facility is $10.8m and a $0.01 depreciation in the value of the Canadian dollar compared to the U.S. dollar wouldresult in a decrease in our pre-tax income of $0.1m solely as a result of that exchange rate fluctuation’s effect on the debt.

The Company hedges a portion of its exposure to foreign currency exchange risk on principal and interest payments related toits U.S. dollar denominated Term Loan Facility.


The Company recognized the following unrealized gains and losses in the fair value of derivatives designed as hedginginstruments in other comprehensive income:


2020September 29,

2019September 27,

2020September 29,

2019

CAD $ millions Net loss Tax recovery Net gain Tax expenseNet gain

(loss)Tax (expense)

recoveryNet gain

(loss) Tax expense$ $ $ $ $ $ $ $

Cross-currency swapdesignated as a cashflow hedge (1.9) 0.3 1.1 (0.2) (4.0) 0.6 (0.2) — Euro-denominatedcross-currency swapdesignated as a netinvestment hedge (0.8) 0.1 1.5 (0.3) 0.8 (0.2) 1.4 (0.3)

The Company reclassified the following gains and losses from other comprehensive income on derivatives designated ashedging instruments to selling, general and administrative expenses:



2020September 29,

2019September 27,

2020September 29,

2019Loss (gain) from othercomprehensive income $ $ $ $Cross-currency swap designated as acash flow hedge 2.1 (1.3) 4.3 (0.1)

For the second and two quarters ended September 27, 2020, unrealized losses of $0.9m and $1.7m, respectively (for thesecond and two quarters ended September 29, 2019 - unrealized gains of $0.8m and $1.0m, respectively) in the fair value of thelong-dated forward exchange contract related to a portion of the term loan balance were recognized in SG&A expenses in thestatement of income (loss).

The Company entered into a cross-currency swap by selling US$70.0m floating rate debt bearing interest at LIBOR plus 3.50%as measured on the trade date, and receiving $93.0m fixed rate debt bearing interest at a rate of 5.02%. This cross-currencyswap was designated at inception and accounted for as a cash flow hedge, and to the extent that the hedge is effective,unrealized gains and losses are included in other comprehensive income until reclassified to the statement of income (loss) asthe hedged interest payments and principal repayments (or periodic remeasurements) impact net income.

Concurrently, the Company entered into a second cross-currency swap by selling the $93.0m fixed rate debt bearing interest ata rate of 5.02% and receiving €61.8m fixed rate debt bearing


interest at a rate of 3.19%. This cross-currency swap was designated and accounted for as a hedge of the net investment in itsEuropean subsidiary. Hedges of net investments are accounted for similarly to cash flow hedges, with unrealized gains andlosses included in other comprehensive income. Amounts included in other comprehensive income are reclassified to netincome in the period when the foreign operation is disposed of or sold.

The Company also entered into a long-dated forward exchange contract by selling $39.6m and receiving US$30.0m asmeasured on the trade date, to fix the foreign exchange risk on term loan borrowings over the revised term to maturity(December 2, 2024). Unrealized gains and losses in the fair value of the forward contract are recognized in SG&A expenses inthe statement of income (loss).

Interest rate riskWe are exposed to interest rate risk primarily related to the effect of interest rate changes on borrowings outstanding under ourShort-term Borrowings, Revolving Facility, and Term Loan Facility. As at September 27, 2020, the Company had $11.0moutstanding on Short-term Borrowings, $224.9m on the Revolving Facility, and $152.3m under the Term Loan Facility. Thesecurrently bear interest rates at 4.26%, 2.21%, and 3.66%, respectively. Based on the weighted average amount of outstandingborrowings on our Short-term Borrowings during the two quarters ended September 27, 2020, a 1.00% increase in the averageinterest rate on our borrowings would have increased interest expense by less than $0.1m (two quarters ended September 29,2019 - less than $0.1m). Correspondingly, a 1.00% increase in the average interest rate would have increased interest expenseon the Revolving Facility and Term Loan Facility by $0.9m and $0.8m, respectively (for the second and two quarters endedSeptember 29, 2019 - $0.6m and $0.8m, respectively). Interest rate risk on the Term Loan Facility is partially mitigated by cross-currency swap hedges. The impact on future interest expense as a result of future changes in interest rates will depend largelyon the gross amount of our borrowings at that time.

