canada goose business plan

More From Forbes

The profitable path: canada goose’s unique journey in the direct-to-consumer landscape.

• Share to Facebook
• Share to Twitter
• Share to Linkedin

Canada Goose opened its Las Vegas store earlier this year at The Shops at Crystals.

Unlike other DTC brands today, Canada Goose started as a manufacturer and owns and runs the majority of the factories that produce its products. Tech companies like Tesla and Shopify have normalized a lack of profit, making growth an arguably more favorable success indicator. However, as the economy has shifted and bankruptcies ensued, the value of profit to shareholders, especially amongst direct-to-consumer (DTC) brands, is likely increasing, making Canada Goose a profitable and growing retailer, a unique DTC retailer.

In the past few years, many DTC brands that have yet to reach profitability, like Casper, Warby Parker, Allbirds, and Stich Fix, have struggled on the public market. However, at the end of its fiscal year in April 2023, Canada Goose had a revenue of about $900 million ($1.2 billion CAD), up 10.8% from the year prior, and its market cap today is about $1.6 billion. For reference, Warby Parker has a market cap of $1.45 billion and ended this year with a revenue of $598 million, up about 10.6% from the previous year. These brands are very different but share similar valuations, but what Canada Goose is doing with its DTC channel makes it uniquely successful.

Staying True To Its Roots.

Canada Goose opened its new headquarters in Toronto's Queens Quay East in July 2023.

"We consider ourselves the only Canadian luxury apparel brand. So, we knew we had to do something representing and reflecting that specialness. So when you go into our stores, and you see that Inuit art, that was very purposeful for us to say we don't want just to be a store with walls - we want it to be a place you learn something about not even our brand, necessarily, but something about that artist or our relationship to the north, which is super important to us," shared Carrie Baker, President of Canada Goose.

The Canada Goose products are made across various factories, seven of which are in Canada. Inside its original Toronto factory sits over 320 employees and their sewing machines, each dedicated to a different aspect of a product. For instance, one person may sew pockets, while another will add the down filling. But all are handcrafted and thoroughly inspected.

Best Travel Insurance Companies

Best covid-19 travel insurance plans.

Canada Goose was born in Toronto, and it's made an effort to stay there, despite the enticing cost benefits of manufacturing abroad; 75% of its products are still produced in Canada. It also recently showed further dedication to its home by moving its more than 500-person headquarters to Toronto's waterfront, with a view of Lake Ontario, designed with Canada in mind by M Moser Associates.

Meanwhile, direct competitors like The North Face have evolved over the years. At one point, it had that edge similar to Canada Goose and even pursued streetwear partnerships with celebrities. But, more recently, it moved its headquarters to Denver from San Francisco, leaving the home of its establishment.

The company's original factory is located in north Toronto and is home to about 320 employees.

Balancing The Consumer And The Business.

A company cannot be solely focused on its numbers at the cost of experience, especially in today's retail world, where consumers expect quality experiences, both online and in-store.

"We're performance luxury, we're always talking about the product's function first, but we're also very inclusive. We want a warm welcome; we want someone to leave better than when they came in, whether they're more knowledgeable or more familiar with the brand, or they just had a great experience with one of our ambassadors," stated Baker.

In 2018, Canada Goose launched its first experiential store where consumers could try the parkas in a cold room. Unlike some other brands, the experiential aspect was necessary for shoppers to trust the product and to feel confident it would keep them warm. Arc'teryx , a competitor, also adopted this in some of its stores; its first global flagship, which opened in 2020 in Shanghai, featured a "rain room," allowing customers to test the features of the GORE-TEX products.

The Cold Room is a feature located in various Canada Goose stores, including South Coast Plaza, ... [+] allowing shoppers to experience the functionality of the product.

Another recent initiative of Canada Goose was adding a resale platform called Generations . From a consumer standpoint, this shows sustainability commitment, something it's been criticized for in the past leading it to stop using fur . And from a financial perspective, it recaptures consumers and introduces a new revenue stream. Resale has become relatively common, with Patagonia being one of the first outdoor brands to launch a program.

Increasing The Store Channel

Canada Goose has 55 stores globally, aiming to almost triple its store count by 2028. This year it continues its expansion in the US and is adding Australia to its list. Its growth in the US includes nine new locations, one of which is a pop-up in Anchorage, Alaska's 5 th Ave Mall. The company is known to attract luxury, usually tourist consumers, but it still serves that more industrial extreme cold-weather shopper – the shopper this new pop-up aims to attract.

