SECURITIES AND EXCHANGE COMMISSIONd18rn0p25nwr6d.cloudfront.net › CIK-0001690511 ›...

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 August, 2018

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)

IndicatebycheckmarkwhethertheregistrantfilesorwillfileannualreportsundercoverForm20-ForForm40-F.Form20-FxForm40-F¨

IndicatebycheckmarkiftheregistrantissubmittingtheForm6-KinpaperaspermittedbyRegulationS-TRule101(b)(1):IndicatebycheckmarkiftheregistrantissubmittingtheForm6-KinpaperaspermittedbyRegulationS-TRule101(b)(7):

SIGNATURES

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.

Canada Goose Holdings Inc.

By: /s/JonathanSinclair

Name: JonathanSinclair

Title: ExecutiveVicePresidentand

ChiefFinancialOfficer

Date:August9,2018

EXHIBIT INDEX

Exhibit

No. Description

99.1 ConsolidatedInterimFinancialStatementsfortheThreeMonthsEndedJune30,201899.2

Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperationsfortheThreeMonthsEndedJune30,2018

99.3 Rule13a-14(a)/15d-14(a)CertificationofChiefExecutiveOfficer99.4 Rule13a-14(a)/15d-14(a)CertificationofChiefFinancialOfficer99.5 PressreleaseofCanadaGooseHoldingsInc.,datedAugust9,2018

CanadaGooseHoldingsInc.CondensedConsolidatedInterimFinancialStatementsAsatandforthethreemonthsendedJune30,2018and2017(Unaudited)

CondensedConsolidatedInterimStatementsofLossandComprehensiveLoss(unaudited)ForthethreemonthsendedJune30(inmillionsofCanadiandollars,exceptpershareamounts)

Notes 2018 2017 $ $

Revenue 3 44.7 28.2Costofsales 6 16.1 15.0Grossprofit 28.6 13.2Selling,generalandadministrativeexpenses 45.1 25.8Depreciationandamortization 3.4 2.2Operatingloss (19.9) (14.8)Netinterestandotherfinancecosts 9 3.1 3.1Lossbeforeincometaxes (23.0) (17.9)Incometaxrecovery (4.3) (5.8)Netloss (18.7) (12.1)

Othercomprehensive(loss)income

Itemsthatmaybereclassifiedtoearnings,netoftax:

Cumulativetranslationadjustment (1.0) 0.2Netlossonderivativesdesignatedascashflowhedges (2.1) (0.1)Reclassificationofnetlossoncashflowhedgestoincome 1.3 —Gainonnetinvestmenthedge 1.5 —

Othercomprehensive(loss)income (0.3) 0.1Comprehensiveloss (19.0) (12.0)

Earnings(loss)pershare 4

Basicanddiluted (0.17) (0.11)

Theaccompanyingnotestothecondensedconsolidatedinterimfinancialstatementsareanintegralpartofthisfinancialstatement.

CanadaGooseHoldingsInc.Page1of27

CondensedConsolidatedInterimStatementsofFinancialPosition(unaudited)AsatJune30,2018and2017andMarch31,2018(inmillionsofCanadiandollars)

June30 June30 March31 Notes 2018 2017 2018Assets $ $ $Currentassets

Cash 14.6 13.1 95.3Tradereceivables 5 12.4 8.5 11.9Inventories 6 239.5 177.0 165.4Incometaxesreceivable 8.0 5.6 5.1Othercurrentassets 14 32.4 12.4 23.3Totalcurrentassets 306.9 216.6 301.0 Deferredincometaxes 10.5 10.1 3.0Property,plantandequipment 64.2 40.4 60.2Intangibleassets 140.1 131.7 136.8Otherlong-termassets 14 4.5 — 2.1Goodwill 45.3 45.3 45.3Totalassets 571.5 444.1 548.4 Liabilities

Currentliabilities

Accountspayableandaccruedliabilities 7,14 90.0 47.4 109.6Provisions 8 4.3 4.7 6.3Incometaxespayable 0.3 — 17.7Totalcurrentliabilities 94.6 52.1 133.6 Provisions 8 10.5 9.4 10.8Deferredincometaxes 12.5 11.2 13.3Revolvingfacility 9 76.9 97.3 —Termloan 9 140.4 136.6 137.1Otherlong-termliabilities 14 10.8 3.1 10.0Totalliabilities 345.7 309.7 304.8 Shareholders'equity 10 225.8 134.4 243.6Totalliabilitiesandshareholders'equity 571.5 444.1 548.4



CondensedConsolidatedInterimStatementsofChangesinShareholders'Equity(unaudited)ForthethreemonthsendedJune30,2018and2017(inmillionsofCanadiandollars)

CommonSharesContributed

SurplusRetainedEarnings

AccumulatedOther

ComprehensiveLoss Total

Notes

Multiplevotingshares

Subordinatevotingshares Total

$ $ $ $ $ $ $

BalanceasatMarch31,2018 1.9 104.2 106.1 4.5 136.1 (3.1) 243.6Convertmultiplevotingsharestosubordinatevotingshares 10 (0.3) 0.3 — — — — —Exerciseofstockoptions 10 — 1.4 1.4 (0.6) — — 0.8

Netloss — — — — (18.7) — (18.7)Othercomprehensiveloss — — — — — (0.3) (0.3)Recognitionofshare-basedcompensation 11 — — — 0.4 — — 0.4BalanceasatJune30,2018 1.6 105.9 107.5 4.3 117.4 (3.4) 225.8

BalanceasatMarch31,2017 2.2 101.1 103.3 4.0 40.1 (1.3) 146.1Convertmultiplevotingsharestosubordinatevotingshares 10 (0.1) 0.1 — — — — —Exerciseofstockoptions 10 — 0.5 0.5 (0.4) — — 0.1

Netloss — — — — (12.1) — (12.1)Othercomprehensiveincome — — — — — 0.1 0.1Recognitionofshare-basedcompensation 11 — — — 0.2 — — 0.2BalanceasatJune30,2017 2.1 101.7 103.8 3.8 28.0 (1.2) 134.4



CondensedConsolidatedInterimStatementsofCashFlows(unaudited)ForthethreemonthsendedJune30(inmillionsofCanadiandollars)

Notes 2018 2017 $ $CASHFLOWSFROMOPERATINGACTIVITIES:

Netloss (18.7) (12.1)Itemsnotaffectingcash

Depreciationandamortization 4.4 3.1Incometaxrecovery (4.3) (5.8)Interestexpense 3.0 3.0Unrealizedforeignexchangegain (1.2) (3.3)Share-basedcompensation 11 0.4 0.2

(16.4) (14.9) Changesinnon-cashoperatingitems 16 (111.6) (61.3) Incometaxespaid (24.3) (1.3)Interestpaid (2.2) (2.5)Netcashusedinoperatingactivities (154.5) (80.0) CASHFLOWSFROMINVESTINGACTIVITIES:

Purchaseofproperty,plantandequipment (2.1) (5.6)Investmentinintangibleassets (2.8) (1.3)Businesscombination — (0.3)Netcashusedininvestingactivities (4.9) (7.2) CASHFLOWSFROMFINANCINGACTIVITIES:

Borrowingsonrevolvingfacility 9 78.5 90.5Exerciseofstockoptions 11 0.8 0.1Netcashfromfinancingactivities 79.3 90.6 Effectsofforeigncurrencyexchangeratechangesoncash (0.6) — (Decrease)increaseincash (80.7) 3.4 Cash,beginningofperiod 95.3 9.7Cash,endofperiod 14.6 13.1



NotestotheCondensedConsolidatedInterimFinancialStatements(unaudited)AsatandforthethreemonthsendedJune30,2018and2017(inmillionsofCanadiandollars,exceptshareandpershareamounts)

Note1.TheCompany

Organization

CanadaGooseHoldingsInc.anditssubsidiaries(the“Company”)design,manufacture,andsell premiumoutdoorapparelformen,women,youth,children,andbabies.TheCompany’sapparelcollectionsincludevariousstylesofparkas,jackets,shells,vests, knitwear and accessories for the fall, winter, and spring seasons. The Company’s headoffice is located at 250 BowieAvenue,Toronto,CanadaM6E4Y2.Theuseoftheterms“CanadaGoose”,“we”,“us”and“our”throughoutthesenotestothecondensedconsolidatedinterimfinancialstatements("InterimFinancialStatements")refertotheCompany.

CanadaGooseisapubliccompanylistedontheTorontoStockExchangeandtheNewYorkStockExchangeunderthetradingsymbol“GOOS”.TheprincipalshareholdersoftheCompanyareinvestmentfundsadvisedbyBainCapitalLPanditsaffiliates(“Bain Capital”), and DTR LLC (“DTR”), an entity indirectly controlled by the President and Chief Executive Officer of theCompany.Theprincipalshareholdersholdmultiplevotingsharesrepresenting55.9%ofthetotalsharesoutstandingasatJune30,2018, or92.7%of thecombinedvotingpower of theoutstandingvotingshares. Subordinatevotingsharesthat tradeonpublicmarketsrepresent44.1%ofthetotalsharesoutstandingasatJune30,2018,or7.3%ofthecombinedvotingpoweroftheoutstandingvotingshares.

Thefiscalyear-endoftheCompanyisMarch31.

The accompanying Interim Financial Statements include the accounts and results of the Company and its wholly ownedsubsidiaries:

Subsidiaries LocationCanadaGooseInc. CanadaCanadaGooseUS,Inc. UnitedStatesCanadaGooseInternationalAG SwitzerlandCanadaGooseUKRetailLimited UnitedKingdomCanadaGooseInternationalHoldingsLimited UnitedKingdomCanadaGooseEuropeAB SwedenCanadaGooseServicesLimited UnitedKingdomCanadaGooseTradingInc. CanadaCanadaGooseAsiaHoldingsLimited HongKongCanadaGooseHKLimited HongKongCG(Shanghai)TradingCo.,Ltd. China

OperatingSegments

The Company classifies its business in two operating and reportable segments: Wholesale and Direct-to-Consumer. TheWholesalebusinesscomprisessalesmadetoamixoffunctionalandfashionableretailers,includingmajorluxurydepartmentstores,outdoorspecialtystores,individualshops,andtointernationaldistributors.

TheDirect-to-Consumerbusinesscomprisessalesthroughthecountry-specifice-commerceplatformsanditsCompany-ownedretailstores.



Financialinformationforthetworeportableoperatingsegmentsisincludedinnote3.

Seasonality

Weexperienceseasonalfluctuationsinourrevenueandoperatingresultsandhistoricallyhaverealizedasignificantportionofourwholesalerevenueandoperatingincomefortheyearduringoursecondandthirdfiscal quartersandDirect-to-Consumerrevenueandoperatingincomeinourthirdandfourthfiscal quarters. Thus, lower-than-expectednet revenueintheseperiodscouldhaveanadverseimpactonourannualoperatingresults.

Working capital requirements typically increase during the first and second quarters of the fiscal year as inventory builds tosupportpeakshippingandsellingperiodsand,accordingly,typicallydecreaseduringthethirdandfourthquartersofthefiscalyearasinventoryissold.ExpensesinourDirect-to-Consumerchannelareconsistentovertheyearwhilerevenueandrelatedcashcollectionsfluctuate.Borrowingsonourrevolvingfacilityhavehistoricallyincreasedoverthefirstandsecondquarters,andarerepaidoverthebalanceofthefiscal year. Cashflowsfromoperatingactivitiesaretypicallyhighestinthethirdandfourthquartersofthefiscalyearduetoreducedworkingcapitalrequirementsduringthatperiodandincreasedcashinflowsfromthepeaksellingseason.

Note2.Significantaccountingpolicies

Statementofcompliance

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”). Certain information, which isconsideredmaterialtotheunderstandingoftheCompany'sInterimFinancialStatementsandisnormallyincludedintheannualfinancial statements prepared in accordance with International Financial Reporting Standards ("IFRS"), is provided in thesenotes. These Interim Financial Statements do not include all of the information required for annual financial statements andshouldbereadinconjunctionwiththeCompany’sannualconsolidatedfinancialstatementsfortheyearendedMarch31,2018.TheseInterimFinancialStatementsandtheaccompanyingnoteshavebeenpreparedusingtheaccountingpoliciesdescribedinnote2totheannualconsolidatedfinancialstatements,exceptasnotedbelow.

The Interim Financial Statements were authorized for issuance in accordance with a resolution of the Company’s Board ofDirectorsonAugust8,2018.

Basisofpresentation

Thesignificantaccountingpoliciesandcritical accountingestimatesandjudgmentsasdisclosedintheCompany’sMarch31,2018annual consolidated financial statements have been applied consistently in the preparation of these Interim FinancialStatements,exceptfortheadoptionofnewstandardseffectiveApril1,2018,asnotedbelow.TheInterimFinancialStatementsarepresentedinCanadiandollars,theCompany’sfunctionalandpresentationcurrency.

Principlesofconsolidation

TheInterimFinancialStatementsincludetheCompanyanditswhollyownedsubsidiaries(note1).Allintercompanyaccountsandtransactionshavebeeneliminated.

Standardsissuedandadopted



Certainnewstandardsbecameeffectiveatthebeginningofthecurrentfiscalyear.Theimpactfromtheadoptionofthesenewstandardsisdescribedbelow.

RevenueEffective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2018, the IASBissued IFRS 15,Revenue from Contracts with Customers (“IFRS 15”) which replaces the guidance on revenue recognitionrequirementsthatpreviouslyexistedunderIFRS.Thenewstandardprovidesacomprehensiveframeworkfortherecognition,measurementanddisclosureofrevenuefromcontractswithcustomers,excludingcontractswithinthescopeoftheaccountingstandardsonleases,insurancecontractsandfinancialinstruments.IFRS15alsocontainsenhanceddisclosurerequirements.

The Company adopted the standard effective April 1, 2018 using the modified retrospective approach , which resulted in noadjustment to openingretainedearnings. Comparativeinformationhasnot beenrestatedandcontinuestobereportedunderpreviousaccountingstandards.Aftercompletingtheanalysisofitscustomercontracts,theCompanyhasdeterminedthattheimplementationofIFRS15didnotresultinanyadjustmentstotheopeningbalanceofretainedearningsortothepresentationoftheInterimFinancialStatements.

AsaresultofadoptingIFRS15,theCompanyupdateditsaccountingpoliciesfortherecognitionofrevenueassetoutbelow:

Revenue recognitionRevenuecomprises the consideration to which the Company expects to be entitled in exchangefor the sale of goods in theordinarycourseof theCompany’s activities. Revenueis presentednet of salestax, estimatedreturns, salesallowances, anddiscounts. TheCompanyrecognizesrevenuewhentheCompanyhasagreedtermswithits customers, thecontractual rightsand payment terms have been identified, the contract has commercial substance, it is probable that consideration will becollected by the Company, and when specific criteria for transfer of control to the customer have been met for each of theCompany’sactivities,asdescribedbelow.

i) Wholesale

Wholesalerevenuecomprisessalestothird-partyresellers(whichincludesinternationaldistributorsandretailers)oftheCompany’sproducts.Wholesalerevenuefromthesaleofgoodsisrecognized,netof anestimatedprovisionforsalesreturns,discountsandallowances,whenthecontrolofthegoodshasbeentransferredtotheresellerwhichdependsontheprecisetermsoftheagreementwitheachreseller.

TheCompany,atitsdiscretion,maycancelalloraportionofanyfirmwholesalesalesorder.TheCompanyisthereforeobligated to return any prepayments or deposits madeby resellers for which the product is not provided. All advancepaymentsarethereforeincludedinaccruedliabilitiesinthestatementoffinancialposition.

ii) Direct-to-Consumer

Direct-to-Consumer revenue consists of sales through the Company’s e-commerce operations and Company-ownedretailstores.Salesthroughe-commerceoperationsarerecognizeduponestimateddeliveryofthegoodstothecustomer,net of an estimated provision for sales returns, when control of the goods has transferred from the Company to thecustomer.SalesthroughourCompany-ownedretailstoresarerecognizedupondeliverytothecustomeratthepointofsale,netofanestimatedprovisionforsalesreturns.



It is the Company’s policy to sell merchandise through the Direct-to-Consumer channel with a limited right to return,typicallywithin30days.Accumulatedexperienceisusedtoestimateandprovideforsuchreturns.

TheCompany’swarrantyobligationistoprovideanexchangeorrepairformanufacturingdefectiveproductsunderthestandardwarrantytermsandconditions.Thewarrantyobligationisrecognizedasaprovisionwhengoodsaresold.

FinancialinstrumentsEffective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2018, the IASBissuedIFRS9,FinancialInstruments(“IFRS9”)whichreplacesIAS39,FinancialInstruments:RecognitionandMeasurementandallpreviousversionsofIFRS9.IFRS9introducesnewrequirementsforclassificationandmeasurement,impairment,andhedgeaccountingandnewimpairmentrequirementsthat arebasedonaforward-lookingexpectedcredit lossmodel. IFRS9alsoamendsotherstandardsdealingwithfinancialinstrumentssuchasIFRS7,FinancialInstruments:Disclosures.

TheCompanyadoptedthestandardeffectiveApril1,2018,resultinginnosignificantadjustmenttoretainedearningsandhashadnomaterialeffectontheInterimFinancialStatements.

TheCompanyassessedwhichbusinessmodelsapplytothefinancialassetsheldandhasclassifieditsfinancialinstrumentsintotheappropriateIFRS9categories.Thesereclassificationsdidnothaveanimpactonthemeasurementoffinancialassetsandliabilities.

The following table summarizes the original classification under IAS 39 and the new classification under IFRS 9 for theCompany’sfinancialassetsandfinancialliabilities.AdoptionofthenewclassificationrequirementsunderIFRS9didnotresultinsignificantchangesinthemeasurementoffinancialassetsandfinancialliabilities.

Asset/Liability OriginalclassificationunderIAS39 NewclassificationunderIFRS9Cash Loansandotherreceivables AmortizedcostTradereceivables Loansandotherreceivables AmortizedcostAccountspayableandaccruedliabilities Otherliabilities AmortizedcostRevolvingfacility Otherliabilities AmortizedcostTermloan Otherliabilities AmortizedcostDerivative,notinahedgingrelationship Fairvaluethroughprofitorloss Fairvaluethroughprofitorloss

Reclassificationoffinancialassetsisrequirediftheobjectiveofthebusinessmodelinwhichtheyareheldchangesafterinitialrecognitionandifthechangeissignificanttotheentity’soperations.Noreclassificationoffinancialliabilitiesispermitted.

UpontransitiontheCompany’sderivativesdesignatedashedgescontinuetomeetthehedgingcriteria,thereforethefairvaluesflowthroughothercomprehensiveincomeunderbothIAS39andIFRS9.



Application of the expected credit loss model for trade accounts receivable did not result in any significant changes in theCompany’s impairment allowance, with expected credit losses to be measured over the life of the asset, typically the annualwholesalesalescycle.

Share-basedpaymentEffective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2018, the IASBissuedanamendment to IFRS2,Share-basedPayment , clarifyingtheaccountingfor certain typesof share-basedpaymenttransactions. The Company adopted the standard effective April 1, 2018, with no material effect on the Interim FinancialStatements.

Standardsissuedbutnotyeteffective

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 all of the pronouncements will beadopted in the Company’s accounting policy for the first period beginning after the effective date of the pronouncement.Informationonnewstandards,amendments,andinterpretationsisprovidedbelow.

In January 2016, the IASB issued IFRS 16,Leases (“IFRS 16”), replacing IAS 17, Leasesand related interpretations. Thestandard provides a new framework for lessee accounting that requires substantially all assets obtained through operatingleasestobecapitalizedandarelatedliabilitytoberecorded.Thenewstandardseekstoprovideamoreaccuratepictureofacompany’s leased assets and related liabilities and create greater comparability between companies who lease assets andthosewhopurchaseassets.IFRS16becomeseffectiveforannualperiodsbeginningonorafterJanuary1,2019,andistobeapplied retrospectively. Early adoption is permitted if IFRS 15 has been adopted. The Company is currently assessing theimpactofthenewstandardonitsconsolidatedfinancialstatements.

Note3.Segmentinformation

The Company has two reportable operating segments: Wholesale and Direct-to-Consumer. The Company measures eachreportableoperatingsegment’sperformancebasedonrevenueandsegmentoperatingincome,whichistheprofitmetricutilizedby the Company's chief operating decision maker, who is the President and Chief Executive Officer, for assessing theperformanceof operatingsegments. Neither reportableoperatingsegment is reliant onanysingleexternal customer. Selling,generalandadministrativeexpensesnotdirectlyassociatedwiththeWholesaleorDirect-to-Consumersegments(unallocated)relate to the cost of marketing expenditures to build brand awareness across all segments, corporate costs in support ofmanufacturingoperations,othercorporatecostsandforeignexchangegainsandlossesnotspecificallyassociatedwithsegmentoperations.



