Canada Goose Holdings Inc. (GOOS) saw its stock plummet 6.2% in pre-market trading on Thursday, following the company's fiscal third-quarter 2025 earnings release. The luxury apparel maker reported weaker-than-expected revenue and lowered its full-year guidance, reflecting the challenges in navigating the global luxury demand slowdown.

For the third quarter ended December 29, 2024, Canada Goose posted revenue of C$607.9 million, missing analysts' estimates of C$620.9 million. The revenue miss was primarily driven by softening demand in the company's direct-to-consumer (DTC) and wholesale channels, particularly in the Greater China and EMEA regions.

While Canada Goose's gross profit increased 0.5% to C$452.0 million and operating income rose to C$204.3 million, the company cut its full-year fiscal 2025 guidance for revenue growth and adjusted net income per diluted share. Canada Goose cited trends in global luxury consumer spending and an increase in marketing investments as reasons for the guidance reduction.

The company now expects a low-single-digit increase to a low-single-digit decrease in revenue growth for fiscal 2025, compared to its previous outlook of a low-single-digit increase to a low-single-digit decrease. Additionally, Canada Goose lowered its adjusted net income per diluted share growth forecast to a low-single-digit increase to flat, down from its prior mid-single-digit increase projection.

The disappointing results and guidance underscore the challenges Canada Goose is facing in navigating the current macroeconomic environment and global luxury demand slowdown, especially in key markets like China. The stock's plunge in pre-market trading reflects investors' concerns about the company's ability to maintain its growth momentum amid these headwinds.