RELATED PARTY TRANSACTIONSThe Company enters into transactions from time to time with its principal shareholders and organizations affiliated with membersof the Board of Directors by incurring expenses for business services. During the second and two quarters ended September 27,2020, the Company incurred expenses with related parties of $0.3m and $0.4m, respectively (for the second and two quartersended September 29, 2019 - $0.3m and $0.5m, respectively) from companies related to certain shareholders. Net balancesowing to related parties as at September 27, 2020 were $0.7m (September 29, 2019 - $0.5m, March 29, 2020 - $0.4m).

A lease liability due to the controlling shareholder of the acquired Baffin Inc. business (the “Baffin Vendor”) for leased premiseswas $5.0m as at September 27, 2020 (September 29, 2019 - $5.7m, March 29, 2020 - $5.3m). During the second and twoquarters ended September 27, 2020, the Company paid principal and interest on the lease liability, net of rent concessions, andother operating costs to entities affiliated with the Baffin Vendor totaling $0.3m and $0.6m, respectively (for the second and twoquarters ended September 29, 2019 - $0.4m and $0.7m, respectively). No amounts were owing to Baffin entities as atSeptember 27, 2020, September 29, 2019, and March 29, 2020. Furthermore, $3.0m was paid to the Baffin Vendor onNovember 1, 2020 and charged to expense over two years.


CRITICAL ACCOUNTING POLICIES AND ESTIMATESOur Interim Financial Statements have been prepared in accordance with IFRS as issued by the IASB. The preparation of ourfinancial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities,revenues and expenses. We base our estimates on historical experience and on various other assumptions that we believe arereasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.While our significant accounting policies are more fully described in the notes to our Annual Financial Statements and InterimFinancial Statements, we believe that the following accounting policies and estimates are critical to our business operations andunderstanding our financial results.

The following are the accounting policies subject to judgments and key sources of estimation uncertainty that we believe couldhave the most significant impact on the amounts recognized in the Interim Financial Statements.

Revenue recognition. Revenue comprises DTC, Wholesale, and Other segment revenues. Revenue is measured at the amountof consideration to which the Company expects to be entitled in exchange for the sale of goods in the ordinary course of theCompany’s activities. Revenue is presented net of sales tax, estimated returns, sales allowances, and discounts. The Companyrecognizes revenue when the Company has agreed terms with its customers, the contractual rights and payment terms havebeen identified, the contract has commercial substance, it is probable that consideration will be collected by the Company, andwhen control of the goods is transferred to the customer have been met.

It is the Company’s policy to sell merchandise through the DTC channel with a limited right to return, typically within 30 days.Accumulated experience is used to estimate and provide for such returns.

Inventories. Inventories are carried at the lower of cost and net realizable value which requires us to use estimates related tofluctuations in obsolescence, shrinkage, future retail prices, seasonality and costs necessary to sell the inventory.

We periodically review our inventories and make provisions as necessary to appropriately value obsolete or damaged rawmaterials and finished goods. In addition, as part of inventory valuations, we accrue for inventory shrinkage for lost or stolenitems based on historical trends from actual physical inventory counts.

Leases. We exercise judgment when contracts are entered into that may give rise to a right-of-use asset that would beaccounted for as a lease. Judgment is required in determining the appropriate lease term on a lease by lease basis. Weconsider all facts and circumstances that create an economic incentive to exercise a renewal option or to not exercise atermination option at inception and over the term of the lease, including investments in major leaseholds, operating performance,and changed circumstances. The periods covered by renewal or termination options are only included in the lease term if we arereasonably certain to exercise that option. Changes in the economic environment or changes in the retail industry may impactthe assessment of the lease term.

We determine the present value of future lease payments by estimating the incremental borrowing rate specific to each leasedasset or portfolio of leased assets. We determine the incremental borrowing rate of each leased asset or portfolio of leasedassets by incorporating our creditworthiness, the security, term, and value of the underlying leased asset, and the


economic environment in which the leased asset operates. The incremental borrowing rates are subject to change mainly due tomacroeconomic changes in the environment.