Beyond its pure store expansion, the brand has begun to see the value of its stores as more than an experiential touchpoint. 70% of its revenue currently comes from its 55 stores, despite the first opening about six and a half years ago.

Inuit art is an important design element across all Canada Goose stores.

"When we go into malls or areas where other people are selling us, everyone tends to get a lift, usually single or low double digits" shared Baker, adding that "this is where the curated assortment comes into it. It's key because we can't all be offering the same thing and expect to grow, but if we carefully choose who gets exclusives amongst our wholesale partners, they [the channels] complement each other." The merchandising aspect of channels is another element vital to a successful omnichannel strategy. The brand recently partnered with Fred Segal, its exclusive wholesale partner for its Rokh and Matt McCormick collection that launches in early September.

Canada Goose is a brand with a lot of history, and it continues to stay true to those roots while drawing a modern customer with its newer products and experiences. Financially, it stands out, but it still has the opportunity to grow at a higher rate and improve its cash flow (which was impacted last year primarily due to Covid-19 in Asia). However, it appears to be on the right track with its significant store growth plans and introduction of various new product lines.

• Editorial Standards
• Reprints & Permissions

Canada Goose Presents Its Updated Strategic Growth Plan and Five-Year Financial Outlook

Author of the article:

You can save this article by registering for free here . Or sign-in if you have an account.

Article content

TORONTO — Canada Goose Holdings Inc. (“Canada Goose” or the “Company”) (NYSE: GOOS, TSX: GOOS) will host an Investor Day today, February 7, 2023 at the Company’s headquarters in Toronto. In conjunction with the event, the Company is announcing five-year financial targets and providing an update on its strategic priorities.

Canada Goose Presents Its Updated Strategic Growth Plan and Five-Year Financial Outlook Back to video

“Today, Canada Goose is recognized around the world as a performance luxury lifestyle brand, known as a global leader in warmth and protection. Our products are iconic, our style is enduring and our brand has never been stronger. Looking ahead, we see incredible opportunity to continue the revenue growth trajectory we have experienced since the time of our IPO and deliver increasing rates of profitability.” said Dani Reiss, Chairman and CEO.

Subscribe now to read the latest news in your city and across Canada.

• Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, Victoria Wells and others.
• Daily content from Financial Times, the world's leading global business publication.
• Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
• National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
• Daily puzzles, including the New York Times Crossword.

Create an account or sign in to continue with your reading experience.

• Access articles from across Canada with one account.
• Share your thoughts and join the conversation in the comments.
• Enjoy additional articles per month.
• Get email updates from your favourite authors.

Sign In or Create an Account

“As we grow, we will expand our categories, geographies and capabilities with a keen eye towards investing where we see a high return, protecting our brand and delivering high quality, profitable growth,” Mr. Reiss continued, “As I look at the next five years, I am confident in our long-term financial plan, introduced today, to reach $3 billion in revenue, and an adjusted EBIT margin of 30% 1 through the execution of our three strategic growth pillars.”

As part of its strategic plan, the Company intends to execute on the following three strategic growth pillars:

• Accelerate Consumer Focused Growth : We have significant opportunity to grow lifetime value of our longstanding and new customers with a focus on women and Gen Z.
• Build our DTC Network : We expect to more than double our retail footprint from the 51 permanent stores at the end of Q3 fiscal 2023 while continuing to grow our digital presence, both through Omnichannel and online. We see opportunity in new markets around the world and expect to increase our DTC penetration within existing markets and will evolve our distribution structure in others.
• Create New and Expand Existing Categories, rapidly: We intend to deliver year-round relevance consistent with Canada Goose’s position as a performance luxury lifestyle brand. We expect continued growth in all categories including in heavyweight and lightweight down and accelerated growth of newer categories such as rainwear, apparel and footwear as well as the addition of further categories including eyewear, luggage and home.

Long-Term Financial Outlook

In fiscal 2028, the Company expects to achieve:

• Revenue of $3 billion representing a CAGR of approximately 20%, in line with the historical performance for revenue CAGR from fiscal 2017, during which the company completed its IPO, through its expected revenue of between $1.175 billion and $1.195 billion in fiscal 2023. This growth is expected to be driven by the acceleration of the consumer-focused growth initiatives, the buildout of the DTC network and the creation of new and more rapid expansion of existing categories as described above. Across geographies, the Company’s strategy is focused on continuing on the luxury trajectory path with growth moving regional revenue as a percentage of total towards an equitable split between North America, EMEA 2 and Asia-Pacific.
• 30% adjusted EBIT margin 3 : The Company’s adjusted EBIT margin target is expected to be delivered through the disciplined execution of its strategy, which actively balances headwinds and tailwinds to maintain gross margin, which is anticipated to continue to benefit from favorable channel mix, pricing and leverage of manufacturing overhead. Selling, General and Administrative expenses (“SG&A”) are expected to leverage from increasing scale and the Company’s proactive approach to invest ahead of growth. The expense structure is also expected to benefit from actions being taken to increase efficiencies and reduce direct costs of goods, improve sourcing costs and leverage technology, among other initiatives. Taken together, the Company expects to achieve $150 million in saved and avoided operating costs by the end of fiscal 2028 while focusing increased spend on the expansion of new categories and business initiatives.

Get the latest headlines, breaking news and columns.

• There was an error, please provide a valid email address.

By signing up you consent to receive the above newsletter from Postmedia Network Inc.

A welcome email is on its way. If you don't see it, please check your junk folder.

The next issue of Top Stories will soon be in your inbox.

We encountered an issue signing you up. Please try again

Within the meaning of applicable securities laws, the foregoing financial outlook for the Company’s ongoing 2023 fiscal year and financial guidance for the Company’s 2028 fiscal year and related long-term targets constitute “financial outlook” and “forward-looking information”. The purpose of this financial outlook is to provide a description of management’s expectations regarding the Company’s annual and long-term financial performance and may not be appropriate for other purposes. Actual results could vary materially as a result of numerous factors, including the risk factors referenced below under “Forward-Looking Information”.

Assumptions

The financial outlook for fiscal 2028 and related long-term targets are based on the following key assumptions for the period from the end of fiscal 2023 to the end of fiscal 2028, among others:

• The assumptions discussed above in relation to our long-term targets and strategic growth pillars, including our ability to realize on the initiatives noted therein
• Our ability to increase permanent retail store count to between 130 and 150 with growth across Asia Pacific, EMEA and North America
• Our ability to increase store productivity and e-Commerce sales with year-round product assortments, pricing and an elevated retail and digital experience
• Our ability to optimize wholesale and other distribution, including the introduction of travel retail and the buyback of key distributor markets
• DTC revenue representing approximately 80% of total revenue in fiscal 2028
• Our ability to achieve and maintain DTC gross margin in the mid 70% range and Wholesale gross margin in the mid to high 40% range with heavy weight down, light weight down and other product categories representing approximately 50%, 25% and 25% of revenue, respectively, in fiscal 2028
• SG&A costs decreasing to approximately 40% of revenue with marketing costs increasing slightly faster than revenue as the Company generates more efficiency from its overhead costs and improves store productivity
• Taxation rates consistent with historical levels
• No material fluctuations in foreign exchange rates relative to current levels

The Company’s outlook is based on its best assessment of the current macroeconomic environment, including ongoing global supply chain and inflationary pressures, foreign currency volatility, the war in Ukraine, COVID-19 variants and other COVID-related disruptions. Over the course of its long-term outlook, the Company expects the recovery of retail environment strength to pre-pandemic levels, decrease in inflationary pressures to normalized levels and stability of other economic factors in the regions in which the Company operates.

The financial outlook for fiscal 2028 and related long-term targets also incorporate the Company’s previously announced fiscal 2023 financial outlook. Please refer to the press release issued on February 2, 2023 under “Full Year Fiscal 2023 Outlook” for a description of the material factors and assumptions used to develop financial outlook for the Company’s ongoing 2023 fiscal year.

The financial outlook for the Company’s ongoing 2023 fiscal year and financial outlook for the Company’s 2028 fiscal year and related long-term targets excludes certain anticipated restructuring related and other net charges as described under (or as incorporated by reference under) “Non-IFRS Financial Measures and Other Specified Financial Measures”.

Investor Day Webcast

The investor meeting will be streamed live and can be accessed on the Company’s Investor Relations website at http://investor.canadagoose.com beginning at 10 A.M. Eastern Standard Time on Tuesday, February 7, 2023. A replay of the event and presentation materials will be available on the website for approximately one year after the event. The Company will present its strategic growth plan, and several members of management will speak including:

Dani Reiss, Chairman and CEO; Penny Brook, Chief Marketing and Experience Officer; Carrie Baker, President; Paul Cadman, President Asia Pacific; Ana Mihaljevic, President North America and Executive Vice President Sales Operations and Planning; Woody Blackford, Chief Product Officer; John Moran, Chief Operating Officer; and Jonathan Sinclair, Executive Vice President and Chief Financial Officer.