ForthethreemonthsendedJune30,2018

WholesaleDirect-to-Consumer Unallocated Total

$ $ $ $Revenue 21.5 23.2 — 44.7Costofsales 10.6 5.5 — 16.1Grossprofit 10.9 17.7 — 28.6Selling,generalandadministrativeexpenses 8.0 11.2 25.9 45.1Depreciationandamortization — — 3.4 3.4Operatingincome(loss) 2.9 6.5 (29.3) (19.9)Netinterestandotherfinancecosts 3.1Lossbeforeincometaxes (23.0)


WholesaleDirect-to-Consumer Unallocated Total

$ $ $ $Revenue 19.9 8.3 — 28.2Costofsales 12.9 2.1 — 15.0Grossprofit 7.0 6.2 — 13.2Selling,generalandadministrativeexpenses 5.9 6.5 13.4 25.8Depreciationandamortization — — 2.2 2.2Operatingincome(loss) 1.1 (0.3) (15.6) (14.8)Netinterestandotherfinancecosts 3.1Lossbeforeincometaxes (17.9)

TheCompanydoesnotreporttotalassetsortotalliabilitiesbasedonitsoperatingsegments.

Geographicinformation

TheCompanydeterminesthegeographiclocationofrevenuebasedonthelocationofitscustomers.

ForthethreemonthsendedJune30Revenuebygeography: 2018 2017 $ $Canada 20.8 10.4UnitedStates 11.4 6.0RestofWorld 12.5 11.8 44.7 28.2



Note4.EarningspershareBasicearningspershareamountsarecalculatedbydividingnetincomefortheperiodattributabletoordinaryequityholdersbytheweightedaveragenumberofordinarysharesoutstandingduringtheperiod.

Diluted earnings per share amounts are calculated by dividing the net income attributable to ordinary equity holders by theweighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinaryshares,if any,thatwouldbeissuedonexerciseofstockoptions.Certainperformance-vestedexiteventoptionsissuedunderthe Company's Legacy Plan (note 11 ) become exercisable into subordinate voting shares upon the closing of a qualifyingliquidityeventorsaleofshares.Suchinstrumentsarenotconsidereddilutiveuntiltheoccurrenceoftheeventthatwouldresultinexercise,andareexcludedfromthedeterminationofdilutedearningspersharepriortotheoccurrenceofanexitevent.Thecompletion of the public share offering on March 21, 2017 and the secondary offering on July 5, 2017 each represent exitevents, and performance-vested exit event options that became exercisable on each date are included in the calculation ofdiluted earnings per share fromthe date of the exit event that satisfies the contingent performance conditions. As of July 5,2017,allexiteventconditionshavebeenmet,andnooutstandingoptionsaresubjecttoexiteventconditions.

Subordinatevotingsharesissuableonexerciseofstockoptionsarenottreatedasdilutiveifincludingthemwoulddecreasetheloss per share. Accordingly,3,079,703potentially dilutive shares have beenexcludedfromthe calculation of diluted loss pershareinthethreemonthsendedJune30,2018(2017-3,549,546shares).

ThreemonthsendedJune30

2018 2017$ $

Netloss (18.7) (12.1)Weightedaveragenumberofmultipleandsubordinatevotingsharesoutstanding 108,660,494 106,500,498Earnings(loss)pershare

Basicanddiluted (0.17) (0.11)

Note5.Tradereceivables

June30 June30 March31 2018 2017 2018 $ $ $Tradeaccountsreceivable 12.6 9.4 9.7Creditcardreceivables 0.7 0.6 3.0 13.3 10.0 12.7Less:expectedcreditlossandsalesallowances (0.9) (1.5) (0.8)Tradereceivables,net 12.4 8.5 11.9



Theagingoftradereceivablesisasfollows:

Total Pastdue Current <30days 31-60days >60days $ $ $ $ $

Tradeaccountsreceivable 12.6 9.8 1.3 — 1.5Creditcardreceivables 0.7 0.7 — — —June30,2018 13.3 10.5 1.3 — 1.5

Tradeaccountsreceivable 9.4 8.2 — — 1.2Creditcardreceivables 0.6 0.6 — — —June30,2017 10.0 8.8 — — 1.2

Tradeaccountsreceivable 9.7 4.3 2.8 1.0 1.6Creditcardreceivables 3.0 3.0 — — —March31,2018 12.7 7.3 2.8 1.0 1.6

TheCompanyhasenteredintoanagreementwithathirdpartywhohasinsuredtheriskoflossforupto90%oftradeaccountsreceivablesfromcertaindesignatedcustomersbasedonatotaldeductibleof$50.0thousand,toamaximumof$30.0peryear.AsatJune30,2018,accountsreceivabletotalingapproximately$12.3(June30,2017-$8.1,March31,2018-$8.1),wereinsuredunder this agreement, representing89.9%of tradeaccounts receivable ( June30, 2017-85.8%,March31, 2018-82.8%).

Note6.Inventories

June30 June30 March31 2018 2017 2018 $ $ $Rawmaterials 43.3 34.2 42.5Work-in-process 8.8 4.8 8.7Finishedgoods 187.4 138.0 114.2Totalinventoriesatthelowerofcostandnetrealizablevalue 239.5 177.0 165.4

Inventoriesarecarriedatthelowerofcostandnetrealizablevalue;inestimatingnetrealizablevalue,theCompanyestimatesobsolescenceandproductloss(“shrinkage”)incurredsincethelastinventorycount,basedonhistoricalexperience.IncludedininventoryasatJune30,2018areprovisionsforobsolescenceandinventoryshrinkageintheamountof$14.1(June30,2017-$5.9,March31,2018-$13.4).



Amountschargedtocostofsalescomprisethefollowing:

ForthethreemonthsendedJune30 2018 2017 $ $Costofgoodsmanufactured 15.1 14.1Depreciationandamortization 1.0 0.9 16.1 15.0

Note7.AccountspayableandaccruedliabilitiesAccountspayableandaccruedliabilitiesconsistofthefollowing:

June30 June30 March31 2018 2017 2018 $ $ $Tradepayables 36.8 18.7 28.0Accruedliabilities 26.1 16.7 46.0Employeebenefits 9.1 7.1 17.5Otherpayables 18.0 4.9 18.1Accountspayableandaccruedliabilities 90.0 47.4 109.6

Note8.ProvisionsProvisionsconsistprimarilyofamountsrecordedwithrespecttocustomerwarrantyobligations,terminationsofsalesagentsanddistributors,salesreturns,andassetretirementobligations.

Theprovisionforwarrantyclaimsrepresentsthepresentvalueofmanagement'sbestestimateofthefutureoutflowofeconomicresourcesthatwillberequiredundertheCompany'sobligationsforwarrantiesundersaleofgoods,whichmayincluderepairorreplacementofpreviouslysoldproducts.Theestimatehasbeenmadeonthebasisofhistoricalwarrantytrendsandmayvaryasaresultofnewmaterials,alteredmanufacturingprocessesorothereventsaffectingproductqualityandproduction.

The sales contract provision relates to management’s estimated cost of the departure of certain third-party dealers anddistributors.

SalesreturnsrelateprimarilytogoodssoldthroughtheDirect-to-Consumersaleschannelwhichhavealimitedrightofreturn,typicallywithin30days.



WarrantySales

ContractsSales

Returns Other Total $ $ $ $ $BalanceasatMarch31,2018 9.3 3.0 3.3 1.5 17.1Additionalprovisionsrecognized 0.4 — 0.2 — 0.6Reductionsresultingfromsettlement (1.0) — (0.7) — (1.7)Releaseofprovisions-Wholesale — — (0.9) — (0.9)Releaseofprovisions-Direct-to-Consumer — — (0.3) — (0.3)BalanceasatJune30,2018 8.7 3.0 1.6 1.5 14.8

BalanceasatMarch31,2017 8.1 3.0 3.4 1.1 15.6Additionalprovisionsrecognized 0.2 — 0.3 0.2 0.7Reductionsresultingfromsettlement (0.7) — (0.4) — (1.1)Releaseofprovisions-Wholesale — — (0.7) — (0.7)Releaseofprovisions-Direct-to-Consumer — — (0.4) — (0.4)BalanceasatJune30,2017 7.6 3.0 2.2 1.3 14.1

Provisionsareclassifiedascurrentandnon-currentliabilitiesbasedonmanagement'sexpectationofthetimingofsettlement,asfollows:

June30 June30 March31 2018 2017 2018 $ $ $Currentprovisions 4.3 4.7 6.3Non-currentprovisions 10.5 9.4 10.8 14.8 14.1 17.1

Note9.Long-termdebtRevolvingfacility

TheCompanyhasanagreementwithasyndicateoflendersforaseniorsecuredasset-basedrevolvingfacilityintheamountof$200.0 with an increase in commitments to $250.0 during the peak season (June 1 – November 30), a revolving creditcommitmentcomprisingaletterofcreditcommitmentintheamountof$25.0,witha$5.0sub-commitmentforlettersofcreditissuedinacurrencyotherthanCanadiandollars,U.S.DollarsorEuros,andaswinglinecommitmentfor$25.0.TherevolvingfacilitymaturesonJune3,2021.Amountsundertherevolvingfacilitycanbedrawn



inCanadiandollars,U.S.dollars,Eurosorothercurrencies.Amountsowingundertherevolvingfacilitymaybeborrowed,repaidandre-borrowedforgeneralcorporatepurposes.

TherevolvingfacilityhasmultipleinterestratechargeoptionsthatarebasedontheCanadianprimerate,Banker'sAcceptancerate, the lenders' Alternate Base Rate, European Base Rate, LIBORrate, or EURIBORrate plus an applicable margin, withinterest payable quarterly. TheCompanyhaspledgedsubstantially all of its assets as collateral for therevolvingfacility. Therevolvingfacilitycontainsfinancialandnon-financialcovenantswhichcouldimpacttheCompany’sabilitytodrawfunds.AsatandduringthethreemonthsendedJune30,2018and2017,theCompanywasincompliancewithallcovenants.

Theamountoutstandingwithrespecttotherevolvingfacilityissummarizedasfollows:

June30 June30 March31 2018 2017 2018 $ $ $Revolvingfacility 78.6 99.3 —Lessdeferredfinancingfees 1.7 2.0 — 76.9 97.3 —

As atMarch 31, 2018 , the Company had repaid all amounts owing on the revolving facility and related deferred financingcharges in the amount of $1.7 were included in other long-term liabilities. The Company has unused borrowing capacityavailableundertherevolvingfacilityof$82.4asatJune30,2018(June30,2017-$71.7,March31,2018-$97.8).

AsatJune30,2018,theCompanyhadlettersofcreditoutstandingundertherevolvingfacilityof$0.9(June30,2017-$0.5,March31,2018-$0.6).

Termloan

The Company has a senior secured loan agreement with a syndicate of lenders that is secured on a split collateral basisalongsidetherevolvingfacility,withanaggregateprincipalamountowingof$149.5(US$113.8).ThetermloanbearsinterestatarateofLIBORplusanapplicablemarginof4.00%payablequarterlyorattheendofthethencurrentinterestperiod(whicheverisearlier)inarrears,providedthatLIBORmaynotbelessthan1.00%.ThetermloanmaturesonDecember2,2021.Amountsowingunderthetermloanmayberepaidatanytimewithoutpremiumorpenalty,butoncerepaidmaynotbereborrowed.TheCompany has pledged substantially all of its assets as collateral for the term loan. The term loan contains non-financialcovenantswhichcouldimpacttheCompany'sabilitytodrawfunds.AsatandduringthethreemonthsendedJune30,2018and2017,theCompanywasincompliancewithallcovenants.

AsthetermloanisdenominatedinU.S.dollars,theCompanyremeasurestheoutstandingbalanceplusaccruedinterestateachbalancesheetdate.



Theamountoutstandingwithrespecttothetermloanisasfollows:

June30 June30 March31 2018 2017 2018 $ $ $Termloan 149.5 147.8 146.6Lessunamortizedportionof:

Originalissuediscount 3.0 3.8 3.1Deferredfinancingfees 1.2 1.1 1.2Embeddedderivative 0.6 0.8 0.7Revaluationforinterestratemodification 4.3 5.5 4.5

140.4 136.6 137.1

TheCompanyrecognizedthefairvalueoftheembeddedderivativeliabilityrelatedtotheinterestratefloorattheinceptionofthetermloan.Therelatedderivativeliabilityisremeasuredateachreportingperiodandisincludedinotherlong-termliabilities.

OnMarch21, 2017, theCompanyprepaid$65.0(US$48.8)of theoutstandingprincipal balanceof thetermloan. After theprepayment,theapplicablemargindecreasedfrom5.00%to4.00%,whichgaverisetoadecreaseinthefairvalueofthetermloanthatisbeingamortizedovertheremainingterm.

Hedgingtransactionsontermloan

OnOctober18,2017,theCompanyenteredintoderivativetransactionstohedgeaportionofitsexposuretoforeigncurrencyexchangeriskandinterestrateriskrelatedtoitstermloanliabilitydenominatedinU.S.dollars.

The Company entered into a long-dated forward exchange contract to buy $75.0 , or $59.4 in equivalent U.S. dollars asmeasuredonthetradedate,tofixtheforeignexchangeriskontermloanborrowingsoverthetermtomaturity(December2,2021).Unrealizedgainsandlossesinthefairvalueoftheforwardcontractarerecognizedinselling,generalandadministrativeexpensesinthestatementofincome.

TheCompanyalsoenteredintoacross-currencyswapbyselling$50.0,or$40.0inequivalentU.S.dollarsfloatingratedebtbearinginterestatLIBORplus4.00%asmeasuredonthetradedate,andreceiving$50.0fixedratedebtbearinginterestatarateof5.80%.Thiscross-currencyswaphasbeendesignatedatinceptionandisaccountedforasacashflowhedge,andtotheextentthatthehedgeiseffective,unrealizedgainsandlossesareincludedinothercomprehensiveincomeuntilreclassifiedtothestatementofincomeasthehedgedinterestpaymentsandprincipalrepayments(orperiodicremeasurements)impactnetincome.

Concurrently,theCompanyenteredintoasecondcross-currencyswapbysellingthe$50.0fixedratedebtbearinginterestatarateof5.80%andreceiving$50.0,or€34.0inequivalentEuro-denominatedfixedratedebtbearinginterestatarateof3.84%.This cross-currency swap has been designated and is accounted for as a hedge of the net investment in its Europeansubsidiary. Hedges of net investments are accounted for similarly to cash flow hedges, with unrealized gains and lossesincludedinothercomprehensiveincome.Amountsincludedinothercomprehensive



incomearereclassifiedtonetincomeintheperiodwhentheforeignoperationisdisposedoforsold.

Netinterestandotherfinancecosts

Netinterestandotherfinancecostsconsistofthefollowing:

ForthethreemonthsendedJune30 2018 2017 $ $Interestexpense

Revolvingfacility 0.3 0.5Termloan 2.8 2.6

Standbyfees 0.1 —Interestexpenseandotherfinancingcosts 3.2 3.1Interestincome (0.1) — 3.1 3.1

Note10.Shareholders'equity

TheauthorizedandissuedsharecapitaloftheCompanyareasfollows:

Authorized

TheauthorizedsharecapitaloftheCompanyconsistsofanunlimitednumberofsubordinatevotingshareswithoutparvalue,anunlimitednumberof multiplevotingshareswithoutparvalue, andanunlimitednumberof preferredshareswithout parvalue,issuableinseries.

Issued

Multiplevotingshares- Holdersofthemultiplevotingsharesareentitledto10votespermultiplevotingshare.Multiplevotingsharesareconvertibleatanytimeattheoptionoftheholderintoonesubordinatevotingshare.Themultiplevotingshareswillautomaticallybeconvertedintosubordinatevotingshareswhentheyceasetobeownedbyoneoftheprincipalshareholders.Inaddition,themultiplevotingsharesofeitheroftheprincipalshareholderswillautomaticallybeconvertedtosubordinatevotingsharesatsuchtimeasthebeneficialownershipofthatshareholderfallsbelow15%oftheoutstandingsubordinatevotingsharesandmultiplevotingsharesoutstanding,oradditionally,inthecaseofDTR,whenthePresidentandChiefExecutiveOfficernolongerservesasadirectoroftheCompanyorinaseniormanagementposition.

Subordinatevotingshares-Holdersofthesubordinatevotingsharesareentitledtoonevotepersubordinatevotingshare.

The rights of the subordinate voting shares and the multiple voting shares are substantially identical, except for voting andconversion.Subjecttothepriorrightsofanypreferredshares,theholdersofsubordinateandmultiplevotingsharesparticipateequallyinanydividendsdeclared,andshareequallyinanydistributionofassetsonliquidation,dissolution,orwindingup.



Secondaryoffering

OnJune21,2018,theCompanycompletedasecondaryofferingof10,000,000subordinatevotingsharessoldbythePrincipalShareholdersandcertainmembersofmanagement.TheCompanyreceivednoproceedsfromthesaleofshares.

Inconnectionwiththesecondaryoffering:

a) ThePrincipalShareholdersconverted9,900,000multiplevotingsharesintosubordinatevotingshares,whichwerethensoldtothepublic.

b) Onememberofmanagementexercisedstockoptionstopurchase100,000subordinatevotingshares,whichwerethensoldtothepublic.

c) TheCompanyincurredtransactioncostsforthesecondaryofferingintheamountof$1.2inthethreemonthsendedJune30,2018thatareincludedinselling,generalandadministrativeexpenses.

ThetransactionsaffectingtheissuedandoutstandingsharecapitaloftheCompanyaredescribedbelow:

Multiplevotingshares Subordinatevotingshares Total Number $ Number $ Number $Balance,asatMarch31,2018 70,894,076 1.9 37,497,549 104.2 108,391,625 106.1Convertmultiplevotingsharestosubordinatevotingshares (9,900,000) (0.3) 9,900,000 0.3 — —Exerciseofstockoptions — — 631,511 1.4 631,511 1.4Balance,asatJune30,2018 60,994,076 1.6 48,029,060 105.9 109,023,136 107.5

Multiplevotingshares Subordinatevotingshares Total Number $ Number $ Number $Balance,asatMarch31,2017 83,308,154 2.2 23,088,883 101.1 106,397,037 103.3Convertmultiplevotingsharestosubordinatevotingshares (2,100,754) (0.1) 2,100,754 0.1 — —Exerciseofstockoptions — — 367,574 0.5 367,574 0.5Balance,asatJune30,2017 81,207,400 2.1 25,557,211 101.7 106,764,611 103.8

Note11.Share-basedpaymentsTheCompanyhasissuedstockoptionstopurchasesubordinatevotingsharesunderitsincentiveplans,priortothepublicshareofferingonMarch21,2017,theLegacyPlan,andsubsequently,theOmnibusPlan.Alloptionsareissuedatanexercisepricethatisnotlessthanmarketvalueatthetimeofgrantandexpiretenyearsafterthegrantdate.

LegacyPlan

Under the terms of the Legacy Plan, options were granted to certain executives of the Company which are exercisable topurchasesubordinatevotingshares.Theoptionsvestcontingentuponmeetingtheservice,performancegoalsandexiteventconditionsoftheLegacyPlan.



a) Service-vestedoptions

Service-vestedoptionsaresubjecttotheexecutive’scontinuingemploymentandgenerallyarescheduledtovest40%onthesecondanniversaryofthedateofgrant,20%onthethirdanniversary,20%onthefourthanniversaryand20%onthefifthanniversary.

b) Performance-vestedandexiteventoptions

Performance-vested options that are tied to an exit event become eligible to vest pro rata on the same schedule asservice-vested options, but do not vest until the exit event has occurred. An exit event is triggered based on a targetrealized rate of return on invested capital. Other performance-vested options vest based on measurable performancetargets that do not involve an exit event. Performance-vested options are subject to the executive’s continuedemployment.

Oneachvestingdate,service-vestedoptionsvest,andperformance-vestedexiteventoptionsbecomeeligibletovestupontheoccurrenceofanexitevent.ThecompletionofthepublicshareofferingonMarch21,2017andthesecondaryofferingonJuly5,2017eachrepresentexit eventssuchthatoptionsthatwereeligibletovestbecamevested.AsofJuly5,2017,all exit eventconditionshavebeenmet,andnooutstandingoptionsaresubjecttoexiteventconditions.NooptionswillbeissuedundertheLegacyPlansubsequenttothepublicshareoffering.

OmnibusPlan

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 theOmnibusPlan,25%oneachanniversaryofthedateofgrant.

Stockoptiontransactionsareasfollows:

ForthethreemonthsendedJune30 2018 2017

Weightedaverage

exercisepriceNumberof

shares

Weightedaverage

exercisepriceNumberof

sharesOptionsoutstanding,beginningofperiod $ 4.71 3,647,571 $ 1.63 5,810,777Optionsgrantedtopurchaseshares $ 83.53 227,599 $ 30.73 226,811Optionsexercised $ 1.28 (631,511) $ 0.40 (367,574)Optionscancelled $ 30.73 (2,405) $ 2.02 (279,365)Optionsoutstanding,endofperiod $ 10.89 3,241,254 $ 2.91 5,390,649

Subordinatevotingshares,toamaximumof10,417,926shares,havebeenreservedforissuanceunderequityincentiveplanstoselectemployeesoftheCompany,withvestingcontingentuponmeetingtheservice,performancegoalsandotherconditionsofthePlan.