Impairment of non-financial assets (goodwill, intangible assets, right-of- use assets and property, plant and equipment). We arerequired to use judgment in determining the grouping of assets to identify their cash generating units (“CGU”) for the purposes oftesting fixed assets for impairment. Judgment is further required to determine appropriate groupings of CGUs for the level atwhich goodwill and intangible assets are tested for impairment. For the purpose of goodwill impairment testing, CGUs aregrouped at the lowest level at which goodwill is monitored for internal management purposes. For the purpose of intangibleassets’ impairment testing, intangible assets are assessed at the CGU level. In addition, judgment is used to determine whethera triggering event has occurred requiring an impairment test to be completed.

In determining the recoverable amount of a CGU or a group of CGUs, various estimates are employed. We determine value-in-use by using estimates including projected future revenues, earnings, working capital, and capital investment consistent withstrategic plans presented to the board of directors of the Company. Discount rates are consistent with external industryinformation reflecting the risk associated with the specific cash flows.

Income and other taxes. Current and deferred income taxes are recognized in the consolidated statements of income andcomprehensive income, except when it relates to a business combination, or items recognized in equity or in othercomprehensive income. Application of judgment is required regarding the classification of transactions and in assessingprobable outcomes of claimed deductions including expectations about future operating results, the timing and reversal oftemporary differences and possible audits of income tax and other tax filings by the tax authorities in the various jurisdictions inwhich the Company operates.

Warranty. The critical assumptions and estimates used in determining the warranty provision at the balance sheet date are:number of jackets expected to require repair or replacement; proportion to be repaired versus replaced; period in which thewarranty claim is expected to occur; cost of repair; cost of jacket replacement; and risk-free rate used to discount the provisionto present value. We review our inputs to this estimate on a quarterly basis to ensure the provision reflects the most currentinformation regarding our products.

CHANGES IN ACCOUNTING POLICIESStandards issued and adopted

In May 2020, the IASB issued an amendment to IFRS 16, Leases exempting lessees from determining whether COVID-19related rent concessions are lease modifications. The amendment is effective for annual reporting periods beginning on or afterJune 1, 2020 and earlier application is permitted. In accordance with the guidance issued, the Company adopted theamendment effective March 30, 2020 and elected not to treat COVID-19 related rent concessions as lease modifications.

Standards issued and not yet adopted

Certain new standards, amendments, and interpretations to existing IFRS standards have been published but are not yeteffective and have not been adopted early by the Company. Management anticipates that pronouncements will be adopted inthe Company’s accounting policy for the first period beginning after the effective date of the pronouncement. Information on newstandards, amendments, and interpretations is provided below.


In January 2020, the IASB issued an amendment to IAS 1, Presentation of Financial Statements to clarify its requirements forthe presentation of liabilities in the statement of financial position. The limited scope amendment affected only the presentationof liabilities in the statement of financial position and not the amount or timing of its recognition. The amendment clarified that theclassification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period andspecified that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of aliability. It also introduced a definition of ‘settlement’ to make clear that settlement refers to the transfer to the counterparty ofcash, equity instruments, other assets or services. The amendment is effective for annual reporting periods beginning on or afterJanuary 1, 2023. Earlier application is permitted. The Company is assessing the potential impact of the amendment.

SUBSEQUENT EVENTSAmendments to the Term Loan Facility and related hedging transactions

On October 7, 2020, the Company entered into a refinancing amendment to the Term Loan Facility to increase the aggregateprincipal amount to US$300.0m from US$113.8m. The amendment to the Term Loan Facility increased the interest to a rate ofLIBOR plus an applicable margin of 4.25%, provided that LIBOR may not be less than 0.75%, and extended the maturity date toOctober 7, 2027. On October 30, 2020, the Company terminated its existing derivative contracts associated with the previousterm loan and entered into new derivative transactions to better align with the refinancing amendment to the term loan. TheCompany entered into a five-year cross-currency swap by selling US$270.0m bearing interest at LIBOR plus an applicablemargin of 4.25%, provided that LIBOR may not be less than 0.75%, for a fixed rate debt bearing interest of 5.20% and a five-year forward exchange contract to buy $368.5m, or US$270.0m in equivalent U.S. dollars as measured on the trade date to fixthe foreign exchange risk on the portion of the term loan borrowings.