About Canada Goose

Founded in 1957 in a small warehouse in Toronto, Canada, Canada Goose (NYSE:GOOS, TSX:GOOS) is a lifestyle brand and a leading manufacturer of performance luxury apparel. Every collection is informed by the rugged demands of the Arctic, ensuring a legacy of functionality is embedded in every product from parkas and rainwear to apparel and accessories. Canada Goose is inspired by relentless innovation and uncompromised craftsmanship, recognized as a leader for its Made in Canada commitment. In 2020, Canada Goose announced HUMANATURE, its purpose platform that unites its sustainability and values-based initiatives, reinforcing its commitment to keep the planet cold and the people on it warm. Canada Goose also owns Baffin, a Canadian designer and manufacturer of performance outdoor and industrial footwear. Visit www.canadagoose.com for more information.

Forward-Looking Information

This press release contains forward-looking statements, including statements that refer to expectations, intentions, projections or other characterization of future events or circumstances contained in this press release. These statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Forward-looking statements can be identified by words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “predict,” “project,” “potential,” “should,” “will,” “would,” and other similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. They appear in many places throughout this press release and include statements regarding our intentions, beliefs, or current expectations concerning, among other things, our results of operations, financial condition, business prospects, expectations regarding industry trends and the size and growth rates of addressable markets, our business plan, and our growth strategies, including plans for expansion to new markets and new products and expectations for seasonal trends. The financial outlook for the Company’s ongoing 2023 fiscal year and financial outlook for the Company’s 2028 fiscal year and related long-term targets also constitute forward-looking information as described above under “Long-Term Financial Outlook”.

Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Certain assumptions made in preparing the forward-looking statements contained in this press release include: our ability to continue operating our business amid the societal, political, and economic disruption caused by the ongoing COVID-19 pandemic and recent and ongoing geopolitical events; limited disruption to our DTC channel, including store closures, however caused, including due to recent and ongoing geopolitical events, the COVID-19 pandemic and economic disruptions or other events; our ability to implement our growth strategies; our ability to maintain strong business relationships with our customers, suppliers, wholesalers, and distributors; our ability to keep pace with changing consumer preferences; our ability to protect our intellectual property; and the continued absence of material global supply chain disruptions to our business and ability to fulfill demand and maintain sufficient inventory levels, which we continue to monitor; and the absence of material adverse changes in our industry or the global economy. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We believe that these risks and uncertainties include, but are not limited to, those described in the “Risk Factors” section of our Annual Report on Form 20-F for the year ended April 3, 2022 and those referred to under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Factors Affecting our Performance” in our Management’s discussion and analysis of financial condition and results of operations for the third and three quarters ended January 1, 2023 (“Q3 2023 MD&A”). These risks are not exhaustive and other unknown and unpredictable factors could also have a material adverse effect on the performance or results of the Company.

Although we base the forward-looking statements contained in this press release on assumptions that we believe are reasonable, we caution readers that actual results and developments (including our results of operations, financial condition and liquidity, and the development of the industry in which we operate) may differ materially from those made in or suggested by the forward-looking statements contained in this press release. Additional impacts may arise that we are not aware of currently. The potential of such additional impacts intensifies the business and operating risks which we face, and these should be considered when reading the forward-looking statements contained in this press release. In addition, even if results and developments are consistent with the forward-looking statements contained in this press release, those results and developments may not be indicative of results or developments in subsequent periods. As a result, any or all of our forward-looking statements in this press release may prove to be inaccurate. No forward-looking statement is a guarantee of future results. Moreover, we operate in a highly competitive and rapidly changing environment in which new risks often emerge. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements. You should read this press release and the documents that we reference herein completely and with the understanding that our actual future results may be materially different from what we expect. The forward-looking statements contained herein are made as of the date of this press release (or as of the date specifically indicated), and we do not assume any obligation to update any forward-looking statements except as required by applicable laws. For greater certainty, references herein to “forward-looking statements” include “forward-looking information” within the meaning of Canadian securities laws.

Non-IFRS Financial Measures and Other Specified Financial Measures

This press release includes certain financial measures that are “non-IFRS financial measures” and certain financial measures that are “non-IFRS ratios”, including adjusted EBIT margin. These financial measures are employed by the Company to measure its operating and economic performance and to assist in business decision-making, as well as providing key performance information to senior management. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors and analysts use this information to evaluate the Company’s operating and financial performance. These financial measures are not defined under IFRS nor do they replace or supersede any standardized measure under IFRS. Other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures.