ThefollowingtablesummarizesinformationaboutstockoptionsoutstandingandexercisableatJune30,2018:

OptionsOutstanding OptionsExercisable

Exerciseprice Number

Weightedaverage

remaininglifeinyears Number

Weightedaverage

remaininglifeinyears

$ 0.02 854,042 5.8 466,007 5.8$ 0.25 119,322 6.2 30,432 6.2$ 1.79 824,854 6.8 335,955 6.8$ 4.62 745,275 7.7 260,885 7.7$ 8.94 133,332 8.6 — —$ 23.64 58,542 9.1 — —$ 30.73 210,748 8.9 52,908 8.9$ 31.79 55,412 9.4 — —$ 41.50 12,128 9.6 — —$ 83.53 227,599 10.0 — — 3,241,254 7.2 1,146,187 6.7 Accountingforshare-basedawards

InthethreemonthsendedJune30,2018,theCompanyrecorded$0.4ascontributedsurplusandcompensationexpenseforthe vesting of stock options ( 2017 - $ 0.2 ). Share-based compensation expense is included in selling, general andadministrativeexpenses.

TheassumptionsusedtomeasurethefairvalueofoptionsgrantedundertheBlack-Scholesoptionpricingmodelatthegrantdatewereasfollows:

ForthethreemonthsendedJune30 2018 2017Weightedaveragestockpricevaluation $ 83.53 $ 30.73Weightedaverageexerciseprice $ 83.53 $ 30.73Risk-freeinterestrate 1.83% 0.65%to0.96%Expectedlifeinyears 5 10Expecteddividendyield —% —%Volatility 40% 50%Weightedaveragefairvalueofoptionsissued $ 33.20 $ 9.37



Note12.LeasesRentexpensecomprisesthefollowing:

ForthethreemonthsendedJune30 2018 2017 $ $Leaseexpense 4.9 3.7Contingentrent 0.3 — 5.2 3.7

Deferredrentintheamountof$5.0(June30,2017-$1.7,March31,2018-$4.3)isincludedinotherlong-termliabilities.

Note13.RelatedpartytransactionsTheCompanyentersintotransactionsfromtimetotimewithitsprincipalshareholdersandorganizationsaffiliatedwithmembersof its Board of Directors by incurring expenses for business services. During the three months ended June 30, 2018 , theCompanyincurredexpenseswithrelatedpartiesoflessthan$0.1millionintotal(2017-$0.1)tocompaniesrelatedtocertainshareholders. Balancesowingto relatedparties as at the three months endedJune30, 2018and2017werelessthan$0.1million.

Note14.FinancialinstrumentsandfairvalueManagementassessedthatthefairvaluesofcash,tradereceivables,andaccountspayableandaccruedliabilitiesapproximatetheircarryingamountslargelyduetotheshort-termmaturitiesoftheseinstruments.

AsatJune30,2018,thefairvalueoftherevolvingfacilityisequaltotheamountowingof$78.6(June30,2017-$99.3,March31,2018-$nil).Thefairvalueofthetermloanisequaltotheamountowingof$149.5(June30,2017-$147.8,March31,2018-$146.6).

DerivativeFinancialInstruments

Foreignexchangeriskinoperatingcashflows

TheCompany’sconsolidatedfinancialstatementsareexpressedinCanadiandollars,butasubstantialportionoftheCompany’srevenues,purchasesandexpensesaredenominatedinothercurrencies,principallyU.S.dollars,Euros,PoundsSterling,andSwiss Francs. The Company has entered into forward foreign exchange contracts to reduce the foreign exchange riskassociatedwithrevenues,purchasesandexpensesdenominatedinthesecurrencies.Beginninginfiscal2017,certainforwardforeign exchange contracts were designated at inception and accounted for as cash flow hedges with respect to expectedactivityinthe2018fiscalyear.TheoperatinghedgeprogramforthefiscalyearendingMarch31,2019wasinitiatedduringthefourthquarterofthe2018fiscalyear.

During the three months ended June 30, 2018 , an unrealized loss in the fair value of derivatives designated as cash flowhedgesintheamountsof$1.2(netoftaxrecoveryof$0.4)havebeenrecordedinothercomprehensiveincome(threemonthsendedJune30,2017-anunrealizedlossof$0.2netoftaxrecoveryof$0.1).DuringthethreemonthsendedJune30,2018,anunrealizedgainof$2.2(threemonthsendedJune30,2017-$0.6)onforwardexchangecontractsthatare



nottreatedashedgeshasbeenrecognizedinselling,generalandadministrativeexpensesinthestatementofincome.Alossof$0.1wasreclassifiedfromothercomprehensiveincometoselling,generalandadministrativeexpenses( threemonthsendedJune30,2017-againoflessthan$0.1).

ForeigncurrencyforwardexchangecontractsoutstandingasatJune30,2018relatedtooperatingcashflowsare:

(inmillions) ContractAmount PrimaryCurrencyForwardexchangecontracttopurchasecurrency CHF 4.1 SwissFrancs

US$ 69.1 U.S.dollars € 21.6 Euros £ 0.8 PoundsSterling

Forwardexchangecontracttosellcurrency US$ 128.7 U.S.dollars € 41.3 Euros £ 28.3 PoundsSterling

Revenuesandexpensesof all foreignoperationsaretranslatedintoCanadiandollarsat theforeigncurrencyexchangeratesthatapproximatetheratesineffectatthedateswhensuchitemsarerecognized.AppreciatingforeigncurrenciesrelativetotheCanadiandollar,totheextenttheyarenothedged,willpositivelyimpactoperatingincomeandnetincome,whiledepreciatingforeigncurrenciesrelativetotheCanadiandollarwillhavetheoppositeimpact.

Foreignexchangeriskonlong-termdebt

OnOctober18,2017,theCompanyenteredintoderivativetransactionstohedgeaportionofitsexposuretoforeigncurrencyexchangeriskrelatedtoitstermloanliabilitydenominatedinU.S.dollars(note9).

DuringthethreemonthsendedJune30,2018,anunrealizedlossof$1.4inthefairvalueofthelong-datedforwardexchangecontractrelatedtoaportionofthetermloanbalancehasbeenrecognizedinselling,generalandadministrativeexpensesinthestatementofincome.Anunrealizedlossof$1.1(netoftaxrecoveryof$0.2)onthecross-currencyswapthatisdesignatedasacashflowhedgehasbeenrecordedinothercomprehensiveincome.Anunrealizedlossof$1.2(netoftaxexpenseof$0.2)wasreclassifiedfromothercomprehensiveincometoselling,generalandadministrativeexpenses.

DuringthethreemonthsendedJune30,2018,theCompanyhasrecognizedinothercomprehensiveincomeanunrealizedgainof$1.5 (net of tax expense of$0.5 ) in the fair value of the Euro-denominated cross-currency swap that is designated as ahedgeoftheCompany'snetinvestmentinitsEuropeansubsidiary.



FairValue

The following table presents the fair values and fair value hierarchy of the Company’s financial instruments and excludesfinancialinstrumentscarriedatamortizedcostthatareshort-terminnature:

June30,2018

Level1 Level2 Level3Carrying

value FairValue $ $ $ $ $Financialassets

Cash 14.6 — — 14.6 14.6Derivativesincludedinothercurrentassets — 7.2 — 7.2 7.2Derivativesincludedinotherlong-termassets — 4.5 — 4.5 4.5Financialliabilities

Derivativesincludedinaccountspayableandaccruedliabilities — 7.6 — 7.6 7.6Derivativesincludedinotherlong-termliabilities — 4.3 — 4.3 4.3Revolvingfacility — — 76.9 76.9 78.6Termloan — — 140.4 140.4 149.5

June30,2017



Cash 13.1 — — 13.1 13.1Derivativesincludedinothercurrentassets — 1.2 — 1.2 1.2Financialliabilities

Derivativesincludedinaccountspayableandaccruedliabilities — 2.4 — 2.4 2.4Derivativesincludedinotherlong-termliabilities — 0.4 — 0.4 0.4Revolvingfacility — — 97.3 97.3 99.3Termloan — — 136.6 136.6 147.8



March31,2018



Cash 95.3 — — 95.3 95.3Derivativesincludedinothercurrentassets — 2.8 — 2.8 2.8Derivativesincludedinotherlong-termassets — 2.1 — 2.1 2.1Financialliabilities

Derivativesincludedinaccountspayableandaccruedliabilities — 4.2 — 4.2 4.2Derivativesincludedinotherlong-termliabilities — 6.1 — 6.1 6.1Revolvingfacility — — — — —Termloan — — 137.1 137.1 146.6

Therewerenotransfersbetweenthelevelsofthefairvaluehierarchy.



Note15.CommitmentsandcontingenciesThefollowingtablesummarizestheamountofcontractualundiscountedfuturecashflowrequirementsasatJune30,2018:

ContractualobligationsQ2toQ4

2019 FY2020 FY2021 FY2022 FY2023 FY2024 Thereafter Total $ $ $ $ $ $ $ $Accountspayableandaccruedliabilities 90.0 — — — — — — 90.0Revolvingfacility — — — 78.6 — — — 78.6Termloan — — — 149.5 — — — 149.5Interestcommitmentsrelatingtolong-termdebt(1) 8.7 11.5 11.5 6.5 — — — 38.2Foreignexchangeforwardcontracts 0.4 — — — — — — 0.4Operatingleases 13.7 18.9 19.0 19.0 19.1 17.9 57.4 165.0Pensionobligation — — — — — — 1.3 1.3

(1) Interestcommitmentsarecalculatedbasedontheloanbalance,andtheinterestratepayableontherevolvingfacilityandthetermloanof3.08%and6.09%,respectively,asatJune30,2018.

Note16.SelectedcashflowinformationCashandcashequivalents

Cashandcashequivalentsconsistofthefollowing:

June30 June30 March31 2018 2017 2018 $ $ $Cash 14.6 13.1 86.3Cashequivalents — — 9.0 14.6 13.1 95.3



Changesinnon-cashoperatingitems

ForthethreemonthsendedJune30 2018 2017 $ $Tradereceivables (0.8) 0.2Inventories (74.0) (51.5)Othercurrentassets (4.6) 3.6Accountspayableandaccruedliabilities (30.4) (12.0)Provisions (2.4) (1.5)Deferredrent 0.6 (0.5)Other — 0.4Changeinnon-cashoperatingitems (111.6) (61.3)

Changesinliabilitiesandequityarisingfromfinancingactivities

Revolving

facilityTermloan Share

capital $ $ $BalanceasatMarch31,2018(1) (1.7) 137.1 106.1Cashflows:

Borrowingsonrevolvingfacility 78.5 — —Exerciseofstockoptions — — 0.8

Non-cashitems:

Amortizationofdebtcosts

Discount — 0.2 —Embeddedderivative — — —Interestratemodification — 0.3 —Deferredfinancingcosts 0.1 0.1 —Unrealizedforeignexchangeloss — 2.7 —Contributedsurplusonexerciseofstockoptions — — 0.6

BalanceasatJune30,2018 76.9 140.4 107.5(1)Deferredfinancingchargesontherevolvingfacilityareincludedinotherlong-termliabilities.



Revolving

facilityTermloan Share

capital $ $ $BalanceasatMarch31,2017 6.6 139.4 103.3Cashflows:

Borrowingsonrevolvingfacility 90.5 — —Exerciseofstockoptions — — 0.1

Non-cashitems:

Amortizationofdebtcosts

Discount — 0.2 —Embeddedderivative — — —Interestratemodification — 0.3 —Deferredfinancingcosts 0.2 0.1 —Unrealizedforeignexchange(gain)/loss — (3.4) —Contributedsurplusonexerciseofstockoptions — — 0.4

BalanceasatJune31,2017 97.3 136.6 103.8


CANADAGOOSEHOLDINGSINC.MANAGEMENT’SDISCUSSIONANDANALYSISOFFINANCIALCONDITIONANDRESULTSOFOPERATIONS


The following Management’s Discussion and Analysis (“MD&A”) for Canada Goose Holdings Inc. (“us,” “we,” “our,” “CanadaGoose”orthe“Company”)isdatedAugust8,2018andprovidesinformationconcerningourfinancial conditionandresultsofoperations for the three months ended June 30, 2018 . You should read this MD&Atogether with our unaudited condensedconsolidatedinterimfinancialstatementsasatandforthethreemonthsendedJune30,2018(“InterimFinancialStatements”),and our audited consolidated financial statements and the related notes for the fiscal year ended March 31, 2018 (“AnnualFinancialStatements”).AdditionalinformationaboutCanadaGooseisavailableonourwebsiteatwww.canadagoose.com,onthe SEDAR website at www.sedar.com, and on the EDGAR section of the U.S. Securities and Exchange Commission (the“SEC”) website at www.sec.gov, including our Annual Report on Form 20-F for the year ended March 31, 2018 (“AnnualReport”).

CAUTIONARYNOTEREGARDINGFORWARD‑‑LOOKINGSTATEMENTS

This MD&A contains forward-looking statements. These statements are neither historical facts nor assurances of futureperformance.Instead,theyarebasedonourcurrentbeliefs,expectationsandassumptionsregardingthefutureofourbusiness,future plans and strategies, and other future conditions. Forward-looking statements can be identified by words such as“anticipate,” “believe,” “envision,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,”“would,”“could,”“should,”“continue,”“contemplate”andothersimilarexpressions,althoughnotall forward-lookingstatementscontaintheseidentifyingwords.Theseforward-lookingstatementsincludeallmattersthatarenothistoricalfacts.TheyappearinmanyplacesthroughoutthisMD&Aandincludestatementsregardingourintentions,beliefsorcurrentexpectationsconcerning,amongotherthings,ourresultsofoperations,financialcondition,liquidity,businessprospects,growth,strategies,expectationsregardingindustrytrendsandthesizeandgrowthratesofaddressablemarkets,ourbusinessplanandourgrowthstrategies,includingplansforexpansiontonewmarketsandnewproducts,expectationsforseasonaltrends,andtheindustryinwhichweoperate.

Certainassumptionsmadeinpreparingtheforward-lookingstatementscontainedinthisMD&Ainclude:

• ourabilitytoimplementourgrowthstrategies;

• ourabilitytomaintainstrongbusinessrelationshipswithourcustomers,suppliers,wholesalersanddistributors;

• ourabilitytokeeppacewithchangingconsumerpreferences;

• ourabilitytoprotectourintellectualproperty;and

• theabsenceofmaterialadversechangesinourindustryortheglobaleconomy.


By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend oncircumstancesthatmayormaynotoccurinthefuture.Webelievethattheserisksanduncertaintiesinclude,butarenotlimitedto,thosedescribedinthe“RiskFactors”sectionofourAnnualReport,whichinclude,butarenotlimitedto,thefollowingrisks:

• wemaynotopenretailstoresorexpande-commerceaccessonourplannedtimelines;

• wemaybeunabletomaintainthestrengthofourbrandortoexpandourbrandtonewproductsandgeographies;

• wemaybeunabletoprotectorpreserveourbrandimageandproprietaryrights;

• wemaynotbeabletosatisfychangingconsumerpreferences;

• aneconomicdownturnmayaffectdiscretionaryconsumerspending;

• wemaynotbeabletocompeteinourmarketseffectively;

• wemaynotbeabletomanageourgrowtheffectively;

• poorperformanceduringourpeakseasonmayaffectouroperatingresultsforthefullyear;

• ourindebtednessmayadverselyaffectourfinancialcondition;

• wemaybeunabletoremediateweaknessesinourinternalcontrolsoverfinancialreportingonatimelybasis;

• ourabilitytomaintainrelationshipswithourselectnumberofsuppliers;

• ourabilitytomanageourproductdistributionthroughourretailpartnersandinternationaldistributors;

• thesuccessofourexpansionintoChinaandothernewstoreopenings;

• thesuccessofourmarketingprograms;

• ourabilitytoforecastourinventoryneeds;

• ourabilitytomanageourexposuretodatasecurityandcybersecurityevents

• theriskourbusinessisinterruptedbecauseofadisruptionatourheadquarters;and

• fluctuationsinrawmaterialcosts,interestratesandcurrencyexchangerates.

Althoughwebasetheforward-lookingstatementscontainedinthisMD&Aonassumptionsthatwebelievearereasonable,wecautionyouthatactual resultsanddevelopments(includingourresultsof operations,financial conditionandliquidity, andthedevelopmentoftheindustryinwhichweoperate)maydiffermateriallyfromthosemadeinorsuggestedbytheforward-lookingstatements contained in this MD&A. In addition, even if results and developments are consistent with the forward-lookingstatements contained in this MD&A, those results and developments may not be indicative of results or developments insubsequent periods. As a result, any or all of our forward-looking statements in this MD&A may prove to be inaccurate. Noforward-lookingstatementisaguaranteeoffutureresults. Moreover, weoperateinahighlycompetitiveandrapidlychangingenvironmentinwhichnewrisksoftenemerge.Itisnotpossibleforourmanagementtopredictallrisks,norcanweassesstheimpactof all factorsonourbusinessor theextent towhichanyfactor, or combinationof factors, maycauseactual resultstodiffermateriallyfromthosecontainedinanyforward-lookingstatementswemaymake.


YoushouldreadthisMD&Aandthedocumentsthatwereferencehereincompletelyandwiththeunderstandingthatouractualfutureresultsmaybemateriallydifferentfromwhatweexpect.Theforward-lookingstatementscontainedhereinaremadeasofthedateofthisMD&A,andwedonotassumeanyobligationtoupdateanyforward-lookingstatementsexceptasrequiredbyapplicablelaws.

BASISOFPRESENTATION

The Interim Financial Statements are prepared in accordance with International Financial Reporting Standards (“IFRS”),specificallyInternationalAccountingStandard(“IAS”)34,InterimFinancialReporting,asissuedbytheInternationalAccountingStandardsBoard(“IASB”),andarepresentedinthousandsofCanadiandollars,exceptwhereotherwiseindicated.TheInterimFinancial Statements do not include all of the information required for Annual Financial Statements and should be read inconjunctionwith theAnnual Financial Statements. Certain financial measurescontainedin this MD&Aare non-IFRSfinancialmeasuresandarediscussedfurtherunder“Non-IFRSFinancialMeasures”below.

TheInterimFinancialStatementsandtheaccompanyingnoteshavebeenpreparedusingtheaccountingpoliciesdescribedinnote2totheannualconsolidatedfinancialstatements,exceptthatcertainnewstandardsbecameeffectiveatthebeginningofthe current fiscal year. The Company has adopted IFRS15,RevenuefromContracts with CustomersandIFRS9,FinancialInstrumentseffectiveApril1,2018,whichdidnothaveamaterialeffectonthefinancialstatements.See“ChangesinAccountingPolicies”,below,foradescriptionoftheimpactfromadoptingthesenewstandards.Aspermittedbythestandards,theCompanyelectednottorestatecomparativefinancialinformation.

Allreferencesto“$”,“CAD”and“dollars”refertoCanadiandollars,“USD”and“US$”refertoU.S.dollars,“GBP”refertoBritishpoundssterling,“EUR”refertoEuros,and“CHF”refertoSwissFrancs,unlessotherwiseindicated.Certaintotals,subtotalsandpercentages throughout this MD&A may not reconcile due to rounding. This MD&A and the accompanying Interim FinancialStatementsarepresentedinmillionsofCanadiandollars.Wehaveconformedcomparativeperiodamountstothisconventionandroundedwherenecessary.

Allreferencesto“fiscal2015”aretotheCompany’sfiscalyearendedMarch31,2015;to“fiscal2016”aretotheCompany’sfiscalyearendedMarch31,2016;to“fiscal2017”aretotheCompany’sfiscalyearendedMarch31,2017;to“fiscal2018”aretotheCompany’sfiscalyearendedMarch31,2018;to“fiscal2019”aretotheCompany’sfiscalyearendingMarch31,2019andto“fiscal2020”aretotheCompany’sfiscalyearendingMarch31,2020.


SUMMARYOFFINANCIALPERFORMANCE

ThefollowingtablesummarizesresultsofoperationsforthethreemonthsendedJune30,2018and2017andexpressesthepercentagerelationshiptorevenuesofcertainfinancial statementcaptions. All percentagesshowninthetablebelowandthediscussionthatfollowshavebeencalculatedusingroundednumbers.See“ResultsofOperations”foradditionaldetails.

ThreemonthsendedCAD$millions(exceptpersharedata) June30,2018 June30,2017 %ChangeStatementofOperationsData:

Revenue 44.7 28.2 58.5%Grossprofit 28.6 13.2 116.7%Grossmargin 64.0 % 46.8 % 1,720bpsOperatingloss (19.9) (14.8) 34.5%Netloss (18.7) (12.1) 54.5%Earnings(loss)pershare

Basicanddiluted $ (0.17) $ (0.11) 54.5%Otherdata:(1)

EBITDA (15.5) (11.7) 32.5%AdjustedEBITDA (13.5) (13.6) (0.7)%AdjustedEBITDAmargin (30.2) % (48.2) % 1,800bpsAdjustednetloss (17.1) (13.3) 28.6%Adjustednetlossperbasicanddilutedshare $ (0.16) $ (0.12) 33.3%

(1)EBITDA,adjustedEBITDA,adjustedEBITDAmargin,adjustednetloss,andadjustednetlossperbasicanddilutedsharearenon-IFRSfinancialmeasures.See“Non-IFRSFinancialMeasures”foradescriptionofthesemeasuresandareconciliationtothenearestIFRSmeasure.