INTERNAL CONTROL OVER FINANCIAL REPORTING

Disclosure Controls and Procedures

Management, including the CEO and CFO, has evaluated the effectiveness of our disclosure controls and procedures (asdefined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based on that evaluation, the CEO and CFO concluded thatsuch disclosure controls and procedures were effective as at September 27, 2020 to provide reasonable assurance that theinformation required to be disclosed by the Company in reports it files is recorded, processed, summarized and reported, withinthe appropriate time periods and is accumulated and communicated to management, as appropriate to allow timely decisionsregarding required disclosure.

Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal controlover financial reporting is a process designed by, or under the supervision of, the CEO and the CFO and effected by the Boardof Directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance with International Financial ReportingStandards. The Company’s internal control over financial reporting includes policies and procedures that:


• Pertain to the maintenance of records that accurately and fairly reflect, in reasonable detail, the transactions anddispositions of assets of the Company;

• Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statementsin accordance with IFRS and that the receipts and expenditures of the Company are made only in accordance withauthorizations of management and directors; and

• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition ofthe assets of the Company that could have a material effect on the consolidated financial statements.

There has been no change in the Company’s internal control over financial reporting during the two quarters ended September27, 2020 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financialreporting.

Limitations of Controls and Procedures

Due to its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements.Management's projections of any evaluation of the effectiveness of internal control over financial reporting as to future periodsare subject to the risks that controls may become inadequate because of changes in conditions, or that the degree ofcompliance with the policies or procedures may deteriorate.


CERTIFICATION

I, Dani Reiss, certify that: 1. I have reviewed the financial statements and MD&A for the second and two quarters ended September 27, 2020 of Canada

Goose Holdings Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact

necessary to make the statements made, in light of the circumstances under which such statements were made, notmisleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all

material respects the financial condition, results of operations and cash flows of the company as of, and for, the periodspresented in this report;

4. The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (asdefined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and we have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designedunder our supervision, to ensure that material information relating to the company, including its consolidatedsubsidiaries, is made known to us by others within those entities, particularly during the period in which this report isbeing prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to bedesigned under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered bythis report based on such evaluation; and

d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during thecompany’s most recent fiscal quarter (the company’s fourth fiscal quarter in the case of an annual report) that hasmaterially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting;and

5. The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or personsperforming the equivalent function):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize andreport financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in thecompany’s internal control over financial reporting.

Date: November 5, 2020

By: /s/ Dani Reiss Dani Reiss President and Chief Executive Officer

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CERTIFICATION

I, Jonathan Sinclair, certify that: 1. I have reviewed the financial statements and MD&A for the second and two quarters ended September 27, 2020 of Canada

Goose Holdings Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact

necessary to make the statements made, in light of the circumstances under which such statements were made, notmisleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all

material respects the financial condition, results of operations and cash flows of the company as of, and for, the periodspresented in this report;

4. The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (asdefined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and we have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designedunder our supervision, to ensure that material information relating to the company, including its consolidatedsubsidiaries, is made known to us by others within those entities, particularly during the period in which this report isbeing prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to bedesigned under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered bythis report based on such evaluation; and

d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during thecompany’s most recent fiscal quarter (the company’s fourth fiscal quarter in the case of an annual report) that hasmaterially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting;and

5. The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or personsperforming the equivalent function):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize andreport financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in thecompany’s internal control over financial reporting.

Date: November 5, 2020

By: /s/ Jonathan Sinclair Jonathan Sinclair

Executive Vice President and Chief Financial

Officer

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Canada Goose Reports Results for Second Quarter Fiscal 2021

Second Quarter Fiscal 2021 Highlights (in Canadian dollars):

• Total revenue $194.8m• Net income $10.4m, or $0.09 per diluted share• Non-IFRS adjusted EBIT $15.7m, representing an 8.1% margin• Non-IFRS adjusted net income per diluted share of $0.10

TORONTO, ON (November 5, 2020) - Canada Goose Holdings Inc. (“Canada Goose” or the “Company”) (NYSE:GOOS, TSX:GOOS)

today announced financial results for the second quarter ended September 27, 2020.