Additional information including definitions of non-IFRS financial measures and other specified financial measures and reconciliations of non-IFRS financial measures to the nearest IFRS measure can be found under the heading “Non-IFRS Financial Measures and Other Specified Financial Measures” in our Q3 2023 MD&A, as filed on SEDAR at www.sedar.com and with the SEC at www.sec.gov , which section is incorporated by reference in this press release.

The Company is not able to provide, without unreasonable effort, a reconciliation of the guidance for non-IFRS adjusted EBIT to net income, the most directly comparable IFRS measure, because the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments included in the most directly comparable IFRS measure that would be necessary for such reconciliations, including (a) income tax related accruals in respect of certain one-time items (b) the impact of foreign currency exchange and (c) non-recurring expenses that cannot reasonably be estimated in advance. These adjustments are inherently variable and uncertain and depend on various factors that are beyond the Company’s control and as a result it is also unable to predict their probable significance. Therefore, because management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results in accordance with IFRS, it is unable to provide a reconciliation of the non-IFRS measures included in the forward-looking guidance included herein.

1 See “Non-IFRS Financial Measures and Other Specified Financial Measures”. Operating income as a percentage of revenue was 14.3% for the fiscal year ended April 3, 2022 2 EMEA comprises Europe, the Middle East, Africa and Latin America 3 See “Non-IFRS Financial Measures and Other Specified Financial Measures”. Operating income as a percentage of revenue was 14.3% for the fiscal year ended April 3, 2022.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230207005261/en/

Investors: [email protected]

Media: [email protected]

Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.

TD Bank says deep rate cuts will provide 'big tailwind' to Canada's economy

Westjet to start cancelling flights thursday as mechanics' strike looms, inflation heats up again, casting doubt on bank of canada rate cut in july, picking battery plants to solve canada's productivity crisis 'dangerous road,' report says, slate office reit faces $158m debt default amid challenging market conditions.

This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here . By continuing to use our site, you agree to our Terms of Service and Privacy Policy .

You've reached the 20 article limit.

You can manage saved articles in your account.

and save up to 100 articles!

Looks like you've reached your saved article limit!

You can manage your saved articles in your account and clicking the X located at the bottom right of the article.

Today's Digital Daily

site categories

Parent item expand the sub menu, viktor & rolf couture taps into ‘child’s play’, the best street style at paris couture week, levi’s ceo looks to win with women’s and dtc, canada goose sets five-year plan with more stores.

The luxury parka-maker is set to add new categories, like home, while doubling its store count.

Deputy Managing Editor

• Share this article on Facebook
• Share this article on X
• Share this article on Flipboard
• Share this article on Pin It
• Share this article on Tumblr
• Share this article on Reddit
• Share this article on LinkedIn
• Share this article on WhatsApp
• Share this article on Email
• Print this article
• Share this article on Talk

Dani Reiss has his sights set on bringing a lot more Canada Goose to the world — with a little more of everything, from stores to product categories. 

In Canada Goose Holdings’ first investor day since its 2017 IPO, the president and chief executive officer laid out plans to grow revenues to 3 billion Canadian dollars in fiscal 2028, up from the nearly 1.2 billion Canadian dollars expected in the fiscal year ending in April 2. 

Related Articles

Department stores ranked by sales, exclusive: former nba star dwyane wade is selling his designer wardrobe on the realreal, you may also like.

“We are a brand like no other Canadian-based and -built in the European style of iconic luxury brands,” Reiss said. “We take annual price increases and we don’t have discounts. Our supply chain is vertically integrated. Our [direct-to-consumer] margins reflect that we control our distribution and we create icons….My vision for this brand was to take the decades of experience that we had in making the warmest outdoor [gear] in the world and to create a luxury consumer brand. We didn’t realize at the time how daring that vision was.” 

It’s an approach that had the brand keep its manufacturing in Canada and, with others like Moncler, refashion what was the relatively sleepy outerwear category.

Now, the company sells in 62 countries with more than 1,500 wholesale accounts and 51 stores. 

To realize the next leg of growth, Reiss said Canada Goose would: 

• accelerate its “consumer-focused growth” by building deeper relationships with customers, growing their lifetime value to the brand and expanding with women shoppers and Gen Z;
• more than double the brand’s retail footprint while also growing the digital side of the business, and  
• expand into new categories while growing in the existing offering. That means more heavyweight and lightweight down and quicker growth in apparel, rainwear and footwear as well as the addition of eyewear, luggage and home.