Segments

Wereportourresultsintwosegmentswhicharealignedwithoursaleschannels:WholesaleandDirect-to-Consumer(“DTC”).Wemeasureeachreportableoperatingsegment’sperformancebasedonrevenueandsegmentoperatingincome.Throughourwholesalesegmentweselltoretailpartnersanddistributorsin39countries.OurDTCsegmentincludesonlinesalesthroughoure-commercesitestocustomersinAustria,Belgium,Canada,China,France,Germany,Ireland,Luxembourg,theNetherlands,Sweden, the U.K. and the U.S. and sales to customers of our Company-owned retail stores in Boston, Calgary, Chicago,London,NewYorkCityandToronto.

OurwholesalesegmentandDTCsegmentrepresented48.1%and51.9%ofourtotalrevenue,respectively,inthefirstquarteroffiscal2019and56.9%and43.1%ofourtotalrevenue,respectively,infiscal2018.Forfiscal2017,thewholesalesegmentandDTCsegmentcontributed71.5%and28.5%ofthetotalrevenue,respectively,andforfiscal2016,thewholesalesegmentandDTCsegmentcontributed88.6%and11.4%, respectively. Theoverall shift of salesfromthewholesalesegmenttotheDTCsegmentcontinuedinthefirstquarteroffiscal2019,andisexpectedtocontinueasweopenmoreretailstoresandexpande-commerceaccessinfutureyears.


FactorsAffectingourPerformance

Webelievethatourperformanceandfuturesuccessdependonmanyfactorsthatpresentsignificantopportunitiesforusandmayposerisksandchallenges,includingthosediscussedbelow.

• Marketdevelopment.Ourmarketdevelopmentstrategyhasbeenakeydriverofourrecentrevenuegrowthandweplan to continue to execute our global expansion strategy. Across our various markets, we intend to continueincreasingbrandawareness,andactivatinglocal marketswhilebuildingoutcustomeraccessinourwholesaleandDTCchannels.Weexpectthatmarketingexpensestosupporttheseinitiativeswillcontinuetogrowinproportiontoanticipatedrevenuegrowth.

• Growth in our DTC Channel.We introduced our DTC channel in fiscal 2015 with the launch of our Canadian e-commercestoreandhavesinceestablishede-commercestoresintheUnitedStatesinthesecondquarteroffiscal2016,intheUnitedKingdomandFranceinthesecondquarteroffiscal2017,inIrelandinthefirstquarteroffiscal2018,andinBelgium,Luxembourg,theNetherlands,Sweden,GermanyandAustriainthesecondquarteroffiscal2018.InJanuary2018,welaunchedasmallcross-borderpilote-commercesiteinChina.Aspreviouslyannounced,weintendtoopenane-commercestoreonTMallinChinainthethirdquarteroffiscal2019.Weplantocontinuetoexpande-commerceaccessinfutureyears.

Inthethirdquarteroffiscal2017,weopenedourfirsttworetailstoresinTorontoandinNewYorkCity.Inthethirdquarter of fiscal 2018, we opened four retail stores in Chicago, London, Calgary and Boston and our distributionpartnerinJapanopenedaretail storeinTokyo.Weintendtoopenaselectnumberofadditionalretail locationsinmajor metropolitan centres and premium outdoor and lifestyle destinations where we believe they can operateprofitably.

As previously announced, store openings in fiscal 2019 are planned for Montreal, Vancouver, Short Hills in NewJersey,BeijingandHongKong.

GrowthinourDTCchannelisexpectedtoalterthecurrentseasonalconcentrationofourrevenuesincecustomerstendtopurchasegoodsinretailstoresandone-commercesitesatahigherrateinourthirdandfourthfiscalquarters,comparedtothewholesalebusiness,whereproductsaredeliveredtowholesalepartnersaheadoftheirpeaksellingseasoninthesecondandthirdquarters.

• NewProducts . WeintendtocontinuetoexpandourFall/Winter andSpringcollectionsof outerwear, knitwearandaccessoriesacrossstyles,usesandclimates.Productdesignandinnovationareacorepartofourstrategyandweintend to continue investing in the development and introduction of new products. We launched our new knitwearcollection in the second quarter of fiscal 2018, which we will continue to roll out gradually in fiscal 2019. As weintroduceadditionalproducts,weexpectthattheywill supplementtheseasonalnatureofourbusinessandexpandour addressable geographic market. We expect these products to be accretive to revenue, but may carry a lowergrossmarginperunitrelativetoourlong-standingstyleswhichareproducedinsignificantlyhighervolumes.

• Seasonality.Weexperienceseasonalfluctuationsinourrevenueandoperatingresultsandhistoricallyhaverealizedasignificantportionofourannualwholesalerevenue


duringoursecondandthirdfiscalquartersandourDTCrevenueinthethirdandfourthfiscalquarters.Inourthreemostrecentlycompletedfiscalyears,wegenerated74.2%,83.5%,and77.4%ofourconsolidatedrevenuesinthecombinedsecondandthirdfiscalquartersoffiscal2018,fiscal2017andfiscal2016,respectively.Inourwholesalechannel, wehavevisibility intoexpectedfuturerevenues, with amajority of ordersreceivedprior to theendof theprior fiscal year, enabling us to manufacture inventory to wholesale demand. That said, seasonal fluctuations inwholesaleanddistributorcustomerdemandhaveshiftedthedeliverytimingofcustomerordersbetweenquartersinprioryears,andcanbeexpectedtoaffectthequarterlypatternofwholesalerevenueinfuture.Becauseofseasonalfluctuationsinrevenueandfixedcostsassociatedwithourbusiness,particularlytheheadcountgrowthandpremisescosts associated with our expanding DTC channel, we typically experience reduced or negative net income andadjustedEBITDA(1)inthefirstandfourthquarters.WorkingcapitalrequirementstypicallyincreasethroughoutourfirstandsecondfiscalquartersasinventorybuildstosupportourpeakshippingandsellingperiodfromAugusttotheendof the calendar year. We finance these needs through a combination of cash on hand, cash from operations andborrowingsonourRevolvingFacility.Cashflowsfromoperatingactivitiesaretypicallyhighestinthethirdandfourthquarters of the fiscal year due to the peak revenue period for DTC and collection of receivables from wholesalerevenueearlierintheyear.Asaresultofourseasonality,changesthatimpactgrossmarginandadjustedEBITDAcanhaveadisproportionateimpactonthequarterlyresultswhentheyarerecordedinouroff-peakperiods.

(1)

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

measures.

• ForeignExchange.WesellasignificantportionofourproductstocustomersoutsideofCanada,whichexposesustofluctuationsinforeigncurrencyexchangerates.Infiscalyears2018,2017and2016,wegenerated53.7%,52.2%and54.6%,respectively,ofourrevenueincurrenciesotherthanCanadiandollars.OursalesoutsideofCanadaalsopresent an opportunity to strategically price our products to improve our profitability. As most of our wholesalerevenue is derived from retailer orders made prior to the beginning of the fiscal year, we have a high degree ofvisibilityintoouranticipatedfuturecashflowsfromwholesaleoperations.Inaddition,mostofourrawmaterialsaresourcedoutsideofCanada,primarilyinU.S.dollars,andselling,generalandadministrative(“SG&A”)expensesaretypically denominated in the currency of the country in which they are incurred. As part of our risk managementprogram,thisextendedvisibility allowsustoenterintoforeignexchangeforwardcontractstolockintheexchangeratesfor futureforeigncurrencytransactions, whichis intendedtoreducethevariability of our operatingcostsandfuturecashflowsdenominatedinlocalcurrencies.

Weare exposedto translationandtransactionrisks associatedwith foreigncurrencyexchangefluctuationsontheprincipalandinterestpayableonourU.S.dollardenominatedseniorsecuredasset-basedrevolvingcreditfacility(the“RevolvingFacility”)andseniorsecuredtermloanfacility(“TermLoanFacility”).OnOctober18,2017,weenteredinto foreign exchange forward and cross-currency swap contracts to hedge a portion of the exposure to foreigncurrency exchangeandinterest rate risk on the principal amount of the TermLoanFacility. See “Quantitative andQualitativeDisclosuresaboutMarketRisk-ForeignExchangeRisk”below.


TheprimaryforeigncurrencyexchangeratesthatimpactourbusinessandoperationsasatandforthethreemonthsendedJune30,2018andforthefiscalyearendedMarch31,2018aresummarizedbelow:

Foreigncurrencyexchangerate$1.00CAD Fiscal2019 AverageRate ClosingRate

Currency Q1 Q2 Q3 Q4 2019YTDJune30,2018

USD/CAD 1.2912 — — — 1.2912 1.3168EUR/CAD 1.5390 — — — 1.5390 1.5360GBP/CAD 1.7567 — — — 1.7567 1.7357CHF/CAD 1.3108 — — — 1.3108 1.3271

Foreigncurrencyexchangerate$1.00CAD Fiscal2018

AverageRateClosingRate

Currency Q1 Q2 Q3 Q4 2018YTDMarch31,

2018USD/CAD 1.3449 1.2528 1.2713 1.2647 1.2837 1.2894EUR/CAD 1.4810 1.4721 1.4971 1.5544 1.5011 1.5867GBP/CAD 1.7211 1.6396 1.6875 1.7601 1.7022 1.8106CHF/CAD 1.3663 1.3012 1.2881 1.3337 1.3226 1.3482

Source:BankofCanada


ComponentsofOurResultsofOperations

Revenue

Wholesalerevenuecomprisessalestothirdpartyresellers(whichincludesdistributorsandretailers)ofourproducts.Wholesalerevenuefromthesaleofgoods,netofanestimatedprovisionforsalesreturns,discountsandallowances,isrecognizedwhenthecontrolofthegoodshasbeentransferredtothereseller,which,dependingonthetermsoftheagreementwiththereseller,occurs when the products have been shipped to the reseller, are picked up from our third-party warehouse or arrive at thereseller’sfacilities.

DTC revenue consists of sales through our e-commerce operations and Company-owned retail stores. Revenue through e-commerce operations and retail stores is recognized upon delivery of the goods to the customer and when consideration isreceived,netofanestimatedprovisionforsalesreturns.

CostofSalesandGrossProfit

Grossprofit is our revenuelesscost of sales. Cost of sales comprisesthecost of manufacturingour products, includingrawmaterials, direct labour and overhead, plus freight, duties and non-refundable taxes incurred in delivering the goods todistributioncentresmanagedbythirdpartiesortoourretailstores.Italsoincludescostsincurredinourproduction,designandmerchandisedepartmentsaswellasinventoryprovisionsandallowancesrelatedtoobsolescenceandshrinkage.Theprimarydrivers of our cost of sales are the costs of raw materials (which are sourced in both Canadian dollars and U.S. dollars),manufacturinglabourratesintheprovincesofCanadaandtheallocationofoverhead.Grossmarginmeasuresourgrossprofitasapercentageofrevenue.

SG&AExpenses

SG&Aexpensesconsistofsellingcoststosupportourcustomerrelationshipsandtodeliverourproductstoourretailpartners,e-commerce customers and retail stores. It also includes our marketing and brand investment activities and the corporateinfrastructure required to support our ongoing operations. Foreign exchange gains and losses are recorded in SG&A andcomprisethetranslationofassetsandliabilitiesdenominatedincurrenciesotherthanthefunctionalcurrencyoftheCompanyorits subsidiaries, including cash balances, the Term Loan Facility, and a portion of our Revolving Facility, mark-to-marketadjustmentsonderivativecontracts,gainsorlossesassociatedwithourtermloanhedges,andrealizedgainsonsettlementofforeigncurrencydenominatedassetsandliabilities.

Selling costs, other than headcount-related costs, generally correlate to revenue timing and therefore experience similarseasonal trends. Asapercentageof sales, weexpect thesesellingcoststochangeasourbusinessevolves. Thischangeisexpected to be primarily driven by the growth of our DTCchannel, including the investment required to support additional e-commercesitesandretailstores.Retailstorecostsaremostlyfixedandwillbeincurredthroughouttheyear.ThegrowthofourDTCchannelisexpectedtobeaccretivetonetincomegiventhehighergrossmarginforsalesmadethroughourDTCchannelwherewearebetterabletocapturethefullretailvalueofourproducts.

Generalandadministrativeexpensesrepresentcostsincurredinourcorporateoffices,primarilyrelatedtomarketing,personnelcosts, includingsalaries, variableincentivecompensation, benefits, share-basedcompensation, technologysupport andotherprofessionalservicecosts.Wehave


investedconsiderablyinthisareatosupportthegrowingvolumeandcomplexityofourbusinessandanticipatecontinuingtodosointhefuture.

IncomeTaxes

Wearesubjecttoincometaxesinthejurisdictionsinwhichweoperateand,consequently,incometaxexpenseisafunctionoftheallocationoftaxableincomebyjurisdictionandthevariousactivitiesthatimpactthetimingoftaxableevents.TheprimaryregionsthatdeterminetheeffectivetaxrateareCanada,theU.S.,SwitzerlandandtheU.K.


RESULTSOFOPERATIONSThreemonthsendedJune30,2018comparedtothreemonthsendedJune30,2017Thefollowingtablesummarizesresultsofoperationsandexpressesthepercentagerelationshiptorevenuesofcertainfinancialstatement captions. All percentages shown in the table below and the discussion that follows have been calculated usingroundednumbers.

CAD$millions(exceptshareandpersharedata)

ThreemonthsendedJune30,2018

ThreemonthsendedJune30,2017

$Change %Change

StatementofOperationsData: Revenue 44.7 28.2 16.5 58.5%Costofsales 16.1 15.0 1.1 7.3%Grossprofit 28.6 13.2 15.4 116.7%Grossmargin 64.0% 46.8% 1,720bps

Selling,generalandadministrativeexpenses 45.1 25.8 19.3 74.8%SG&Aexpensesas%ofrevenue 100.9% 91.5% 940bps

Depreciationandamortization 3.4 2.2 1.2 54.5%Operatingloss (19.9) (14.8) (5.1) 34.5%Operatinglossas%revenue (44.5)% (52.5)% 800bps

Netinterestandotherfinancecosts 3.1 3.1 0.0 0.0%Lossbeforeincometaxes (23.0) (17.9) (5.1) 28.5%Incometaxrecovery (4.3) (5.8) 1.5 (25.9)%Effectivetaxrate 18.7% 32.4% (1,370)bps

Netloss (18.7) (12.1) (6.6) 54.5%Othercomprehensive(loss)income (0.3) 0.1 (0.4) (400.0)%Comprehensiveloss (19.0) (12.0) (7.0) 58.3%Earnings(loss)pershare Basicanddiluted $ (0.17) $ (0.11) (0.06) 54.5%

Weightedaveragenumberofsharesoutstanding Basic 108,660,494 106,500,498

Otherdata:(1) EBITDA (15.5) (11.7) (3.8) 32.5%AdjustedEBITDA (13.5) (13.6) 0.1 (0.7)%AdjustedEBITDAmargin (30.2)% (48.2)% 1,800bpsAdjustednetloss (17.1) (13.3) (3.8) 28.6%Adjustednetlossperbasicanddilutedshare $ (0.16) $ (0.12) (0.04) 33.3%

(1)EBITDA,adjustedEBITDA,adjustedEBITDAmargin,adjustednetloss,andadjustednetlossperbasicanddilutedsharearenon-IFRSfinancialmeasures.See“Non-IFRSFinancialMeasures”foradescriptionofthesemeasuresandareconciliationtothenearestIFRSmeasure.

Revenue

Revenue for the three months endedJune 30, 2018 increased by$16.5 million , or58.5% from$28.2 million for the threemonthsendedJune30,2017to$44.7million.Allgeographicregions


benefited,withtheincreasedrivenprimarilybygrowthinourDTCchannel,partiallyoffsetbyanunfavourableforeignexchangeimpactofapproximately$0.3million.Onaconstantcurrency(1)basis,revenueincreasedby59.6%forthethreemonthsendedJune30,2018comparedtothethreemonthsendedJune30,2017. RevenuegeneratedfromourDTCchannelrepresented51.9%oftotalrevenueforthethreemonthsendedJune30,2018comparedto29.5%forthethreemonthsendedJune30,2017andexceededmanagement’sexpectations.

Forthreemonthsended $Change ForeignExchangeImpact

$Change %Change

CAD$millions June30,2018 June30,2017 Asreported ConstantCurrency Asreported

ConstantCurrency

Wholesale 21.5 19.9 1.6 (0.1) 1.7 8.0% 8.5%DTC 23.2 8.3 14.9 (0.2) 15.1 179.5% 181.9%

Totalrevenue 44.7 28.2 16.5 (0.3) 16.8 58.5% 59.6%

(1)Constantcurrencyrevenueisanon-IFRSfinancialmeasure.See“Non-IFRSFinancialMeasures”foradescriptionofthesemeasures.

Wholesale

Revenuefromourwholesalechannelwas$21.5millionforthethreemonthsendedJune30,2018comparedto$19.9millionforthethreemonthsendedJune30,2017drivenbyhigherordervolumesfromexistingwholesalepartners.Salestodistributorsareseasonallystronginthefirstquarterinbothyears,butdecreasedasaproportionofwholesalerevenueinfiscal2019.

DTC

RevenuefromourDTCchannelwas$23.2millionforthethreemonthsendedJune30,2018comparedto$8.3millionforthethreemonthsendedJune30,2017.Therevenueincreaseof$14.9millionincludestheincrementalrevenuegeneratedfromourfour newCompany-ownedretail stores which opened after June30, 2017and fromour six newe-commerce sites launchedsinceJune 30, 2017 (the Company operated five sites in the three months ended June 30, 2017 ). We experienced strongperformancesofourexistinge-commercesitesandretailstores,withsignificantcontributionsfromwell-establishedlocations.

Revenuebygeography

CAD$millions ForthethreemonthsendedRevenuebygeography: June30,2018

%oftotalrevenue June30,2017

%oftotalrevenue $Change %Change

Canada 20.8 46.5% 10.4 36.9% 10.4 100.0%UnitedStates 11.4 25.5% 6.0 21.3% 5.4 90.0%RestofWorld 12.5 28.0% 11.8 41.8% 0.7 5.9% 44.7 100.0% 28.2 100.0% 16.5 58.5%

Revenue growth was positive across all our geographic regions for the three months endedJune30, 2018comparedtothethreemonthsendedJune30,2017.AllthreeregionsexperiencedanincreaseinDTCprimarilydrivenbyincrementalrevenuefromretailstoresande-commercesites


thatwerenotopeninthethreemonthsendedJune30,2017.ManagementdecisionsinrespectofthewholesaleorderbookallocationinthequarterresultedinaportionofanticipatedRestofWorldwholesalerevenuemovingfromthefirstquartertolaterquarters compared to the three months ended June 30, 2017 , compensated by opposite movements elsewhere in NorthAmerica.

Cost of Sales and Gross Profit

CostofsalesforthethreemonthsendedJune30,2018increasedby$1.1millionor7.3%comparedtothethreemonthsendedJune 30, 2017 . Gross profit and gross margin for the three months ended June 30, 2018were$28.6 million and64.0% ,respectively,comparedto$13.2millionand46.8%,respectively,forthesameperiodinfiscal2018.Theincreaseingrossprofitand gross margin was primarily attributable to revenue growth and favourable changes in channel mix with an increasedproportion of revenue from our DTC channel. As a result of our seasonality, changes that impact gross margin can have adisproportionateimpactonthequarterlyresultswhentheyarerecordedinouroffpeakperiods.

Forthethreemonthsended June30,2018 June30,2017

CAD$millions Reported %ofsegment

revenue Reported %ofsegment

revenue $

Change %ChangeWholesale Revenue 21.5 100.0% 19.9 100.0% 1.6 8.0%Costofsales 10.6 49.3% 12.9 64.8% (2.3) (17.8)%

Grossprofit 10.9 50.7% 7.0 35.2% 3.9 55.7%

DTC Revenue 23.2 100.0% 8.3 100.0% 14.9 179.5%Costofsales 5.5 23.7% 2.1 25.3% 3.4 161.9%

Grossprofit 17.7 76.3% 6.2 74.7% 11.5 185.5%

Total Revenue 44.7 100.0% 28.2 100.0% 16.5 58.5%Costofsales 16.1 36.0% 15.0 53.2% 1.1 7.3%

Grossprofit 28.6 64.0% 13.2 46.8% 15.4 116.7%

Wholesale

Costofsalesinourwholesalechannelwas$10.6millionforthethreemonthsendedJune30,2018comparedto$12.9millionforthethreemonthsendedJune30,2017.Grossprofitwas$10.9million(or50.7%ofsegmentrevenue)forthethreemonthsendedJune30,2018comparedto$7.0million(or35.2%ofsegmentrevenue)forthethreemonthsendedJune30,2017.Theincrease in gross profit of $3.9 million in the first quarter of fiscal 2018 is attributable to higher sales. The increase in grossmargin of 15.5 percentage points reflects a lower proportion of distributor sales, lower jacket cost per unit, a function offavourableforeignexchangeimpactinrawmaterialcostsatthetimeofpurchase,andhigherinventoryprovisionsinfiscal2018.