“We have accelerated our best strategic opportunities in today’s environment. Mainland China has already returned to growth and our digital

business is accelerating in a meaningful way at the right time,” said Dani Reiss, President & CEO. “This is a strong backdrop as we head into

peak Canada Goose season.”

Second Quarter Fiscal 2021 Business Highlights (compared to Second Quarter Fiscal 2020)

• DTC revenue in Mainland China increased by over 30%.

• Global e-Commerce revenue increased by over 10%, with an acceleration of growth in September.

• Adjusted EBIT margin was positive for the first time since the onset of the pandemic, despite significant revenue disruptions. This

reflects the financial resilience of Canada Goose’s high margin business model and implemented cost saving initiatives.

Second Quarter Fiscal 2021 Results (compared to Second Quarter Fiscal 2020)

• Total revenue was $194.8m from $294.0m.

• DTC revenue was $46.2m from $74.2m. The decrease was driven by lower retail traffic due to COVID-19 disruptions globally.

Revenue generated through e-Commerce was higher than the comparative quarter.

• Wholesale revenue was $118.5m from $218.1m. The decrease was a result of the continued impact of COVID-19 including the

significant reduction in the planned order book and requests from partners and international distributors for later shipment timing

relative to the comparative quarter.

• Other revenue was $30.1m from $1.7m. The increase was driven by PPE sales in support of COVID-19 response efforts.

• Gross profit was $94.2m, a gross margin of 48.4%, compared to $160.4m and 54.6%. The decrease in gross profit was attributable to

the decline in revenue, partially offset by $7.8m of government payroll subsidies.

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The decrease in gross margin was a result of a higher proportion of Other revenue, partially offset by a higher DTC gross margin.

Excluding the impact of the sale of PPE, gross margin was 56.1%, 150 bps above the comparative quarter.

• DTC gross profit was $35.5m, a gross margin of 76.8%, compared to $56.1m and 75.6%. The decrease in gross profit was driven

by the decline in segment revenue. The increase in gross margin was attributable to $0.8m (+170 bps) of government payroll

subsidies, partially offset by $0.4m (-90 bps) of higher costs per unit as production levels were limited and also impacted by

COVID-19 safety protocols at our manufacturing facilities.

• Wholesale gross profit was $56.4m, a gross margin of 47.6%, compared to $103.8m and 47.6%. The decrease in gross profit was

driven by the decline in segment revenue. Gross margin remained flat and included $7.0m (+570 bps) of government payroll

subsidies, offset by $3.8m (-310 bps) of higher costs per unit as production levels were limited and also impacted by COVID-19

safety protocols at our manufacturing facilities, and $2.2m (-180 bps) resulting from a higher proportion of distributor sales

relative to the comparative quarter.

• Other segment gross profit was $2.3m from $0.5m. PPE gross profit and gross margin were $1.0m and 3.5%.

• Operating income was $15.1m, an operating margin of 7.8%, compared to $75.4m and an operating margin of 25.6%. The decrease in

operating income and operating margin was a result of reduced revenue due to COVID-19.

• DTC operating income was $7.1m, an operating margin of 15.4%, compared to $30.0m and an operating margin of 40.4%. The

decrease in operating income was attributable to the decline in revenue, partially offset by $1.7m of savings from rent abatements

and $1.6m of government payroll subsidies. Pre-store opening costs and COVID-19 related temporary store closure costs of

$2.8m and $0.4m, respectively, were recognized. The decline in DTC operating margin reflects fixed cost deleverage resulting

from lower revenue.

• Wholesale operating income was $44.9m, an operating margin of 37.9%, compared to $90.4m and an operating margin of 41.4%.

The decrease in operating income was attributable to the decline in revenue partially offset by cost reduction efforts in response

to COVID-19 and supplemented by $7.6m of government payroll subsidies. The decline in operating margin reflects fixed cost

deleverage as a result of lower revenue.

