England women lost 26-7 against New Zealand in their second match of the Rugby Super Series in Alberta.
The world champions beat the USA 39-13 in the opening game of the tournament, running in seven tries.
But they managed only a single try against the Black Ferns, with Alexandra Matthews going over in the first half.
Victoria Subritzky-Nafatali and Selica Winiata crossed for New Zealand, while Kendra Cocksedge landed four penalties and two conversions.
England’s final game takes place on 6 July (01:30 BST) against hosts Canada, who they beat in the World Cup final in August 2014.