DTC

CostofsalesinourDTCchannelforthethreemonthsendedJune30,2018was$5.5millioncomparedto$2.1millionforthethreemonthsendedJune30,2017.Grossprofitwas$17.7million(or76.3%ofsegmentrevenue)forthethreemonthsendedJune 30, 2018 compared to $6.2 million (or74.7%of segment revenue) for the three months ended June 30, 2017 . TheincreaseinDTCchannelgrossprofit of$11.5millionincludestheincrementalgrossprofit generatedfromourfourCompany-owned retail stores opened in fiscal 2018 and an additional six e-commerce sites which opened after June 30, 2017 . Theincrease of 160 basis points in gross margin is accounted for by favourable product mix, partially offset by an unfavourableforeignexchangeimpact.

SG&A Expenses

SG&AexpensesforthethreemonthsendedJune30,2018were$45.1millioncomparedto$25.8millionforthethreemonthsendedJune30,2017.The$19.3millionor74.8%increasewasprimarilyattributabletoincreasedpersonnelinallsegmentsandinourcorporateofficetosupportgrowth,incrementalcostsassociatedwithfourretailstoresopenedinfiscal2018,investmentinITsupport,increasedmarketingspending,professionalfeesandothercostsofpubliccompanycompliance,offsetbythebenefitofforeignexchangegains.SG&Aexpensesincreasedasexpectedasapercentageofsalesfrom91.5%inthefirstquarteroffiscal 2018 to100.9% in fiscal 2019 , an increase of 9.4percentage points, as a result of higher fixed operating costs in atypicallylowrevenuequarter.


CAD$millions Reported %ofsegment

revenue Reported %ofsegment

revenue $

Change %ChangeSegment: Wholesale 8.0 37.2% 5.9 29.6% 2.1 35.6%DTC 11.2 48.3% 6.5 78.3% 4.7 72.3%Unallocatedcorporateexpense 25.9 13.4 12.5 93.3%TotalSG&Aexpenses 45.1 100.9% 25.8 91.5% 19.3 74.8%

Wholesale

SG&AexpensesinourwholesalechannelforthethreemonthsendedJune30,2018were$8.0million(or37.2%ofsegmentrevenue), compared with$5.9 million (or29.6%of segment revenue) for three months endedJune 30, 2017 . The increaseresultedfromheadcountandotherfixedcostsincurredinaquarterwithseasonallylowrevenue,includingsupportforsalesandoperationsofthewholesalebusiness.

DTC

SG&A expenses in our DTC channel for the three months ended June 30, 2018 were$11.2 million (or48.3%of segmentrevenue)comparedto$6.5million(or78.3%ofsegmentrevenue)forthethreemonthsendedJune30,2017.The$4.7millionincreaseinSG&AexpenseswasprimarilyattributabletohigheroperationalcostsdrivenbytheexpansionofourDTCchannel,inparticularthefixedoperatingcostsassociatedwithnewandexistingretailstoresincludingrentalcharges


andnewemployeeheadcount,partiallyoffsetbylowerpre-openingcostsfornewretailstoresof$0.2million(comparedto$1.4million for new stores in the same period of fiscal 2018 ). Revenue in the DTCchannel increased more than related SG&AexpensesresultinginareductionofSG&AexpensesasapercentageofsegmentrevenueforthethreemonthsendedJune30,2018.

UnallocatedCorporateExpense

UnallocatedcorporateexpensesforthethreemonthsendedJune30,2018was$25.9millioncomparedto$13.4millionforthethreemonthsendedJune30,2017.Theincreaseinunallocatedcorporateexpensesof$12.5millionwasprimarilyaresultofanincrease in corporate costs to support operational growth, including increased marketing, corporate headcount, informationtechnology support for business initiatives, professional fees and other costs of public company compliance, informationtechnologysupportforbusinessinitiatives,andlowerforeignexchangegains.

Operating Income (Loss) and Margin

TotaloperatinglossforthethreemonthsendedJune30,2018was$19.9millioncomparedto$14.8millionforthethreemonthsendedJune30,2017.Operatinglossasapercentageofrevenue(operatingmargin)forthethreemonthsendedJune30,2018was44.5%comparedto52.5%forthethreemonthsendedJune30,2017,animprovementof8.0percentagepoints.


CAD$millionsOperating

income(loss) Operatingmargin

Operatingincome(loss)

Operatingmargin

$Change %Change

Segment: Wholesale 2.9 13.5% 1.1 5.5% 1.8 163.6%DTC 6.5 28.0% (0.3) (3.6)% 6.8 (2,266.7)%

9.4 0.8 8.6 1,075.0%Unallocatedcorporateexpense 25.9 13.4 12.5 93.3%Unallocateddepreciationandamortizationexpense 3.4 2.2 1.2 54.5%

Totaloperatingloss (19.9) (44.5)% (14.8) (52.5)% (5.1) 34.5%

Wholesale

WholesalesegmentoperatingincomeforthethreemonthsendedJune30,2018was$2.9million(13.5%ofsegmentrevenue)comparedto$1.1million(5.5%ofsegmentrevenue)forthethreemonthsendedJune30,2017.The$1.8millionincreaseinsegmentoperatingincomeandincreaseoperatingmarginwereprimarilyattributabletohighergrossprofitandimprovedgrossmarginforthereasonsdescribedabove,partiallyoffsetbyincreasedSG&Aexpenses.


DTC

DTC segment operating income for the three months ended June 30, 2018was$6.5 million ( 28.0%of segment revenue)comparedtoDTCsegmentoperatinglossof$0.3million(3.6%ofsegmentrevenue)forthethreemonthsendedJune30,2017. The $6.8 million increase was primarily driven by the growth in DTC revenue from new and existing retail stores and e-Commerce sites, described above. The improvement in operating margin for the three months ended June 30, 2018 wasattributabletohigherrevenuefromourDTCchannelandlowerSG&Acosts.

Net Interest and Other Finance Costs

NetinterestandfinancecostsforthethreemonthsendedJune30,2018was$3.1million,unchangedcomparedwith$3.1millionforthethreemonthsendedJune30,2017.

TheexpenseforthethreemonthsendedJune30,2018reflectsahigheraverageinterestratepayableontheTermLoanfacility,offsetbyaloweraveragebalanceoutstandingontheRevolvingFacility.

Income Taxes

Incometaxrecoveryfor thethreemonthsendedJune30, 2018was$4.3millioncomparedto a$5.8millionrecoveryfor thethreemonthsendedJune30,2017.ForthethreemonthsendedJune30,2018,theeffectivetaxrateandstatutorytaxratewere18.7%and25.4%,respectively,comparedto32.4%and25.3%,respectively,forthethreemonthsendedJune30,2017.Thedecreaseintheeffectivetaxraterelatesprimarilytothedifferenceintaxratesandtonon-deductibleunrealizedlossesonforeignexchangetranslationinfiscal2018,anddoesnotaffectourexpectationsfortheeffectivetaxratefortheyear.

Net Loss

Netlossfor thethreemonthsendedJune30, 2018was$18.7millioncomparedto$12.1million for thethreemonthsendedJune30,2017,drivenbythefactorsdescribedabove.


QuarterlyFinancialInformation

Fiscal2019 Fiscal2018 Fiscal2017

CAD$millions(exceptpersharedata)

FirstQuarter FourthQuarter ThirdQuarter

SecondQuarter FirstQuarter

FourthQuarter ThirdQuarter

SecondQuarter

Revenue

Wholesale 21.5 30.0 134.2 152.1 19.9 14.6 137.1 122.4

DTC 23.2 94.8 131.6 20.2 8.3 36.5 72.0 5.5

Total 44.7 124.8 265.8 172.3 28.2 51.1 209.1 127.9

%offiscalyearrevenue —% 21.1% 45.0% 29.2% 4.8% 12.7% 51.8% 31.7%Netincome(loss) (18.7) 8.1 62.9 37.1 (12.1) (23.4) 39.1 20.0Basicearnings(loss)pershare $ (0.17) $ 0.08 $ 0.59 $ 0.35 $ (0.11) $ (0.23) $ 0.39 $ 0.20Dilutedearnings(loss)pershare $ (0.17) $ 0.07 $ 0.57 $ 0.33 $ (0.11) $ (0.23) $ 0.38 $ 0.20

RevenueinourwholesalesegmentishighestinoursecondandthirdquartersaswefulfillwholesalecustomerordersintimefortheFallandWinterretailseasons,and,inourDTCsegment,inthethirdandfourthquarters.Ournetincomeistypicallyreducedornegativeinthefirstandfourthquartersasweinvestaheadofourmostactiveseason.

Revenue

Overthelasteightquarters,revenuehasbeenimpactedbythefollowing:

• opening of retail stores in Toronto and New York City in the third quarter of fiscal 2017 and in Chicago, London,Calgary,andBostoninthethirdquarteroffiscal2018;

• launchofe-commerceintheU.K.andFranceinthesecondquarteroffiscal2017,inIrelandinfirstquarteroffiscal2018,andinLuxembourg,Belgium,theNetherlands,Sweden,GermanyandAustriainthesecondquarteroffiscal2018andinChinainthefourthquarteroffiscal2018;

• increased manufacturing efficiency and sales planning decisions affect the timing of execution of wholesaledeliveries. During the first half of fiscal 2018 we accelerated our shipment timing in response to requests fromwholesalepartnersapproachingtheir peaksellingseason. Wholesalerevenueof approximately$5millionand$13millionwasrecognizedinthefirstandsecondquartersoffiscal2018,respectively,whichwaspreviouslyexpectedtobeearnedinthethirdquarteroffiscal2018;

• introductionofournewSpringcollectioninthefourthquarteroffiscal2017andlaunchofournewknitwearcollectioninthesecondquarteroffiscal2018;

• successfulexecutionofglobalpricingstrategy;• shift in mix of revenue from wholesale to DTC, with the result that total revenue and profitability are increasingly

concentratedinthethirdquarter;• shiftingeographicmixofsalestoincreasesalesoutsideofCanada;and• fluctuationoftheU.S.dollar,PoundSterlingandEurorelativetotheCanadiandollar.


NetIncome(Loss)

Netincome(loss)hasbeenaffectedbythefollowingfactorsoverthelasteightquarters:

• impactoftheitemsaffectingrevenue,asdiscussedabove;• increase and timing of our investment in brand, marketing, and administrative support as well as increased

investmentinproperty,plant,andequipmentandintangibleassetstosupportgrowthinitiatives;• fixed SG&Acosts associated with our business, particularly the headcount growth and premises costs associated

withourexpandingDTCchannel,resultinginreducedornegativenetincomeinourseasonallylow-revenuefirstandfourthquarters;

• impactofforeignexchange;• higheraveragecostofborrowingstoaddressgrowingworkingcapitalrequirementsandhigherseasonalborrowings

inthefirstandsecondquartersofeachfiscalyeartoaddresstheseasonalnatureofrevenue;• pre-openingstorecostsincurredandtimingofleasessignedandCompany-ownedretailstoreopenings;• timingofachievingperformancevestingconditionsofstockoptions;• transaction costs in relation to the Company’s public share offering (“IPO”) in the fourth quarter of fiscal 2017and

public offerings of shares by the principal shareholders of the Company(the “Secondary Offerings”) in the secondquarteroffiscal2018andthefirstquarteroffiscal2019;

• changesinseniormanagement;and• one-timefeeof $9.6 million paid in thefourth quarter of fiscal 2017to terminate our Management Agreement with

BainCapitalwhichwasterminatedatthetimeoftheIPO.


NON-IFRSFINANCIALMEASURES

Threemonthsended

June30CAD$millions(exceptpersharedata) 2018 2017EBITDA (15.5) (11.7)AdjustedEBITDA (13.5) (13.6)AdjustedEBITDAmargin (30.2)% (48.2)%Adjustednetloss (17.1) (13.3)Adjustednetlossperbasicanddilutedshare $ (0.16) $ (0.12)Constantcurrencyrevenue 45.0 28.0Workingcapital 212.3 164.5

EBITDA,adjustedEBITDA,adjustedEBITDAmargin,adjustednetincome(loss)andadjustednetincome(loss)perbasicanddilutedshare

EBITDA,adjustedEBITDA,adjustedEBITDAmargin,adjustednetincome(loss)andadjustednetincome(loss)perbasicanddilutedsharearefinancialmeasuresthatarenotdefinedunderIFRS.Weusethesenon-IFRSfinancialmeasuresandbelievethey enhance an investor’s understanding of our financial and operating performance from period to period, because theyexcludecertainmaterialnon-cashitemsandcertainotheradjustmentswebelievearenotreflectiveofourongoingoperationsandourperformance.Accordingly,weusethesemetricstomeasureourcorefinancialandoperatingperformanceforbusinessplanningpurposesandasacomponentinthedeterminationofincentivecompensationforsalariedemployees.Inaddition,webelieveinvestorsusebothIFRSandnon-IFRSmeasures(EBITDA,adjustedEBITDA,adjustedEBITDAmargin, adjustednetincome(loss) and adjusted net income(loss) per basic and diluted share) to assess management’s past, current and futuredecisions associated with our priorities and our allocation of capital, as well as to analyze how our business operates in, orrespondsto,swingsineconomiccyclesortoothereventsthatimpacttheapparelindustry.However,thesemeasuresdonothave any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by othercompaniesinourindustry.Thesefinancialmeasuresarenotintendedtorepresentandshouldnotbeconsideredasalternativestonetincome,operatingincomeoranyotherperformancemeasuresderivedinaccordancewithIFRSasmeasuresofoperatingperformanceoroperatingcashflowsorasmeasuresofliquidity.

EBITDA,adjustedEBITDA,adjustedEBITDAmargin,adjustednetincome(loss)andadjustednetincome(loss)perbasicanddilutedsharehaveimportantlimitationsasanalyticaltoolsandshouldnotbeconsideredinisolationorasasubstituteforanystandardizedmeasureunderIFRS.Forexample,thesefinancialmeasures:

• excludecertaintaxpaymentsthatmayreducecashavailabletous;

• do not reflect any cashcapital expenditure requirements for the assets being depreciated andamortized that mayhavetobereplacedinthefuture;

• donotreflectchangesin,orcashrequirementsfor,ourworkingcapitalneeds;and

• donotreflecttheinterestexpense,orthecashrequirementsnecessarytoserviceinterestorprincipalpaymentsonourdebt.


Othercompaniesinourindustrymaycalculatethesemeasuresdifferentlythanwedo,limitingtheirusefulnessascomparativemeasures.

Constantcurrencyrevenue

Because we are a global company, the comparability of revenue reported in Canadian dollars is also affected by foreigncurrency exchange rate fluctuations because the underlying currencies in which we transact change in value over timecomparedtotheCanadiandollar.ThesecurrenciesincludetheU.S.dollar,Euro,PoundSterlingandSwissFrancs.Theseratefluctuations can have a significant effect on our reported results. Therefore, in addition to financial measures prepared inaccordancewithIFRS,ourrevenuediscussionsoftencontainreferencestoconstantcurrencymeasures,whicharecalculatedbytranslatingthecurrentyearandprioryearreportedamountsintocomparableamountsusingasingleforeignexchangerateforeachcurrencycalculatedbasedontheprioryearexchangeratesasmeasuredbytheBankofCanada.Thismeasureshouldnot be considered in isolation or as a substitute for any standardized measure under IFRS .We present constant currencyfinancial information, which is a non-IFRS financial measure, as a supplement to our reported operating results. We useconstantcurrencyinformationtoprovideaframeworktoassesshowourbusinesssegmentsperformedexcludingtheeffectsofforeign currency exchange rate fluctuations. We believe this information is useful to investors to facilitate comparisons ofoperatingresultsandbetteridentifytrendsinourbusinesses.

Other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparativemeasure.

Workingcapital

ThecalculationofworkingcapitalprovidesadditionalinformationandisnotdefinedunderIFRS.Wedefineworkingcapitalascurrentassetslesscurrentliabilities.Thismeasureshouldnotbeconsideredinisolationorasasubstituteforanystandardizedmeasure under IFRS . This information is intended to provide investors with information about the Company’s liquidity. See“FinancialCondition,LiquidityandCapitalResources”belowforatableprovidingthecalculationofworkingcapitalasatJune30,2018and2017andMarch31,2018.

Other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparativemeasure.


ThetablesbelowreconcilenetincometoEBITDA,adjustedEBITDA,andadjustednetlossfortheperiodsindicated.AdjustedEBITDAmarginisequaltoadjustedEBITDAfortheperiodpresentedasapercentageofrevenueforthesameperiod.

ForthethreemonthsendedJune30CAD$millions 2018 2017Netloss (18.7) (12.1)Add(deduct)theimpactof: Incometaxrecovery (4.3) (5.8)Netinterestandotherfinancecosts 3.1 3.1Depreciationandamortization 4.4 3.1EBITDA (15.5) (11.7)Add(deduct)theimpactof: Transactioncosts(a) 1.2 1.3Unrealizedforeignexchangeloss(gain)onTermLoanFacility(b) 0.4 (3.8)Share-basedcompensation(c) 0.2 0.1Pre-store-openingcosts(d) 0.2 0.5AdjustedEBITDA (13.5) (13.6)

ForthethreemonthsendedJune30CAD$millions 2018 2017Netloss (18.7) (12.1)Add(deduct)theimpactof: Transactioncosts(a) 1.2 1.3Unrealizedforeignexchangeloss(gain)onTermLoanFacility(b) 0.4 (3.8)Share-basedcompensation(c) 0.2 0.1Pre-store-openingcosts(d) 0.2 0.5AmortizationonintangibleassetsacquiredbyBainCapital(e) — 0.5Totaladjustments 2.0 (1.4)Taxeffectofadjustments (0.4) 0.2Adjustednetloss (17.1) (13.3)

(a) In connection with the Secondary Offerings completed in June 2018 and July 2017, we incurred expenses related toprofessionalfees,consulting,legal,andaccountingthatwouldotherwisenothavebeenincurred.Thesefeesarereflectedinthetableabove,anddonotreflectexpectedfutureoperatingexpensesaftercompletionoftheseactivities.

(b) Representsnon-cashunrealizedgainsandlossesonthetranslationoftheTermLoanFacilityfromUSDtoCAD,netoftheeffectofderivativetransactionsenteredintotohedgeaportionoftheexposuretoforeigncurrencyexchangerisk.

(c) Representsnon-cashshare-basedcompensationexpenseonstockoptionsissuedpriortotheIPOundertheLegacyPlan(asdefinedbelow).


(d) Representsnon-cashleaseamortizationchargesduringpre-openingperiodsfornewstoreleases.

(e) InconnectionwithBainCapital’spurchaseofa70%equityinterestinourbusinessonDecember9,2013,werecognizedanintangibleassetforcustomerlistsintheamountof$8.7million,whichhadausefullifeoffouryearsandwasfullyamortizedinthethirdquarteroffiscal2018.

FINANCIALCONDITION,LIQUIDITYANDCAPITALRESOURCES

Financial Condition

ThefollowingtablerepresentsourworkingcapitalpositionasatJune30,2018and2017andMarch31,2018.

CAD$millions June30,2018 June30,2017 $

Change March31,

2018 $

ChangeCurrentassets 306.9 216.6 90.3 301.0 5.9Currentliabilities 94.6 52.1 42.5 133.6 (39.0)Workingcapital 212.3 164.5 47.8 167.4 44.9

AsatJune30,2018,wehad$14.6millionofcashand$212.3millionofworkingcapital,comparedto$13.1millionofcashand$164.5millionofworkingcapitalasatJune30,2017.The$47.8millionincreaseinourworkingcapitalaroseprimarilyfromanincreasedvolumeofbusiness,includinga$62.5millionincreaseininventoryfromhigherproductiontosatisfycustomerordervolumeanda$20.0million increaseinothercurrentassets, partially offset byanincreaseinaccountspayableandaccruedliabilities of $42.6 million . The ratio of average working capital, excluding cash balances, to revenue, both measured on atrailingtwelvemonthbasisusingfinancialinformationreportedeachquarter,was22.7%forthetwelvemonthsendedJune30,2018.

Wehad$14.6millionof cashand$212.3millionof working capital, comparedto$95.3millionof cashand$167.4millionofworkingcapital as atMarch31, 2018 . The$44.9million increasein our working capital aroseprimarily froma$74.1millionincreaseininventoryaheadofourpeaksellingseason,a$9.1millionincreaseinothercurrentassets,a$19.6milliondecreasein accounts payable and accrued liabilities and an increase in income taxes paid of $17.4 million funded in part by usingavailablecashof$80.7million.

OurRevolvingFacility hadunusedavailability of$82.4millionasatJune30, 2018comparedto$71.7millionasatJune30,2017and$97.8millionasatMarch31,2018.Weexpectthatourcashonhandandcashflowsfromoperations,togetherwithourRevolvingFacility,willbeadequatetomeetourcapitalrequirementsandoperationalneedsforthenexttwelvemonths.