“It’s important to note that, as we execute against our strategic growth levers, that we do so responsibly,” Reiss said. “We will focus on investing where we see high return, protecting our brand and delivering high-quality profitable growth, just as we have since our IPO through the pandemic.”

The plan has Canada Goose’s revenues continuing to grow at a compound annual growth rate of about 20 percent as regional sales balance out with an “equitable split” between the North American region, Europe, the Middle East and Africa, and the Asia Pacific area. 

Adjusted earnings before interest and taxes are slated to stand at 30 percent in 2028. That marks a big swing up from the expected EBIT margins of 14.2 percent to 15.3 percent for the year ending in April, an outlook that assumes heavy strategic investments in leadership hires, digital and strategic initiatives.

Sign up for WWD news straight to your inbox every day

WWD Recommends

Behind the scenes with ‘the fire inside’ star ryan destiny before the dior couture show.

• By Leigh Nordstrom

Anthony Ramos Gets Nostalgic with ‘Twister’ Sequel

• By Kristen Tauer

Kristen Wiig Talks ‘Palm Royale,’ Comedy and Divine Timing

Margaret qualley talks about the ‘impact’ of her character’s wardrobe in ‘kinds of kindness’.

WWD and Women's Wear Daily are part of Penske Media Corporation. © 2024 Fairchild Publishing, LLC. All Rights Reserved.

Fashion Expand fashion menu

• Fashion Trends
• Fashion Features
• Fashion Scoops
• Designer & Luxury
• Ready-To-Wear
• Accessories

Business Expand business menu

• Government & Trade
• Mergers & Acquisitions
• Marketing & Promotion
• Human Resources
• Business Features
• Real Estate

Beauty Expand beauty menu

• Beauty Features

Men's Expand mens menu

• Mens Accessories
• Mens Clothing Furnishings
• Mens Designer Luxury
• Mens Lifestyle
• Mens Retail Business
• Mens Sportswear
• Mens Fashion

Runway Expand runway menu

• Men’s Fall 2024
• Pre-Fall 2024
• Spring Ready-to-Wear 2024
• Fall Couture 2023
• Resort 2024

Denim Expand denim menu

Sustainability expand sustainability menu.

• Environment
• Social Impact

Home/Design Expand home-design menu

• Interior Design
• Architecture

WWD Weekend Expand wwd-weekend menu

Events expand events menu, eye expand eye menu.

• Celebrity Real Estate

Shop Expand shop menu

More expand more menu.

• Fairchild Live
• RetailRx Community

Verify it's you

Please log in.

Canada Goose outlines new goals as it reports $5-million fourth-quarter profit

Canada Goose products at a store in Montreal, on Nov. 24, 2023. Ryan Remiorz/The Canadian Press

The chief executive of Canada Goose Holdings Inc. GOOS-T says the luxury parka maker’s last fiscal year showed him the company has “more work to do,” in part because it was trying to accomplish too much all at once.

“We didn’t make as much financial progress as we would have liked,” Dani Reiss told a conference call with financial analysts Thursday.

“Some of this was due to external factors outside of our control such as the ongoing challenging consumer environment and the warm winter.

“But after a period of rapid growth and retail expansion, we also recognize that our resources were spread across too many priorities, impacting our ability to deliver our ambitious near- and long-term targets,” Mr. Reiss said.

The comments came as Canada Goose reported net income attributable to shareholders of $5-million or five cents a diluted share for its fourth quarter compared with a loss of $3.1-million or three cents a diluted share a year earlier. Revenue for the quarter ended March 31 totalled $358-million, up from $293.2-million in the same quarter last year.

On an adjusted basis, Canada Goose said it earned 19 cents a diluted share in its latest quarter, up from an adjusted profit of 13 cents a diluted share a year earlier.

Shares in the company rose $2.68 or more than 17 per cent to $18.20 in late-morning trading after the report.

On the product front, Canada Goose’s president of brand commercial said the company would keep working to be the “brand of choice beyond the parka.”

“Canada Goose is globally renowned for warmth and outer wear. Our opportunity and our aspirations, however, are much bigger,” Carrie Baker said on the same call as Mr. Reiss.

The company began selling and marketing more heavily its lightweight puffers, sweaters, wind and rain wear and its shoes in recent years.

Now, Ms. Baker said it will look to make “more significant strides on the style spectrum while retaining our heritage” and “more tightly curate our social media content to beef up our celebrity and influencer programs.”