• Other operating loss was $(36.9)m from $(45.0)m. The decrease in operating loss was attributable to cost saving initiatives across

the business in response to COVID-19 including reductions of $4.3m in marketing costs as well as $2.7m of government payroll

subsidies, partially offset by $1.0m of product development costs.

• Net income was $10.4m, or $0.09 per diluted share, compared to net income of $60.6m, or $0.55 per diluted share.

• Adjusted EBIT was $15.7m from $79.2m.(1)

2

• Adjusted net income was $11.5m, or $0.10 per diluted share, compared to adjusted net income $63.6m, or $0.57 per diluted share.

See “Non-IFRS Financial Measures”.

Outlook

Given continued global uncertainties, including second wave shutdowns and disruptions, the pace of retail traffic recovery, and the impact of

economic developments and travel restrictions, all of which are unknown, the Company continues to not provide an outlook for fiscal 2021.

Conference Call Information

Dani Reiss, President and Chief Executive Officer and Jonathan Sinclair, EVP and Chief Financial Officer, will host the conference call at

9:00 a.m. Eastern Time on November 5, 2020. Those interested in participating are invited to dial (866) 211-4197 or (647) 689-6828 if

calling internationally and reference Conference ID 5256487 when prompted. A live audio webcast of the conference call will be available

online at http://investor.canadagoose.com.

About Canada Goose

Founded in a small warehouse in Toronto, Canada in 1957, Canada Goose has grown into one of the world’s leading makers of performance

luxury apparel. Every collection is informed by the rugged demands of the Arctic and inspired by relentless innovation and uncompromised

craftsmanship. From the coldest places on Earth to global fashion capitals, people are proud to wear Canada Goose products. Canada Goose

is a recognized leader for its Made in Canada commitment, and is a long-time partner of Polar Bears International. Visit

www.canadagoose.com for more information.

Non-IFRS Financial Measures

This press release includes references to certain non-IFRS financial measures such as adjusted EBIT, adjusted EBIT margin, adjusted net

income (loss) and adjusted net income (loss) per diluted share. These financial measures are employed by the Company to measure its

operating and economic performance and to assist in business decision-making, as well as providing key performance information to senior

management. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors and

analysts use this information to evaluate the Company’s operating and financial performance. These financial measures are not defined under

IFRS nor do they replace or supersede any standardized measure under IFRS. Other companies in our industry may calculate these measures

differently than we do, limiting their usefulness as comparative measures. Definitions and reconciliations of non-IFRS measures to the

nearest IFRS measure can be found in our MD&A. Such reconciliations can also be found in this press release under “Reconciliation of Non-

IFRS Measures”.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements, including statements relating to the Company’s anticipated fiscal 2021 performance,

the execution of our proposed strategy, investments and product introductions, the pace of retail re-openings and the general impact of the

COVID-19 pandemic on the business. These forward-looking

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statements generally can be identified by the use of words such as “anticipate,” “believe,” “could,” “continue,” “expect,” “estimate,”

“forecast,” “may,” “potential,” “project,” “plan,” “would,” “will,” and other words of similar meaning. Each forward-looking statement

contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or

implied by such statement. Our business is subject to substantial risks and uncertainties. Applicable risks and uncertainties include, among

others, the impact of the ongoing COVID-19 pandemic, and are discussed under the headings “Cautionary Note regarding Forward-Looking

Statements” and “Factors Affecting our Performance” in our MD&A as well as in our “Risk Factors” in our Annual Report on Form 20-F for

the year ended March 29, 2020. You are also encouraged to read our filings with the SEC, available at www.sec.gov, and our filings with

Canadian securities regulatory authorities available at www.sedar.com for a discussion of these and other risks and uncertainties. Investors,

potential investors, and others should give careful consideration to these risks and uncertainties. We caution investors not to rely on the

forward-looking statements contained in this press release when making an investment decision in our securities. The forward-looking

statements in this press release speak only as of the date of this release, and we undertake no obligation to update or revise any of these

statements.