Cash FlowsAsummaryoftheCompany’sconsolidatedstatementofcashflowsforthethreemonthsendedJune30,2018comparedtothethreemonthsendedJune30,2017issetoutbelow.

Threemonthsended

June30CAD$millions 2018 2017 $ChangeTotalcashprovidedby(usedin):

Operatingactivities (154.5) (80.0) (74.5)Investingactivities (4.9) (7.2) 2.3Financingactivities 79.3 90.6 (11.3)Effectsofforeigncurrencyexchangeratechangesoncash (0.6) — (0.6)(Decrease)increaseincash (80.7) 3.4 (84.1)

Cash,beginningofperiod 95.3 9.7 85.6Cash,endofperiod 14.6 13.1 1.5

CashRequirements

Ourprimaryneedforliquidityistofundworkingcapital,capitalexpenditure,debtservice,andgeneralcorporaterequirementsofourbusiness.Ourprimarysourceofliquiditytomeetourcashrequirementsiscashgeneratedfromoperatingactivitiesoverourannual operatingcycle. WealsomaintaintheRevolvingFacility toprovideshort-termliquidity andtohavefundsavailableforworkingcapital. Our ability to fundour operations, invest in plannedcapital expenditures, meet debt obligationsandrepayorrefinance indebtedness depends on our future operating performance and cash flows, which are subject, but not limited to,prevailingeconomic,financialandbusinessconditions,someofwhicharebeyondourcontrol.Cashgeneratedfromoperatingactivitiesissignificantlyimpactedbytheseasonalityofourbusiness.Cashflowsfromoperatingactivitiesaretypicallyhighestinthethirdandfourthquarterofthefiscalyearduetoreducedworkingcapital requirementsduringthatperiodandcollectionofreceivablesfromrevenueearlierintheyear.TheCompanyhasalsobenefitedfromamorerapidcashconversioncycleinitsDTCsegmentasthatbusinesscontinuestogrow.

Cashflowsfromoperatingactivities

CashusedinoperatingactivitiesforthethreemonthsendedJune30,2018was$154.5millioncomparedto$80.0millionforthethreemonthsendedJune30,2017.Theincreaseincashoutflowsfromoperatingactivitiesof$74.5millionwasprimarilyduetoanincreaseinfundsusedtoacquireinventory($22.5million)inanticipationofgrowingcustomerdemand,increaseinothercurrent assets ($8.2million), pay accounts payable and accrued liabilities ($18.4million), andpay incometaxes ($23.0million).


Cashflowsfrominvestingactivities

Cashusedininvestingactivities for thethreemonthsendedJune30,2018was$4.9millioncomparedto$7.2million forthethreemonthsendedJune30,2017. Thedecreaseincashusedforinvestingactivitiesof$2.3millionrelatesprimarilytothetimingof capital additionsfor manufacturingcapacity, retail storeconstruction, andinvestmentsininformationtechnologyandproductdevelopment.Ourcapitalplanremainsontrackfortheyearasawhole.

Cashflowsfromfinancingactivities

CashgeneratedfromfinancingactivitiesforthethreemonthsendedJune30,2018was$79.3millioncomparedto$90.6millionfor the threemonths endedJune30, 2017 . Thenet decreasein cashgeneratedfor financingactivities of$11.3millionwasprimarilyattributabletolowerborrowingsontheRevolvingFacilitytofundworkingcapitalrequirementsaheadofourpeaksellingseason,afterdrawingdownavailablecashonhandby$80.7million.

Indebtedness

ThefollowingtablepresentsourindebtednessnetofcashasofJune30,2018and2017andMarch31,2018.

CAD$millions June30,2018 June30,2017 $

Change March31,

2018 $

ChangeCash 14.6 13.1 1.5 95.3 (80.7)RevolvingFacility (78.6) (99.3) 20.7 — (78.6)TermLoanFacility (149.5) (147.8) (1.7) (146.6) (2.9)Netdebtposition (213.5) (234.0) 20.5 (51.3) (162.2)

AsatJune30,2018,thenetdebtpositionwas$213.5millioncomparedto$234.0millionasatJune30,2017.ThedecreasewasdueprimarilytolowerborrowingsontheRevolvingfacilityof$20.7million . Averagenetdebtrepresentsleverageof1.2timesadjustedEBITDAfor theperiodendedJune30, 2018 , both measuredonatrailingtwelvemonthbasis usingfinancialinformationreportedeachquarter.

Thenetdebtpositionwas$213.5millioncomparedto$51.3millionasatMarch31,2018.Theincreaseinnetdebtof$162.2millionwas due to an $80.7 milliondecrease in cash as discussed above, borrowings of $78.6 millionunder the RevolvingFacilitytofundworkingcapitalrequirements,andanincreaseof$2.9millionintheamountowingundertheTermLoanFacilityduetoastrongerU.S.dollar.

RevolvingFacility

CanadaGooseanditswholly-ownedsubsidiaries,CanadaGooseInc.andCanadaGooseInternationalAG,haveaRevolvingFacility withasyndicateof lenders. TheRevolvingFacility hascommitmentsof $200.0millionwithaseasonal increaseupto$250.0millionduringthepeakseasonfromJune1throughNovember30.Inaddition,theRevolvingFacilityincludesaletterofcreditcommitmentintheamountof$25.0million.AllobligationsundertheRevolvingFacilityareunconditionallyguaranteedbythe Company and, subject to certain exceptions, our U.S., Swiss, U.K. and Canadian subsidiaries. The Revolving FacilitymaturesonJune3,2021andprovidesforcustomaryeventsofdefault.


LoansundertheRevolvingFacility, at our option, maybemaintainedfromtimetotimeas(a) PrimeRateLoans, whichbearinterestatarateperannumequaltotheApplicableMarginforPrimeRateLoansplusthePrimeRate,(b)Banker’sAcceptancesfundedonadiscountedproceedsbasisgiventhepublisheddiscountrateplusarateperannumequaltotheApplicableMarginforstampingfees,(c)ABRLoans,whichbearinterestatarateperannumequaltotheApplicableMarginforABRLoansplustheABR,(d)EuropeanBaseRateLoans,whichbearinterestatarateperannumequaltotheApplicableMarginforEuropeanBase Rate Loans plus the European Base Rate, (e) LIBOR Loans, which bear interest at a rate per annum equal to theApplicableMarginforLIBORLoansplustheLIBORRateor(f)EURIBORLoans,whichbearinterestatarateperannumequaltotheApplicableMarginforEURIBORLoansplustheapplicableEURIBOR.

AcommitmentfeewillbechargedontheaveragedailyunusedportionoftheRevolvingFacilityof0.25%perannumifaverageutilizationundertheRevolvingFacilityisgreaterthan50%or0.375%ifaverageutilizationundertheRevolvingFacilityislessthan50%.Aletterofcreditfee,withrespecttostandbylettersofcredit,willaccrueontheaggregatefaceamountofoutstandingletters of credit under the Revolving Facility equal to the Applicable Margin for LIBOR Loans, and, with respect to trade orcommerciallettersofcredit,50%ofthethenApplicableMarginonLIBORLoans.Afrontingfeewillbechargedontheaggregatefaceamountofoutstandinglettersofcreditequalto0.125%perannum.Inaddition,wepaytheadministrativeagentundertheRevolvingFacilityamonitoringfeeofonethousanddollarspermonth.

TheRevolvingFacilitycontainsfinancialandnon-financialcovenantswhichcouldimpacttheCompany’sabilitytodrawfunds.AsatandduringthethreemonthsendedJune30,2018and2017andMarch31,2018,theCompanywasincompliancewithallcovenants.

AsatJune30,2018,wehad$76.9millionoutstandingundertheRevolvingFacility,netofdeferredfinancingchargesof$1.7million(June30,2017-$97.3million,netofdeferredfinancingchargesof$2.0million).AsatMarch31,2018,theCompanyhadrepaidallamountsowingundertheRevolvingFacilityandrelateddeferredfinancingchargesintheamountof$1.7millionwereincludedinotherlong-termliabilities.TheCompanyhasunusedborrowingcapacityavailableundertheRevolvingFacilityof$82.4millionasatJune30, 2018(June30, 2017-$71.7million ,March31, 2018- $97.8million).AmountsundertheRevolving Facility may be borrowed, repaid and re-borrowed to fund our general corporate purposes and are available inCanadian dollars, U.S. dollars, and Euros and, subject to an aggregate cap of $40.0 million, such other currencies as areapprovedinaccordancewiththecreditagreementgoverningtheRevolvingFacility.


TermLoanFacility

TheCompanyandCanadaGooseInc. havea TermLoanFacility in the amount ofUS$113.8millionwith Credit SuisseAG,CaymanIslandsBranch,asadministrativeagentandcollateralagent,andcertainfinancialinstitutionsaslenders,whichmaturesonDecember2,2021.AllobligationsundertheTermLoanFacilityareunconditionallyguaranteedbytheCompanyand,subjectto certain exceptions, our U.S., U.K. and Canadian subsidiaries. The Term Loan Facility provides for customary events ofdefault.

TheinterestrateontheloanoutstandingundertheTermLoanFacilityistheLIBORRate(subjecttoaminimumrateof1.00%perannum)plusanApplicableMarginof4.00%.TheloancanalsobemaintainedasanABRloanwhichbearsinterestatABRplusanApplicableMarginwhichis1.00%lessthanthatforLIBORloans.

TheCompanyhaspledgedsubstantiallyallofitsassetsascollateralfortheTermLoanFacility.TheTermLoanFacilitycontainsnon-financialcovenants.AsatandduringthethreemonthsendedJune30,2018and2017andMarch31,2018,theCompanywasincompliancewithallcovenants.

AsthetermloanisdenominatedinU.S.dollars,theCompanyremeasurestheoutstandingbalanceinCanadiandollarsateachbalancesheetdate.AsatJune30,2018,wehad$149.5millionaggregateprincipalamountoutstandingundertheTermLoanFacility(June30,2017-$147.8million,March31,2018-$146.6million).ThedifferenceinamountsintheseperiodsistheresultofthechangeintheCAD:USDexchangerate.AmountsprepaidorrepaidundertheTermLoanFacilitymaynotbere-borrowed.

CapitalManagementTheCompanymanagesits capital, whichconsists of equity (subordinate votingsharesandmultiple votingshares) andlong-termdebt(theRevolvingFacilityandtheTermLoanFacility),withtheobjectivesofsafeguardingsufficientworkingcapitalovertheannualoperatingcycleandprovidingsufficientfinancialresourcestogrowoperationstomeetlong-termconsumerdemand.ManagementtargetsaratiooftrailingtwelvemonthsadjustedEBITDAtolong-termdebt,reflectingtheseasonalchangeinthebusiness as working capital builds through the second fiscal quarter. The Board of Directors of the Company monitors theCompany’scapitalmanagementonaregularbasis.WewillcontinuallyassesstheadequacyoftheCompany’scapitalstructureandcapacityandmakeadjustmentswithinthecontextoftheCompany’sstrategy,economicconditions,andriskcharacteristicsofthebusiness.


ContractualObligations

ThefollowingtablesummarizescertainofoursignificantcontractualobligationsandotherobligationsasatJune30,2018:

CAD$millionsQ2toQ4

2019 FY2020 FY2021 FY2022 FY2023 FY2024 Thereafter Total $ $ $ $ $ $ $ $Accountspayableandaccruedliabilities 90.0 — — — — — — 90.0Revolvingfacility — — — 78.6 — — — 78.6Termloan — — — 149.5 — — — 149.5Interestcommitmentsrelatingtolong-termdebt(1) 8.7 11.5 11.5 6.5 — — — 38.2Foreignexchangeforwardcontracts 0.4 — — — — — — 0.4Operatingleases 13.7 18.9 19.0 19.0 19.1 17.9 57.4 165.0Pensionobligation — — — — — — 1.3 1.3

Totalcontractualobligations 112.8 30.4 30.5 253.6 19.1 17.9 58.7 523.0

(1) Interestcommitmentsarecalculatedbasedontheloanbalance,andtheinterestratepayableontheRevolvingFacilityandtheTermLoanFacilityof3.08%and6.09%,respectively,asatJune30,2018.

AsatJune30,2018,wehadadditionallong-termliabilitieswhichincludedprovisionsforwarranty,agentterminationfees,salesreturns,assetretirementobligations,anddeferredincometaxliabilities.Theselong-termliabilitieshavenotbeenincludedinthetableaboveasthetimingandamountoffuturepaymentsareuncertain.

Off-Balance Sheet Arrangements

TheCompany has no off-balance sheet arrangements that have or are reasonably likely to have a current or future materialeffectonitsfinancialcondition,revenuesorexpenses,resultsofoperations,liquidity,capitalexpenditures,orcapitalresources.

Outstanding Share Capital

CanadaGooseisapubliclytradedcompanylistedontheNewYorkStockExchange(NYSE:GOOS)andontheTorontoStockExchange(TSX:GOOS).AsatAugust3,2018,therewere48,099,445subordinatevotingsharesissuedandoutstanding,and60,994,076multiplevotingsharesissuedandoutstanding.

AsatAugust3,2018,therewere3,167,706optionsand10,650restrictedshareunitsoutstandingundertheCompany’sequityincentive plans, 1,120,247 of which were vested as of such date. Each option and restricted share unit is or will becomeexercisableforonesubordinatevotingshare.

QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISK

Weareexposedtocertainmarketrisksarisingfromtransactionsinthenormalcourseofourbusiness.Suchriskisprincipallyassociatedwithforeigncurrencyexchangeratesandinterestrates.


Foreign exchange risk

Foreignexchangeriskinoperatingcashflows

OurInterimFinancialStatementsareexpressedinCanadiandollars,butaportionoftheCompany’snetassetsaredenominatedinforeigncurrencies,primarilyU.S.dollars,Euros,PoundsSterling,andSwissFrancs,throughitsforeignoperationsintheU.S.,U.K., France and Switzerland. Net monetary assets denominated in currencies other than Canadian dollars that are held inentitieswithCanadiandollarfunctional currencyaretranslatedintoCanadiandollarsat theforeigncurrencyexchangerateineffectatthebalancesheetdate.Asaresult, weareexposedtoforeigncurrencytranslationgainsandlosses.RevenuesandexpensesofallforeignoperationsaretranslatedintoCanadiandollarsattheforeigncurrencyexchangeratesthatapproximatetheratesineffectatthedateswhensuchitemsarerecognized.AppreciatingforeigncurrenciesrelativetotheCanadiandollarwillpositivelyimpactoperatingincomeandnetincomebyincreasingourrevenue,whiledepreciatingforeigncurrenciesrelativetotheCanadiandollarwillhavetheoppositeimpact.

Wearealsoexposedtofluctuationsin thepricesof U.S. dollar denominatedpurchasesasaresult of changesin U.S. dollarexchange rates. A depreciating Canadian dollar relative to the U.S. dollar will negatively impact operating income and netincomebyincreasingourcostsofrawmaterials,whileanappreciatingCanadiandollarrelativetotheU.S.dollarwillhavetheoppositeimpact.Sincefiscal2016weenteredintoderivativeinstrumentsintheformofforwardcontractstomanagethemajorityofourcurrentandanticipatedexposuretofluctuationsintheU.S.dollar,PoundSterling,Euro,andSwissFrancexchangeratesfor revenuesandpurchases. Beginningin fiscal 2017, certain foreignexchangeforwardcontracts havebeendesignatedandaccountedforascashflowhedges.

AsummaryofforeigncurrencyforwardexchangecontractsandthecorrespondingamountsasatJune30,2018isasfollows:

(millions) ContractAmount PrimaryCurrencyForwardexchangecontracttopurchasecurrency CHF 4.1 SwissFrancs

US$ 69.1 U.S.dollars € 21.6 Euros £ 0.8 PoundsSterling

Forwardexchangecontracttosellcurrency US$ 128.7 U.S.dollars € 41.3 Euros £ 28.3 PoundsSterling

ForeignexchangeriskofprincipalandinterestpaymentsontheTermLoanFacility

AmountsavailableforborrowingundertheTermLoanFacilityandpartofourRevolvingFacilityaredenominatedinU.S.dollars.Basedonouroutstandingbalancesof$149.5million(US$113.8million)undertheTermLoanFacilityasatJune30,2018,a$0.01 depreciation in the value of the Canadian dollar compared to the U.S. dollar would result in a decrease in our pre-taxincomeof$1.1millionsolelyasaresultofthatexchangeratefluctuation’seffectonthedebt.


OnOctober18,2017,theCompanyenteredintoderivativetransactionstohedgeaportionofitsexposuretoforeigncurrencyexchangeriskrelatedtotheTermLoanFacility.

TheCompanyenteredintoalong-datedforwardexchangecontracttobuy$75.0million,orUS$59.4millioninequivalentU.S.dollarsasmeasuredonthetradedate,tofixtheforeignexchangeriskontherelatedprincipalamountoftheTermLoanFacilityover the term to maturity (December 2, 2021). Unrealized gains and losses in the fair value of the forward contract arerecognizedinselling,generalandadministrativeexpensesinthestatementofincome.

TheCompanyalso entered into a cross-currency swapby selling $50.0 million, or US$40.0 million in equivalent U.S. dollarsfloatingratedebtbearinginterestatLIBORplus4.00%asmeasuredonthetradedate,andreceiving$50.0millionfixedratedebtbearinginterestatarateof5.80%.Thiscross-currencyswaphasbeendesignatedatinceptionandisaccountedforasacashflowhedge,andtotheextentthatthehedgeiseffective,unrealizedgainsandlossesareincludedinothercomprehensiveincomeandreclassifiedtothestatementofincomeastherelatedhedgedtransactionsimpactnetincome.

Concurrently, the Company entered into a second cross-currency swap by selling the $50.0 million fixed rate debt bearinginterestatarateof5.80%andreceiving$50.0million,or€34.0millioninequivalentEuro-denominatedfixedratedebtbearinginterest at a rate of 3.84%. This cross-currency swap has been designated and is accounted for as a hedge of the netinvestmentintheCompany’sEuropeansubsidiary.Hedgesofnetinvestmentsareaccountedforsimilarlytocashflowhedges,withunrealizedgainsandlossesincludedinother comprehensiveincome.Amountsincludedin other comprehensiveincomearereclassifiedtonetincomeintheperiodwhentheforeignoperationisdisposedoforsold.

Interest rate risk

WeareexposedtointerestrateriskprimarilyrelatedtotheeffectofinterestratechangesonborrowingsoutstandingunderourRevolvingFacilityandTermLoanFacility.AsatJune30,2018,wehad$78.6millionoutstandingunderourRevolvingFacilitywith a weighted average interest rate of 3.08%and outstanding debt under our Term Loan Facility of $ 149.5 millionwhichcurrently bears interest at 6.09% . Based on the weighted average amount of outstanding borrowings under the RevolvingFacilityduringthethreemonthsendedJune30,2018,a1.00%increaseintheaverageinterestrateonourborrowingswouldhaveincreasedinterestexpenseby$0.1millionintheperiod.Correspondingly,a1.00%increaseintherateonourTermLoanFacilitywouldhaveincreasedinterestexpensebyanadditional$0.4million.Theimpactonfutureinterestexpensebecauseoffuturechangesininterestrateswilldependlargelyonthegrossamountofourborrowingsatthattime.

RELATEDPARTYTRANSACTIONS

TheCompanyentersintotransactionsfromtimetotimewithitsprincipalshareholdersandorganizationsaffiliatedwithmembersof its Board of Directors by incurring expenses for business services. During the three months ended June 30, 2018 , theCompanyincurredexpenseswithrelatedpartiesoflessthan$0.1millionintotal(2017-$0.1million)tocompaniesrelatedtocertainshareholders.BalancesowingtorelatedpartiesasatthethreemonthsendedJune30,2018and2017werelessthan$0.1million.


CRITICALACCOUNTINGPOLICIESANDESTIMATES

OurInterimFinancialStatementshavebeenpreparedinaccordancewithIFRSasissuedbytheIASB.Thepreparationofourfinancial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities,revenuesandexpenses.Webaseourestimatesonhistoricalexperienceandonvariousotherassumptionsthatwebelievearereasonableunderthecircumstances.Actualresultsmaydifferfromtheseestimatesunderdifferentassumptionsorconditions.WhileoursignificantaccountingpoliciesaremorefullydescribedinthenotestoourAnnualFinancialStatementsand InterimFinancialStatements,webelievethatthefollowingaccountingpoliciesandestimatesarecriticaltoourbusinessoperationsandunderstandingourfinancialresults.

TheCompanyhasadoptedIFRS15,RevenuefromContractswithCustomersandIFRS9,FinancialInstrumentseffectiveApril1, 2018,whichdidnot haveamaterial effect onthefinancial statements. See“ChangesinAccountingPolicies”, below,for adescriptionoftheimpactfromadoptingthesenewstandards.

ThefollowingaretheaccountingpoliciessubjecttojudgmentsandkeysourcesofestimationuncertaintythatwebelievecouldhavethemostsignificantimpactontheamountsrecognizedintheInterimFinancialStatements.