Canada Goose named famed fashion director Haider Ackermann as its first creative director on Wednesday. His first piece for the brand is a limited-edition hoodie that was modelled by actress Jane Fonda and will be sold with proceeds funnelled to the Polar Bears International.

Mr. Ackerman’s first seasonal capsule collection will launch in fall/winter 2024.

To “get more out of the store network” and refine the company’s luxury experience, Ms. Baker said Canada Goose will also slow the pace of new store openings, better balance team schedules with traffic levels and optimize their replenishment process.

The company’s final goal – simplifying its business – is based on “fewer people working more effectively on fewer priorities,” said Beth Clymer, Canada Goose’s president of finance, strategy and administration.

The company laid off 17 per cent of its global corporate work force in March and through combining teams working on “overlapping tasks,” it eliminated more than 25 per cent of senior management roles, Ms. Clymer said.

The company also scraped meetings they found were unnecessary and killed reports “that took time but weren’t being used to drive the business.”

It will continue to scrutinize these areas in fiscal 2023, when it expects its total revenue to be in the low-single-digits year-over-year. It also expects its adjusted net income per diluted share for the full year to grow by a midteen percentage compared with a year earlier.

Report an editorial error

Report a technical issue

Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 26/06/24 4:00pm EDT .

Follow related authors and topics

• Canada Goose Holdings Inc. Follow You must be logged in to follow. Log In Create free account
• China Follow You must be logged in to follow. Log In Create free account
• Ontario Follow You must be logged in to follow. Log In Create free account
• Revenue Follow You must be logged in to follow. Log In Create free account
• United States Follow You must be logged in to follow. Log In Create free account

Authors and topics you follow will be added to your personal news feed in Following .

Interact with The Globe

Canada Goose plotting retail expansion with new five-year plan

Luxury outerwear brand Canada Goose has announced a strategic five-year growth plan to double its retail footprint, expand existing categories, and create new opportunities such as homeware, to reach 3 billion Canadian dollars in annual revenue by 2028.

In a statement, Canada Goose said that its five-year plan centres around three growth pillars. The first is to accelerate consumer-focused growth, by growing the “lifetime value” of the brand’s longstanding and new customers with a focus on women and Gen Z.

The next target area is to build its direct-to-consumer (DTC) network by more than doubling its store count from its current 51 permanent locations by the end of Q3 of fiscal year 2023. This growth in retail footprint will be alongside growing its digital presence, both through omnichannel and online. Canada Goose added that it sees opportunities in new markets around the world to increase its DTC, as well as existing markets.

The final focus will be “rapidly” creating new and expanding existing categories as it looks to deliver “year-round relevance” to position itself as a performance luxury lifestyle brand. Canada Goose adds that it is expecting continued growth in all categories including in heavyweight and lightweight down and accelerating growth in newer categories such as rainwear, apparel and footwear. The brand is also looking to add further categories such as eyewear, luggage and home.

Canada Goose targets 3 billion Canadian dollars in annual revenue by 2028

Dani Reiss, chairman and chief executive at Canada Goose, said in a statement: “Today, Canada Goose is recognised around the world as a performance luxury lifestyle brand, known as a global leader in warmth and protection. Our products are iconic, our style is enduring, and our brand has never been stronger. Looking ahead, we see an incredible opportunity to continue the revenue growth trajectory we have experienced since the time of our IPO and deliver increasing rates of profitability.

“As we grow, we will expand our categories, geographies and capabilities with a keen eye towards investing where we see a high return, protecting our brand and delivering high quality, profitable growth.”

These three growth pillars will assist the brand in achieving 3 billion Canadian dollars in annual revenue by 2028, adds the company, by growing at a compound annual growth rate of about 20 percent.

Canada Goose said that the strategy will also focus on continuing its luxury trajectory path globally towards an “equitable split” between North America, Europe, the Middle East and Africa, and the Asia Pacific regions.

Reiss added: “As I look at the next five years, I am confident in our long-term financial plan, introduced today, to reach 3 billion Canadian dollars in revenue, and an adjusted EBIT margin of 30 percent through the execution of our three strategic growth pillars.”