4

Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)(unaudited)(in millions of Canadian dollars, except share and per share amounts)


2020September 29,

2019September 27,

2020September 29,

2019 $ $ $ $

Revenue 194.8 294.0 220.9 365.1 Cost of sales 100.6 133.6 121.9 163.8 Gross profit 94.2 160.4 99.0 201.3

Gross margin 48.4 % 54.6 % 44.8 % 55.1 %Selling, general and administrative expenses 62.4 73.5 111.0 131.0

SG&A expenses as % of revenue 32.0 % 25.0 % 50.2 % 35.9 %Depreciation and amortization 16.7 11.5 32.2 22.4 Operating income (loss) 15.1 75.4 (44.2) 47.9

Operating margin 7.8 % 25.6 % (20.0)% 13.1 %Net interest, finance and other costs 6.0 5.9 12.7 18.1 Income (loss) before income taxes 9.1 69.5 (56.9) 29.8 Income tax (recovery) expense (1.3) 8.9 (17.2) (1.4)

Effective tax rate (14.3)% 12.8 % (30.2)% (4.7)%Net income (loss) 10.4 60.6 (39.7) 31.2 Other comprehensive income (loss) 2.1 (2.6) 4.1 1.3 Comprehensive income (loss) 12.5 58.0 (35.6) 32.5 Earnings (loss) per shareBasic $ 0.09 $ 0.55 $ (0.36) $ 0.29 Diluted $ 0.09 $ 0.55 $ (0.36) $ 0.28

Weighted average number of shares outstandingBasic 110,143,728 109,539,715 110,104,158 109,239,463 Diluted 110,888,447 110,831,032 110,104,158 110,675,394

Other data:EBIT 15.1 75.4 (44.2) 47.9 Adjusted EBIT 15.7 79.2 (30.8) 53.3 Adjusted EBIT margin 8.1 % 26.9 % (13.9)% 14.6 %Adjusted net income (loss) 11.5 63.6 (26.9) 40.8 Adjusted net income (loss) per basic share $ 0.10 $ 0.58 $ (0.24) $ 0.37 Adjusted net income (loss) per diluted share $ 0.10 $ 0.57 $ (0.24) $ 0.37

See “Non-IFRS Financial Measures”.

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Condensed Consolidated Interim Statements of Financial Position(unaudited)(in millions of Canadian dollars)

September 27, 2020

September 29, 2019

March 29, 2020

Assets $ $ $Current assetsCash 156.3 34.2 31.7 Trade receivables 114.9 148.3 32.3 Inventories 417.2 365.2 412.3 Income taxes receivable 10.8 5.5 12.0 Other current assets 36.9 45.3 43.5 Total current assets 736.1 598.5 531.8

Deferred income taxes 62.1 38.9 40.8 Property, plant and equipment 120.1 102.7 115.1 Intangible assets 157.4 157.6 161.7 Right-of-use assets 247.7 210.5 211.8 Goodwill 53.1 53.1 53.1 Other long-term assets 1.1 4.6 6.0 Total assets 1,377.6 1,165.9 1,120.3

LiabilitiesCurrent liabilitiesAccounts payable and accrued liabilities 163.6 144.9 144.4 Provisions 17.9 9.3 15.6 Income taxes payable 13.1 9.3 13.0 Short-term borrowings 11.0 17.8 — Lease liabilities 43.5 32.6 35.9 Total current liabilities 249.1 213.9 208.9

Provisions 19.6 16.3 21.4 Deferred income taxes 15.9 17.8 15.1 Revolving facility 222.5 177.7 — Term loan 151.2 149.3 158.1 Lease liabilities 223.2 191.6 192.0 Other long-term liabilities 6.4 6.5 4.6 Total liabilities 887.9 773.1 600.1

Shareholders' equity 489.7 392.8 520.2 Total liabilities and shareholders' equity 1,377.6 1,165.9 1,120.3

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Reconciliation of Non-IFRS Measures

The tables below reconcile net income (loss) to EBIT, adjusted EBIT, and adjusted net income (loss) for the periods indicated. AdjustedEBIT margin is equal to adjusted EBIT for the period presented as a percentage of revenue for the same period.