Revenuerecognition.RevenuecomprisestheconsiderationtowhichtheCompanyexpectstobeentitledinexchangeforthesaleofgoodsintheordinarycourseoftheCompany’sactivities.Revenueispresentednetofsalestax,estimatedreturns,salesallowances, and discounts. The Company recognizes revenue when the Company has agreed terms with its customers, thecontractual rights and payment terms have been identified, the contract has commercial substance, it is probable thatconsiderationwillbecollectedbytheCompany,andwhenspecificcriteriafortransferofcontroltothecustomerhavebeenmetforeachoftheCompany’sactivities,asdescribedbelow.

Wholesale revenue comprises sales to third-party resellers (which includes international distributors and retailers) of theCompany’sproducts.Wholesalerevenuefromthesaleofgoodsisrecognized,netofanestimatedprovisionforsalesreturns,discountsandallowances,when the control of the goods has been transferred to the reseller which depends on the precisetermsof the agreement with eachreseller. TheCompany, at its discretion, maycancel all or a portion of any firmwholesalesalesorder.TheCompanyisthereforeobligatedtoreturnanyprepaymentsordepositsmadebyresellersforwhichtheproductisnotprovided.Alladvancepaymentsarethereforeincludedinaccruedliabilitiesinthestatementoffinancialposition.

DTC revenue consists of sales through the Company’s e-commerce operations and Company-owned retail stores. Salesthrough e-commerce operations are recognized upon estimated delivery of the goods to the customer, net of an estimatedprovision for sales returns, whencontrol of the goodshas transferredfromtheCompanyto the customer. Sales throughourCompany-ownedretailstoresarerecognizedupondeliverytothecustomeratthepointofsale,netofanestimatedprovisionforsalesreturns.

It istheCompany’spolicytosell merchandisethroughtheDTCchannelwithalimitedrighttoreturn,typicallywithin30days.Accumulatedexperienceisusedtoestimateandprovideforsuchreturns.


Inventories.Inventoriesarecarriedatthelowerofcostandnetrealizablevaluewhichrequiresustouseestimatesrelatedtofluctuationsinobsolescence,shrinkage,futureretailprices,seasonalityandcostsnecessarytoselltheinventory.

We periodically review our inventories and make provisions as necessary to appropriately value obsolete or damaged rawmaterials andfinishedgoods. In addition, as part of inventory valuations, weaccruefor inventory shrinkagefor lost or stolenitemsbasedonhistoricaltrendsfromactualphysicalinventorycounts.

Impairment of non-financial assets (goodwill, intangible assets, and property, plant and equipment).Weare required to usejudgmentindeterminingthegroupingofassetstoidentifytheircashgeneratingunits(“CGU”)forthepurposesoftestingfixedassetsforimpairment.JudgmentisfurtherrequiredtodetermineappropriategroupingsofCGUsforthelevelatwhichgoodwillandintangibleassetsaretestedforimpairment.Forthepurposeofgoodwillandintangibleassets’impairmenttesting,CGUsaregroupedatthelowestlevelatwhichgoodwillandintangibleassetsaremonitoredforinternalmanagementpurposes.Inaddition,judgmentisusedtodeterminewhetheratriggeringeventhasoccurredrequiringanimpairmenttesttobecompleted.

IndeterminingtherecoverableamountofaCGUoragroupofCGUs,variousestimatesareemployed.Wedeterminevalue-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 industryinformationreflectingtheriskassociatedwiththespecificcashflows.

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 oftemporarydifferencesandpossibleauditsofincometaxandothertaxfilingsbythetaxauthoritiesinthevariousjurisdictionsinwhichtheCompanyoperates.

Functionalcurrency.ItemsincludedintheconsolidatedfinancialstatementsoftheCompany’ssubsidiariesaremeasuredusingthe currency of the primary economic environment in which each entity operates (the functional currency). The consolidatedfinancialstatementsarepresentedinCanadiandollars,whichisourfunctionalandpresentationcurrency.

Financial instruments. Financial assets and financial liabilities are recognized when the Company becomes a party to thecontractualprovisionsofthefinancialinstrument.

Weenter into financial instruments with highly-ratedcreditworthyinstitutions and instruments with liquid markets and readily-availablepricinginformation.

Financialassetsandfinancialliabilitiesareinitiallymeasuredatfairvalue.Transactioncoststhataredirectlyattributabletotheacquisitionorissueoffinancialassetsandfinancialliabilities(otherthanfinancialassetsandfinancialliabilitiesclassifiedatfairvalue through profit or loss) are added to, or deducted from, the fair value of the financial assets or financial liabilities, asappropriate,oninitialrecognition.Transactioncostsdirectlyattributabletotheacquisitionoffinancialassetsorfinancialliabilitiesclassifiedatfairvaluethroughprofitorlossarerecognizedimmediatelyinprofitorloss.


Share-basedpayments.Share-basedpaymentsarevaluedbasedonthegrantdatefairvalueoftheseawardsandwerecordcompensation expense over the corresponding service period in our stock option plans. The fair value of the share-basedpaymentsisdeterminedusingacceptablevaluationtechniques.Thecompensationexpenserelatedtotheoptionsisrecognizedratablyovertherequisiteserviceperiod,provideditisprobablethatthevestingconditionswillbeachievedandtheoccurrenceoftheexitevent,ifapplicable,isprobable.

Wehaveissuedstockoptionstopurchasesubordinatevotingsharesunderourequityincentiveplans,priortothepublicofferingonMarch21,2017(the“LegacyPlan”)andsubsequently(the“OmnibusPlan”).Stockoptionsweregrantedtocertainexecutivesof the Company under the Legacy Plan with vesting contingent upon meeting service, performance goals and exit eventconditions.TherearetwotypesofstockoptionsoutstandingthatweregrantedundertheLegacyPlan:service-vestedoptionsgenerallyvestoverfiveyearsofservice,andperformance-basedandexit eventoptionsvestuponattainmentofperformanceconditionsandtheoccurrenceofanexitevent.StockoptionshavealsobeengrantedtocertainemployeesundertheOmnibusPlanwithservice-basedvesting,generallyoverfouryears.

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 thewarrantyclaimisexpectedtooccur;costofrepair;costofjacketreplacementandrisk-freerateusedtodiscounttheprovisiontopresent value. We review our inputs to this estimate on a quarterly basis to ensure the provision reflects the most currentinformationregardingourproducts.

Salesreturns.SalesreturnsrelateprimarilytogoodssoldthroughtheDTCsaleschannelwhichhavealimitedrightofreturn,typically within 30 days. The Company bases its estimate on historical return rates in its e-commerce and retail stores andreviewsitsactualreturnsexperienceperiodicallytoassesstheappropriatenessofthereturnratesused.

CHANGESINACCOUNTINGPOLICIES

StatementofCompliance

TheInterimFinancialStatementsarepreparedinaccordancewithIAS34,InterimFinancialReporting,asissuedbytheIASB.Certain information which is considered material to the understanding of the Interim Financial Statements and is normallyincludedintheAnnualFinancialStatementspreparedinaccordancewithIFRSisprovidedinthenotestotheInterimFinancialStatements.TheInterimFinancialStatementsdonotincludealloftheinformationrequiredforannualfinancialstatementsandshouldbereadinconjunctionwiththeAnnualFinancial Statements.TheInterimFinancial Statementsandtheaccompanyingnoteshavebeenpreparedusingtheaccountingpoliciesdescribedinnote2totheAnnualFinancialStatements,exceptfortheadoptionofnewstandardseffectiveApril1,2018,asnotedbelow.

Standardsissuedandadopted

Certainnewstandardsbecameeffectiveatthebeginningofthecurrentfiscalyear.Theimpactfromtheadoptionofthesenewstandardsisdescribedbelow.


RevenueEffective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2018, the IASBissued IFRS 15,Revenue from Contracts with Customers (“IFRS 15”) which replaces the guidance on revenue recognitionrequirementsthatpreviouslyexistedunderIFRS.Thenewstandardprovidesacomprehensiveframeworkfortherecognition,measurementanddisclosureofrevenuefromcontractswithcustomers,excludingcontractswithinthescopeoftheaccountingstandardsonleases,insurancecontractsandfinancialinstruments.IFRS15alsocontainsenhanceddisclosurerequirements.

The Company adopted the standard effective April 1, 2018 using the modified retrospective approach , which resulted in noadjustment to openingretainedearnings. Comparativeinformationhasnot beenrestatedandcontinuestobereportedunderpreviousaccountingstandards.Aftercompletingtheanalysisofitscustomercontracts,theCompanyhasdeterminedthattheimplementationofIFRS15didnotresultinanyadjustmentstotheopeningbalanceofretainedearningsortothepresentationoftheInterimFinancialStatements.

AsaresultofadoptingIFRS15,theCompanyupdateditsaccountingpoliciesfortherecognitionofrevenueassetoutbelow:

Revenue recognitionRevenuecomprisesofthefairvalueofconsiderationreceivedorreceivableforthesaleofgoodsintheordinarycourseoftheCompany’sactivities.Revenueispresentednetofsalestax,estimatedreturns,salesallowances,anddiscounts.TheCompanyrecognizesrevenuewhentheCompanyhasagreedtermswithits customers, thecontractual rightsandpaymenttermshavebeenidentified,thecontracthascommercialsubstance,itisprobablethatconsiderationwillbecollectedbytheCompany,andwhenspecificcriteriafortransferofcontroltothecustomerhavebeenmetforeachoftheCompany’sactivities,asdescribedbelow.

i) Wholesale

Wholesalerevenuecomprisessalestothirdpartyresellers(whichincludesinternationaldistributorsandretailers)oftheCompany’sproducts.Wholesalerevenuefromthesaleofgoodsisrecognizedwhenthecontrolofthegoodshasbeentransferredtothereseller,which,dependsontheprecisetermsoftheagreementwitheachreseller,netofanestimatedprovisionforsalesreturns.

TheCompany,atitsdiscretion,maycancelalloraportionofanyfirmwholesalesalesorder.TheCompanyisthereforeobligated to return any prepayments or deposits madeby resellers for which the product is not provided. All advancepaymentsarethereforeincludedinaccruedliabilitiesinthestatementoffinancialposition.

ii) Direct-to-Consumer

Direct-to-Consumer revenue consists of sales through the Company’s e-commerce operations and Company-ownedretailstores.Salesthroughe-commerceoperationsarerecognizeduponestimateddeliveryofthegoodstothecustomer, net of an estimated provision for sales returns, when control of the goods has transferred fromthe Company to thecustomer.SalesthroughourCompany-ownedretailstoresarerecognizeddeliverytothecustomeratthepointofsale,netofanestimatedprovisionforsalesreturns.


It is the Company’s policy to sell merchandise through the Direct-to-Consumer channel with a limited right to return,typicallywithin30days.Accumulatedexperienceisusedtoestimateandprovideforsuchreturns.

TheCompany’swarrantyobligationistoprovideanexchangeorrepairformanufacturingdefectiveproductsunderthestandardwarrantytermsandconditions.Thewarrantyobligationisrecognizedasaprovisionwhengoodsaresold.

FinancialinstrumentsEffective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2018, the IASBissuedIFRS9,FinancialInstruments(“IFRS9”)whichreplacesIAS39,FinancialInstruments:RecognitionandMeasurementandallpreviousversionsofIFRS9.IFRS9introducesnewrequirementsforclassificationandmeasurement,impairment,andhedgeaccountingandnewimpairmentrequirementsthat arebasedonaforward-lookingexpectedcredit lossmodel. IFRS9alsoamendsotherstandardsdealingwithfinancialinstrumentssuchasIFRS7,FinancialInstruments:Disclosures.

TheCompanyadoptedthestandardeffectiveApril1,2018,resultinginnosignificantadjustmenttoretainedearningsandhashadnomaterialeffectontheInterimFinancialStatements.

TheCompanyassessedwhichbusinessmodelsapplytothefinancialassetsheldandhasclassifieditsfinancialinstrumentsintotheappropriateIFRS9categories.Thesereclassificationsdidnothaveanimpactonthemeasurementoffinancialassetsandliabilities.

The following table summarizes the original classification under IAS 39 and the new classification under IFRS 9 for theCompany’sfinancialassetsandfinancialliabilities.AdoptionofthenewclassificationrequirementsunderIFRS9didnotresultinsignificantchangesinthemeasurementoffinancialassetsandfinancialliabilities.

Asset/Liability OriginalclassificationunderIAS39 NewclassificationunderIFRS9Cash Loansandotherreceivables AmortizedcostTradereceivables Loansandotherreceivables AmortizedcostAccountspayableandaccruedliabilities Otherliabilities AmortizedcostRevolvingfacility Otherliabilities AmortizedcostTermloan Otherliabilities AmortizedcostDerivative,notinahedgingrelationship Fairvaluethroughprofitorloss Fairvaluethroughprofitorloss

Reclassificationoffinancialassetsisrequirediftheobjectiveofthebusinessmodelinwhichtheyareheldchangesafterinitialrecognitionandifthechangeissignificanttotheentity’soperations.Noreclassificationoffinancialliabilitiesispermitted.

UpontransitiontheCompany’sderivativesdesignatedashedgescontinuetomeetthehedgingcriteria,thereforethefairvaluesflowthroughothercomprehensiveincomeunderbothIAS39andIFRS9.


Application of the expected credit loss model for trade accounts receivable did not result in any significant changes in theCompany’s impairment allowance, with expected cr edit losses to be measured over the life of the asset, typically theannualwholesalesalescycle.Standardsissuedbutnotyeteffective

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 all of the pronouncements will beadopted by the Company for the first period beginning after the effective date of the pronouncement. Information on newstandards,amendments,andinterpretationsareprovidedbelow.

In January 2016, the IASB issued IFRS 16,Leases (“IFRS 16”), replacing IAS 17, Leasesand related interpretations. Thestandard provides a new framework for lessee accounting that requires substantially all assets obtained through operatingleasestobecapitalizedandarelatedliabilitytoberecorded.Thenewstandardseekstoprovideamoreaccuratepictureofacompany’s leased assets and related liabilities and create greater comparability between companies who lease assets andthosewhopurchaseassets.IFRS16becomeseffectiveforannualperiodsbeginningonorafterJanuary1,2019,andistobeapplied retrospectively. Early adoption is permitted if IFRS 15 has been adopted. The Company is currently assessing theimpactofthenewstandardonitsconsolidatedfinancialstatements.

INTERNALCONTROLOVERFINANCIALREPORTING

Management’sConclusionsRegardingEffectivenessofDisclosureControlsandProcedures

Weconductedanevaluationoftheeffectivenessofour“disclosurecontrolsandprocedures”(“DisclosureControls”),asdefinedbyRules13a-15(e)and15d-15(e)oftheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”),asofJune30,2018, theendof theperiodcoveredbythisMD&A.TheDisclosureControlsevaluationwascompletedunderthesupervisionandwiththeparticipationofmanagement,includingourPresidentandChiefExecutiveOfficerandExecutiveVicePresidentandChiefFinancialOfficer.Thereareinherentlimitationstotheeffectivenessofanysystemofdisclosurecontrolsandprocedures.Accordingly,eveneffectivedisclosurecontrolsandprocedurescanonlyprovidereasonableassuranceofachievingtheircontrolobjectives. Based upon this evaluation, our President and Chief Executive Officer and Executive Vice President and ChiefFinancialOfficerconcludedthat,becauseofthematerialweaknessesinourinternalcontroloverfinancialreportingdescribedbelowin“ChangesinInternalControlOverFinancialReporting”,ourDisclosureControlswerenoteffectiveasofJune30,2018,such that the information required to be disclosed by us in reports filed under the Exchange Act is (i) recorded, processed,summarizedandreportedwithinthetimeperiodsspecifiedintheSEC’srulesandformsand(ii)accumulatedandcommunicatedtoourmanagement,includingourprincipalexecutiveandprincipalfinancialofficers,orpersonsperformingsimilarfunctions,asappropriate,toallowtimelydecisionsregardingdisclosure.

MaterialWeaknessinInternalControlOverFinancialReporting

InconnectionwiththeauditofourconsolidatedfinancialstatementsfortheyearendedMarch31,2018,weidentifiedmaterialweaknessesinourinternalcontroloverfinancialreporting,asdefinedinthestandardsestablishedbytheSarbanes-OxleyActof2002(the“Sarbanes-OxleyAct”).Amaterialweaknessisadeficiency,oracombinationofdeficiencies,ininternalcontroloverfinancial


reportingsuchthatthereisareasonablepossibilitythatamaterialmisstatementofourannualorinterimfinancialstatementswillnotbepreventedordetectedonatimelybasis.

We identified control deficiencies in aggregate that constitute material weaknesses in four components of internal control asdefinedbyCOSO2013(RiskAssessment,ControlActivities,InformationandCommunication,andMonitoring).AstheCompanyhasexperiencedsignificant expansionof operations andrevenuegrowth, wehaveincreasedthenumber of personnel in ourorganizationandspecificallyinourfinancialreportingteam.Despitethisprogress,managementdetermineditdidnotdesignandmaintaineffectivecontrolsoverthefollowing,eachofwhichisamaterialweakness:(a)theoccurrenceandaccuracyofrevenueand the existence of the related accounts receivable, and access controls to customer master data; (b) the existence andvaluation of inventory, including inventory costing and access controls to inventory master data; and (c) the accuracy andcompleteness of information used in the execution of internal controls primarily related to spreadsheets created from dataextracted from our enterprise resource planning (“ERP”) system. As a result, a reasonable possibility exists that materialmisstatementsintheCompany’sfinancialstatementswillnotbepreventedordetectedonatimelybasisinthefuture.

RemediationPlanandActivities

Managementhastakenthefollowingadditionalstepsduringthefirstquarteroffiscal2019andweanticipatefurtherstepstobetakenovertheremainderoffiscal2019:

• Hiredadditionalemployeeswithcostaccountingexpertiseandcapacity;• Hiredafull-timeSeniorDirector,SpecialProjectswithresponsibilityforoversightofinternalcontrolsdrivecontrolliteracy

andcommunicationamongcontrolowners;and• Engagingathirdpartytoassistwithevaluatingallsourcesofinformationusedincontrols,developingandimplementing

acomprehensivecontrolframeworkforthisinformationandtrainingcontrolownersontherelatedcontrolexecutionandevidencing.

In addition to the plans outlined above, management has commenced an upgrade of its existing ERP system withimplementation planned for fiscal 2020. The upgraded ERP system will support business scalability and enhance internalcontrolsthroughincreasedprocessautomation.SeniormanagementhasdiscussedthematerialweaknessesdescribedabovewiththeAuditCommittee,whichwillcontinuetoreviewprogressontheseremediationactivities.

As the Company continues to evaluate and work to improve its internal control over financial reporting, management maydetermine to take additional measures to address control deficiencies. The material weaknesses cannot be consideredremediateduntiltheapplicablerelevantcontrolsoperateforasufficientperiodoftimeandmanagementhasconcluded,throughtesting,thatthesecontrolsareoperatingeffectively.Noassurancecanbeprovidedatthistimethattheactionsandremediationefforts will effectively remediate the material weaknesses described above or prevent the incidence of other materialweaknesses in the Company’s internal control over financial reporting in the future. We do not knowthe specific time frameneededto fully remediate thematerial weaknessesidentified above. See“Risk Factors” in our Annual Report on Form20-F.Management, including the President and Chief Executive Officer and Executive Vice President and Chief Financial Officer ,doesnotexpectthatdisclosurecontrolsandproceduresorinternalcontroloverfinancialreportingwillpreventallmisstatements,evenastheremediationmeasuresareimplementedandfurtherimprovedtoaddressthematerialweaknesses.Thedesignofanysystemofinternalcontrolsisbasedinpartuponcertainassumptionsaboutthelikelihoodoffutureevents,


andtherecanbenoassurancethatanydesignwillsucceedinachievingthestatedgoalsunderallpotentialfutureconditions.

Theinitiativesweareimplementingtoremediatethematerialweaknessaresubjecttocontinuedmanagementreviewsupportedby confirmation and testing, as well as Audit Committee oversight. We will continue to implement measures to remedy ourinternal control deficiencies in order to meet the deadline imposed by Section 404 of the Sarbanes-Oxley Act. However, wecannot be certain that the measures wehave taken or may take in the future will ensure that we will establish and maintainadequatecontrolsoverourfinancialprocessesandreportinginthefuture.

Notwithstandingthematerialweakness,ourmanagementhasconcludedthatthefinancialstatementsincludedelsewhereinthisQuarterlyReportpresentfairly,inallmaterialrespects,ourfinancialposition,resultsofoperationsandcashflowsinconformitywithIFRS.

ChangesinInternalControloverFinancialReporting

Otherthanthosedescribedabove,therehavebeennochangesintheCompany’sinternalcontrol overfinancial reporting(asdefinedinRule13a-15(f)and15d-5(f)undertheExchangeAct)duringthequarterendedJune30,2018,thathavemateriallyaffected,orthatarereasonablylikelytomateriallyaffect,theCompany’sinternalcontroloverfinancialreporting.