2020September 29,

2019September 27,

2020September 29,

2019Net income (loss) 10.4 60.6 (39.7) 31.2 Add (deduct) the impact of:Income tax (recovery) expense (1.3) 8.9 (17.2) (1.4)Net interest, finance and other costs 6.0 5.9 12.7 18.1 EBIT 15.1 75.4 (44.2) 47.9 Costs of the Baffin acquisition (a) 0.5 0.9 0.9 1.4 Unrealized foreign exchange gain on Term LoanFacility (b) (0.9) (0.9) (1.0) (2.4)Transition of logistics agencies (c) 0.7 — 2.2 — Net temporary store closure costs (d) 0.3 — 5.8 — Net excess overhead costs from temporary closure ofmanufacturing facilities (d) — — 4.3 — Pre-store opening costs (e) 2.8 3.6 3.7 5.9 Non-cash provision release (f) (3.0) — (3.0) — Other 0.2 0.2 0.5 0.5 Total adjustments 0.6 3.8 13.4 5.4 Adjusted EBIT 15.7 79.2 (30.8) 53.3 Adjusted EBIT margin 8.1 % 26.9 % (13.9) % 14.6 %



2020September 29,

2019September 27,

2020September 29,

2019Net income (loss) 10.4 60.6 (39.7) 31.2 Add (deduct) the impact of:Costs of the Baffin acquisition (a) 0.5 0.9 0.9 1.4 Unrealized foreign exchange gain on Term LoanFacility (b) (0.9) (0.9) (1.0) (2.4)Transition of logistics agencies (c) 0.7 — 2.2 — Net temporary store closure costs (d) (g) 0.4 — 7.1 — Net excess overhead costs from temporary closure ofmanufacturing facilities (d) — — 4.3 — Pre-store opening costs (h) 3.1 4.0 4.2 6.8 Non-cash provision release (f) (3.0) — (3.0) — Acceleration of unamortized costs on term loanrefinancing (i) —

— — 7.0

Restructuring expense (d) 0.1 — 1.7 — Other 0.2 0.2 0.5 0.5 Total adjustments 1.1 4.2 16.9 13.3 Tax effect of adjustments — (1.2) (4.1) (3.7)Adjusted net income (loss) 11.5 63.6 (26.9) 40.8

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(a) Costs in connection with the Baffin acquisition and the impact of gross margin that would otherwise have been recognized on inventoryrecorded at net realizable value less costs to sell.

(b) Unrealized gains and losses on the translation of the Term Loan Facility from USD to CAD, net of the effect of derivative transactionsentered into to hedge a portion of the exposure to foreign currency exchange risk.

(c) Costs incurred for the transition of logistics, warehousing, and freight forwarding agencies to enhance our global distribution structure.

(d) Total government payroll subsidies globally of $12.0m and $20.7m were recognized in the second and two quarters ended September 27,2020, respectively. These subsidies were recorded as a reduction to the associated wage costs which the Company incurred; as a resultpayroll subsidies were recorded as a reduction to excess overhead costs from temporary closure of manufacturing facilities ($7.8m and$9.1m), temporary store closure costs ($0.5m and $1.4m), and restructuring expense ($0.1m and $0.4m), for the second and two quartersended September 27, 2020, respectively. The benefit of $11.4m and $17.6m of wage subsidies therefore remained in adjusted EBIT as areduction to the associated wage costs for the second and two quarters ended September 27, 2020, respectively.

(e) Costs incurred during pre-opening periods for new retail stores, including depreciation on right-of-use assets.

(f) Release of a non-cash sales contract provision as a result of the expiration of the statute of limitations in the respective jurisdiction in thesecond and two quarters ended September 27, 2020.

(g) Includes $0.1m and $1.3m of interest expense on lease liabilities for temporary store closures second and two quarters ended September27, 2020, respectively.

(h) Pre-store opening costs incurred in (e) above plus $0.3m and $0.5m of interest expense on lease liabilities for new retail stores during pre-opening periods for the second and two quarters ended September 27, 2020 (second and two quarters ended September 29, 2019 - $0.4mand $0.9m, respectively).

(i) The non-cash unamortized costs accelerated in connection with the amendments to the Term Loan Facility on May 10, 2019.

Investors:

[email protected]

Media:

[email protected]

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