CERTIFICATION

I,DaniReiss,certifythat:

1. IhavereviewedthefinancialstatementsandMD&AforthethreemonthsendedJune30,2018ofCanadaGooseHoldingsInc.;

2. Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3. Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsofthecompanyasof,andfor,theperiodspresentedinthisreport;

4. Thecompany’sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))forthecompanyandwehave:

a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtothecompany,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

b) Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

c) Evaluatedtheeffectivenessofthecompany’sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

d) Disclosedinthisreportanychangeinthecompany’sinternalcontroloverfinancialreportingthatoccurredduringthecompany’smostrecentfiscalquarter(thecompany’sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,thecompany’sinternalcontroloverfinancialreporting;and

5. Thecompany’sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,tothecompany’sauditorsandtheauditcommitteeofthecompany’sboardofdirectors(orpersonsperformingtheequivalentfunction):

a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffectthecompany’sabilitytorecord,process,summarizeandreportfinancialinformation;and

b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleinthe

company’sinternalcontroloverfinancialreporting.

Date:August9,2018

By: /s/DaniReiss DaniReiss President and Chief Executive Officer

CERTIFICATION

I,JonathanSinclair,certifythat:

1. IhavereviewedthefinancialstatementsandMD&AforthethreemonthsendedJune30,2018ofCanadaGooseHoldingsInc.;

2. Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3. Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsofthecompanyasof,andfor,theperiodspresentedinthisreport;

4. Thecompany’sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))forthecompanyandwehave:

a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtothecompany,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

b) Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

c) Evaluatedtheeffectivenessofthecompany’sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

d) Disclosedinthisreportanychangeinthecompany’sinternalcontroloverfinancialreportingthatoccurredduringthecompany’smostrecentfiscalquarter(thecompany’sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,thecompany’sinternalcontroloverfinancialreporting;and

5. Thecompany’sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,tothecompany’sauditorsandtheauditcommitteeofthecompany’sboardofdirectors(orpersonsperformingtheequivalentfunction):

a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffectthecompany’sabilitytorecord,process,summarizeandreportfinancialinformation;and

b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleinthe

company’sinternalcontroloverfinancialreporting.

Date:August9,2018

By: /s/JonathanSinclair JonathanSinclair

Executive Vice President and Chief Financial

Officer

-2-

Canada Goose Reports Results forFirst Quarter Fiscal Year 2019

First Quarter Fiscal 2019 Highlights (in millions of Canadian dollars):

• Total revenue increased by 58.5% to $ 44.7m• Net loss was $ (18.7)m , or $ (0.17) per basic and diluted share• Adjusted EBITDA was $ (13.5)m , compared to $ (13.6)m• Adjusted net loss was $ (17.1)m , or $ (0.16) per basic and diluted share

Adjusted EBITDA, Adjusted net loss and Adjusted net loss per basic and diluted share are non-IFRS financial measures. See “Note

Regarding Non-IFRS Financial Measures”.

TORONTO, ON (August 9, 2018) -CanadaGooseHoldingsInc.(“CanadaGoose”orthe“Company”)todayannouncedfinancialresults

foritsfirstquarterendedJune30,2018.TheCompany’sManagement’sDiscussionandAnalysisandUnauditedCondensedConsolidated

InterimFinancialStatementsforthethreemonthperiodendedJune30,2018willbefiledonSEDARatwww.sedar.com,theEDGARsection

of the U.S. Securities and Exchange Commission website at www.sec.gov and posted on the Company’s website at

investor.canadagoose.com.

“Ourstrongstarttotheyear,inoursmallestfiscalquarter,isagreatleadingindicator.Ourproductsandourbrandcontinuetoresonatewith

people around the world, and our direct-to-consumer channel was a standout performer in the quarter. Productivity across our retail store

network in this off-peak period was exceptional, reducing the loss impact of our strategic growth investments and giving us a favorable

tailwindfortherestoftheyear,”statedDaniReiss,President&ChiefExecutiveOfficer.

First Quarter Fiscal 2019 Results (in Canadian dollars, compared to First Quarter Fiscal 2018 ):

• Totalrevenueincreasedby58.5%to$44.7mfrom$28.2m.

• Direct-to-consumer(“DTC”)revenueincreasedto$23.2mfrom$8.3m.Theincreasewasprimarilyduetothestrongperformance

ofallexistingandnewretailstores,withparticularlysignificantcontributionsfromwell-establishedlocations.E-commercealsohad

apositiveimpactonthequarter.

• Wholesalerevenueincreasedto$21.5mfrom$19.9m,drivenbyhigherordervolumesfromexistingretailpartners.

• Grossprofitincreasedto$28.6m,agrossmarginof64.0%,comparedto$13.2m,agrossmarginof46.8%.Theincreaseingross

marginwasattributabletoagreaterproportionofDTCrevenueandtoalesserdegree,wholesalegrossmarginexpansion.

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• DTCgrossprofitwas$17.7m,agrossmarginof76.3%,comparedto$6.2m,agrossmarginof74.7%.Theincreaseingross

marginwasprimarilydrivenbyproductmixandpartiallyoffsetbyunfavorableforeignexchangefluctuations.

• Wholesalegrossprofitwas$10.9m,agrossmarginof50.7%,comparedto$7.0m,agrossmarginof35.2%.Theincreaseingross

margin was primarily attributable to a different wholesale mix in the quarter compared to the same quarter last year. Favorable

foreignexchangefluctuationsbetweenthepurchaseofrawmaterialsandthesaleofproductalsocontributedtolowerunitcosts,and

inventoryprovisionmovementswerelowerinthecurrentperiod.

• Operatinglosswas$(19.9)m,comparedtoalossof$(14.8)m. Theincreaseinoperatinglosswasdrivenbyhigherunallocated

corporateexpensesinaseasonallysmallquarter,partiallyoffsetbylargeroperatingincomecontributionsfrombothchannels.

• Unallocatedcorporateexpenseswere$25.9m,comparedto$13.4m.TheincreasewasduetoSG&Agrowthinvestmentsincluding

marketing,corporateheadcountandIT,aswellashigherprofessionalfeesandothercostsrelatingtopubliccompanycompliance.

• Unallocateddepreciationandamortizationwas$3.4m,comparedto$2.2m,drivenbytheretailstoreopeningprogram.

• DTCoperating income was $6.5m, an operating margin of28.0%, compared to an operating loss of $ (0.3)m. The shift to a

positiveoperatingmarginwasdrivenbystrongretailstoreproductivity,aswellaschannelgrossmarginexpansionandalowerlevel

ofpre-openingcosts.

• Wholesaleoperatingincomewas$2.9m,anoperatingmarginof13.5%,comparedto$1.1m,anoperatingmarginof5.5%.The

increase in operating margin was driven by an increase in channel gross margin, partially offset by higher channel SG&A as a

percentageofsales,duetoadditionstoheadcountandcostsforsalesandoperationssupport.

• Netlosswas$(18.7)m,or$(0.17)perbasicanddilutedshare,comparedtoanetlossof$(12.1)m,or$(0.11)perbasicanddiluted

share.

• AdjustedEBITDA(1)was$(13.5)mcomparedto$(13.6)m.

• Adjustednetloss(1)was$(17.1)m,or$(0.16)perbasicanddilutedshare,comparedtoanadjustednetlossof$(13.3)m,or$(0.12)

perbasicanddilutedshare.(1)

See “Note Regarding Non-IFRS Financial Measures”.

Fiscal 2019 Outlook

TheCompanyreiteratesthefollowingoutlookforfiscal2019:

• Annualrevenuegrowthofatleast20%

• AdjustedEBITDAmarginexpansionofatleast50basispoints

• Annualgrowthinadjustednetincomeperdilutedshareofatleast25%

Thefiscal2019outlookaboveandkeyassumptionsunderlyingsuchoutlookwereoriginallyprovidedonJune15,2018,inthepressrelease

announcingtheCompany’sResultsforFiscalYear2018undertheheading“Fiscal2019and

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Long-TermOutlook”.Withinthemeaningofapplicablesecuritieslaws,thisoutlookconstitutesforward-lookinginformation.Actualresults

couldvarymateriallyasaresultofnumerousfactors,includingcertainriskfactors,manyofwhicharebeyondtheCompany’scontrol.See

“CautionaryNoteRegardingForward-LookingStatements”.

Conference Call Information

Aconferencecalltodiscussfirstquarterfiscal2019resultsisscheduledfortoday,August9,2018,at9:00a.m.EasternTime.DaniReiss,

PresidentandChiefExecutiveOfficerandJonathanSinclair,EVPandChiefFinancialOfficer,willhosttheconferencecall.Thoseinterested

in participating in the call are invited to dial (844) 579-6824or (763) 488-9145if calling internationally. Please dial in approximately 10

minutespriortothestartofthecallandreferenceConferenceID8573118whenprompted.Aliveaudiowebcastoftheconferencecallwill

beavailableonlineathttp://investor.canadagoose.com.

About Canada Goose

FoundedinasmallwarehouseinToronto,Canadain1957,CanadaGoosehasgrownintooneoftheworld’sleadingmakersofperformance

luxuryapparel.EverycollectionisinformedbytheruggeddemandsoftheArcticandinspiredbyrelentlessinnovationanduncompromised

craftsmanship.FromAntarcticresearchfacilitiesandtheCanadianHighArctic,tothestreetsofNewYork,London,Milan,Paris,andTokyo,

peopleareproudtowearCanadaGooseproducts.Employingmorethan2,900peopleworldwide,CanadaGooseisarecognizedleaderforits

MadeinCanadacommitment,andisalong-timepartnerofPolarBearsInternational.Visitcanadagoose.comformoreinformation.

Non-IFRS Financial Measures

Thispressreleaseincludesreferencestoadjustednetloss,EBITDA,adjustedEBITDA,adjustedEBITDAmargin,andadjustednetlossper

basicanddilutedshare.TheCompanypresentsthesemeasuresbecauseitsmanagementusestheseassupplementalmeasuresinassessingits

operatingperformance,andbelievestheyarehelpfultoinvestors,securitiesanalystsandotherinterestedparties,inevaluatingtheCompany’s

performance.ThemeasuresreferencedabovearenotmeasurementsoffinancialperformanceunderIFRSandtheyshouldnotbeconsidered

as alternatives to measures of performance derived in accordance with IFRS. In addition, these measures should not be construed as an

inference that the Company’s future results will be unaffected by unusual or non-recurring items. These measures have limitations as

analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing the Company’s results as

reportedunderIFRS.TheCompany’sdefinitionsandcalculationsofthesemeasuresarenotnecessarilycomparabletoothersimilarlytitled

measuresusedbyothercompanies.Thesenon-IFRSfinancialmeasuresaredefinedandreconciledtothemostcomparableIFRSmeasuresin

thetablesattheendofthispressrelease.

A reconciliation of projected adjusted EBITDA and adjusted net income, which are forward-looking measures that are not prepared in

accordance with IFRS, to the most directly comparable IFRS financial measures, is not provided because we are unable to provide such

reconciliation without unreasonable effort. The inability to provide a quantitative reconciliation is due to the uncertainty and inherent

difficultypredictingtheoccurrence,thefinancialimpactandtheperiodsinwhichthecomponentsoftheapplicableIFRSmeasuresandnon-

IFRS adjustments may be recognized. The IFRS measures may include the impact of such items as non-cash share-based compensation,

revaluationofthecarrying

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valueofourindebtedness,amortizationofintangibleassetsandthetaxeffectofsuchitems,inadditiontootheritemswehavehistorically

excludedfromadjustedEBITDAandadjustednetincome.Weexpecttocontinuetoexcludetheseitemsinfuturedisclosuresofthesenon-

IFRSmeasuresandmayalsoexcludeothersimilaritemsthatmayariseinthefuture(collectively,“non-IFRSadjustments”).Thedecisions

andeventsthattypicallyleadtotherecognitionofnon-IFRSadjustmentsareinherentlyunpredictableastoiforwhentheymayoccur.As

such,forourfiscal2019outlook,wehavenotincludedestimatesfortheseitemsandareunabletoaddresstheprobablesignificanceofthe

unavailableinformation,whichcouldbematerialtofutureresults.

Cautionary Note Regarding Forward-Looking Statements

TheforegoingfinancialinformationasatandforthethreemonthsendedJune30,2018areunauditedandsubjecttoquarter-endandyear-end

adjustmentsinconnectionwiththecompletionofourcustomaryfinancialclosingprocedures.Suchchangescouldbematerial.

Thispressreleaseincludesforward-lookingstatements. Theseforward-lookingstatementsgenerallycanbeidentifiedbytheuseofwords

suchas“anticipate,”“expect,”“plan,”“could,”“may,”“will,”“believe,”“estimate,”“forecast,”“goal,”“project,”andotherwordsofsimilar

meaning.Eachforward-lookingstatementcontainedinthispressreleaseissubjecttorisksanduncertaintiesthatcouldcauseactualresultsto

differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, our

expectations regarding industry trends, our business plan and growth strategies, our expectations regarding seasonal trends, our ability to

implement our growthstrategies, our ability to keeppacewith changingconsumerpreferences, our ability to maintain the strengthof our

brandandprotectourintellectualproperty,aswellastherisksidentifiedundertheheading“RiskFactors”inourAnnualReportonForm20-

FforthefiscalyearendedMarch31,2018,andfiledwiththeSecuritiesandExchangeCommission(“SEC”),andthesecuritiescommissions

orsimilarsecuritiesregulatoryauthoritiesineachoftheprovincesandterritoriesofCanada(“Canadiansecuritiesregulatoryauthorities”),as

wellastheotherinformationwefilewiththeSECandCanadiansecuritiesregulatoryauthorities. Wecautioninvestorsnottorelyonthe

forward-lookingstatementscontainedinthispressreleasewhenmakinganinvestmentdecisioninoursecurities.Youareencouragedtoread

our filings with the SEC, available at www.sec.gov , and our filings with Canadian securities regulatory authorities available at

www.sedar.comforadiscussionoftheseandotherrisksanduncertainties.Theforward-lookingstatementsinthispressreleasespeakonlyas

ofthedateofthisrelease,andweundertakenoobligationtoupdateorreviseanyofthesestatements.Ourbusinessissubjecttosubstantial

risksanduncertainties,includingthosereferencedabove.Investors,potentialinvestors,andothersshouldgivecarefulconsiderationtothese

risksanduncertainties.

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Condensed Consolidated Interim Statements of Loss and Comprehensive Loss(unaudited)(inmillionsofCanadiandollars,exceptshareandpershareamounts)

Three months ended

June 30 2018 2017

$ $Revenue 44.7 28.2Costofsales 16.1 15.0Gross profit 28.6 13.2

Gross margin 64.0 % 46.8 %Selling,generalandadministrativeexpenses 45.1 25.8

SG&A expenses as % of revenue 100.9 % 91.5 %Depreciationandamortization 3.4 2.2Operating loss (19.9) (14.8)

Operating loss as % revenue (44.5)% (52.5)%Netinterestandotherfinancecosts 3.1 3.1Loss before income taxes (23.0) (17.9)Incometaxrecovery (4.3) (5.8)

Effective tax rate 18.7 % 32.4 %Net loss (18.7) (12.1)Othercomprehensive(loss)income (0.3) 0.1Comprehensive loss (19.0) (12.0)Earnings (loss) per share Basicanddiluted $ (0.17) $ (0.11)Weightedaveragenumberofsharesoutstanding

Basic 108,660,494 106,500,498Other data: (1) Adjustednetloss (17.1) (13.3)Adjustednetlossperbasicanddilutedshare $ (0.16) $ (0.12)EBITDA (15.5) (11.7)AdjustedEBITDA (13.5) (13.6)

(1) , Adjusted net loss,adjusted net loss per basic and diluted share, EBITDA, and adjusted EBITDA are non-IFRS financialmeasures. See —“Reconciliation of Non-IFRS Financial Measures” for a description of these measures and a reconciliation to thenearest IFRS measure.

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Condensed Consolidated Interim Statements of Financial Position(unaudited)As at June 30, 2018 and 2017 and March 31, 2018(inmillionsofCanadiandollars)

June 30 June 30 March 31 2018 2017 2018Assets $ $ $Current assets Cash 14.6 13.1 95.3Tradereceivables 12.4 8.5 11.9Inventories 239.5 177.0 165.4Incometaxesreceivable 8.0 5.6 5.1Othercurrentassets 32.4 12.4 23.3Total current assets 306.9 216.6 301.0

Deferredincometaxes 10.5 10.1 3.0Property,plantandequipment 64.2 40.4 60.2Intangibleassets 140.1 131.7 136.8Otherlong-termassets 4.5 — 2.1Goodwill 45.3 45.3 45.3Total assets 571.5 444.1 548.4

Liabilities Current liabilities Accountspayableandaccruedliabilities 90.0 47.4 109.6Provisions 4.3 4.7 6.3Incometaxespayable 0.3 — 17.7Total current liabilities 94.6 52.1 133.6

Provisions 10.5 9.4 10.8Deferredincometaxes 12.5 11.2 13.3Revolvingfacility 76.9 97.3 —Termloan 140.4 136.6 137.1Otherlong-termliabilities 10.8 3.1 10.0Total liabilities 345.7 309.7 304.8 Shareholders' equity 225.8 134.4 243.6Total liabilities and shareholders' equity 571.5 444.1 548.4

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Condensed Consolidated Interim Statements of Cash Flows(unaudited)For the three months ended June 30(inmillionsofCanadiandollars)

2018 2017 $ $CASH FLOWS FROM OPERATING ACTIVITIES: Netloss (18.7) (12.1)Itemsnotaffectingcash Depreciationandamortization 4.4 3.1Incometaxrecovery (4.3) (5.8)Interestexpense 3.0 3.0Unrealizedforeignexchangegain (1.2) (3.3)Share-basedcompensation 0.4 0.2

(16.4) (14.9)Changesinnon-cashoperatingitems (111.6) (61.3)Incometaxespaid (24.3) (1.3)Interestpaid (2.2) (2.5)Netcashusedinoperatingactivities (154.5) (80.0)CASH FLOWS FROM INVESTING ACTIVITIES: Purchaseofproperty,plantandequipment (2.1) (5.6)Investmentinintangibleassets (2.8) (1.3)Businesscombination — (0.3)Netcashusedininvestingactivities (4.9) (7.2)CASH FLOWS FROM FINANCING ACTIVITIES: Borrowingsonrevolvingfacility 78.5 90.5Exerciseofstockoptions 0.8 0.1Netcashfromfinancingactivities 79.3 90.6Effectsofforeigncurrencyexchangeratechangesoncash (0.6) —(Decrease)increaseincash (80.7) 3.4Cash,beginningofperiod 95.3 9.7

Cash,endofperiod 14.6 13.1

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Reconciliation of Non-IFRS Measures

ThetablesbelowreconcilenetincometoEBITDA,adjustedEBITDA,andadjustednetlossfortheperiodspresented:

CAD $ millions(unaudited)

Three months ended June 30

2018 2017Netloss (18.7) (12.1)Add (deduct) the impact of: Incometaxrecovery (4.3) (5.8)Netinterestandotherfinancecosts 3.1 3.1Depreciationandamortization 4.4 3.1EBITDA (15.5) (11.7)Add (deduct) the impact of: Transactioncosts(a) 1.2 1.3Unrealizedforeignexchangeloss(gain)onTermLoanFacility(b) 0.4 (3.8)Share-basedcompensation(c) 0.2 0.1Pre-store-openingcosts(d) 0.2 0.5AdjustedEBITDA (13.5) (13.6)

CAD $ millions(unaudited)

Three months ended June 30

2018 2017Netloss (18.7) (12.1)Add (deduct) the impact of: Transactioncosts(a) 1.2 1.3Unrealizedforeignexchangeloss(gain)onTermLoanFacility(b) 0.4 (3.8)Share-basedcompensation(c) 0.2 0.1Pre-store-openingcosts(d) 0.2 0.5AmortizationonintangibleassetsacquiredbyBainCapital(e) — 0.5Totaladjustments 2.0 (1.4)Taxeffectofadjustments (0.4) 0.2Adjustednetloss (17.1) (13.3)

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(a) InconnectionwiththeSecondaryOfferingsinJune2018andJuly2017,weincurredexpensesrelatedtoprofessionalfees,consulting,legal,andaccountingthatwouldotherwisenothavebeenincurred.Thesefeesarereflectedinthetableabove,anddonotreflectexpectedfutureoperatingexpensesaftercompletionoftheseactivities.

(b) Represents non-cash unrealized gains and losses on the translation of the TermLoanFacility fromUSDto CAD, net of the effect ofderivativetransactionsenteredintotohedgeaportionoftheexposuretoforeigncurrencyexchangerisk.

(c) Representsnon-cashshare-basedcompensationexpenseonstockoptionsissuedpriortotheIPOunderourpre-IPOoptionplan.

(d) Representsnon-cashleaseamortizationchargesduringpre-openingperiodsfornewstoreleases.

(e) InconnectionwithBainCapital’spurchaseofa70%equityinterestinourbusinessonDecember9,2013,werecognizedanintangibleassetforcustomerlistsintheamountof$8.7million,whichhadausefullifeoffouryearsandwasfullyamortizedinthethirdquarteroffiscal2018.

Contacts

Investors:

[email protected]

Media:

[email protected]

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