English (USA)

English (UK)

English (Canada)

English (India)

Deutsch (Deutschland)

Deutsch (Österreich)

Deutsch (Schweiz)

Français (France)

Français (Suisse)

Nederlands (Nederland)

Nederlands (België)

• Top Capitalization
• United States
• North America
• Middle East
• Sector Research
• Earnings Calendar
• Equities Analysis
• Most popular
• NVIDIA CORPORATION
• AMD (ADVANCED MICRO DEVICES)
• EUROFINS SCIENTIFIC SE
• MICROSOFT CORPORATION
• NIPPON ACTIVE VALUE FUND PLC
• AMAZON.COM, INC.
• Index Analysis
• Indexes News
• EURO STOXX 50
• Currency Cross Rate
• Currency Converter
• Forex Analysis
• Currencies News
• Precious metals
• Agriculture
• Industrial Metals
• Livestock and Cattle
• CRUDE OIL (WTI)
• CRUDE OIL (BRENT)

• Courbe des taux (Yield Curve)
• Developed Nations
• Emerging Countries
• South America
• Analyst Reco.
• Capital Markets Transactions
• New Contracts
• Profit Warnings
• Appointments
• Press Releases
• Security Transactions
• Earnings reports
• New markets
• New products
• Corporate strategies
• Legal risks
• Share buybacks
• Mergers and acquisitions
• Call Transcripts
• Currency / Forex
• Commodities
• Cryptocurrencies
• Interest Rates
• Asset Management
• Climate and ESG
• Cybersecurity
• Geopolitics
• Central Banks
• Private Equity
• Business Leaders
• All our articles
• Most Read News
• All Analysis
• Satirical Cartoon
• Today's Editorial
• Crypto Recap
• Behind the numbers
• All our investments
• Asia, Pacific
• Virtual Portfolios
• USA Portfolio
• European Portfolio
• Asian Portfolio
• My previous session
• My most visited
• Quality stocks at a reasonable price
• Quality stocks
• Momentum stocks
• Trend-Following Stocks
• E-Commerce & Logistics
• The Internet of Things
• Oligopolies
• Unusual volumes
• New Historical Highs
• New Historical Lows
• Top Fundamentals
• Sales growth
• Earnings Growth
• Profitability
• Rankings Valuation
• Enterprise value
• Top Consensus
• Analyst Opinion
• Target price
• Estimates Revisions
• Top ranking ESG
• Environment
• Visibility Ranking
• Stock Screener Home
• Gold and Silver
• Millennials
• Europe's family businesses
• Wind energy
• Oversold stocks
• Overbought stocks
• Close to resistance
• Close to support
• Accumulation Phases
• Most volatile stocks
• Top Investor Rating
• Top Trading Rating
• Top Dividends
• Low valuations
• All my stocks
• Stock Screener
• Stock Screener PRO
• Portfolio Creator
• Event Screener
• Dynamic Chart
• Economic Calendar
• Our subscriptions
• Our Stock Picks
• Thematic Investment Lists

Canada Goose Holdings Inc.

Ca1350861060, apparel & accessories.

• Canada Goose Presents Its Updated Strategic Growth Plan and Five-Year Financial Outlook

Canada Goose Holdings Inc. (“Canada Goose” or the “Company”) (NYSE: GOOS, TSX: GOOS) will host an Investor Day today, February 7, 2023 at the Company’s headquarters in Toronto. In conjunction with the event, the Company is announcing five-year financial targets and providing an update on its strategic priorities.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230207005261/en/

Canada Goose Presents Its Updated Strategic Growth Plan and Five-Year Financial Outlook (Photo: Business Wire)

“Today, Canada Goose is recognized around the world as a performance luxury lifestyle brand, known as a global leader in warmth and protection. Our products are iconic, our style is enduring and our brand has never been stronger. Looking ahead, we see incredible opportunity to continue the revenue growth trajectory we have experienced since the time of our IPO and deliver increasing rates of profitability.” said Dani Reiss, Chairman and CEO.

“As we grow, we will expand our categories, geographies and capabilities with a keen eye towards investing where we see a high return, protecting our brand and delivering high quality, profitable growth,” Mr. Reiss continued, “As I look at the next five years, I am confident in our long-term financial plan, introduced today, to reach $3 billion in revenue, and an adjusted EBIT margin of 30% 1 through the execution of our three strategic growth pillars.”

As part of its strategic plan, the Company intends to execute on the following three strategic growth pillars:

• Accelerate Consumer Focused Growth : We have significant opportunity to grow lifetime value of our longstanding and new customers with a focus on women and Gen Z.
• Build our DTC Network : We expect to more than double our retail footprint from the 51 permanent stores at the end of Q3 fiscal 2023 while continuing to grow our digital presence, both through Omnichannel and online. We see opportunity in new markets around the world and expect to increase our DTC penetration within existing markets and will evolve our distribution structure in others.
• Create New and Expand Existing Categories, rapidly: We intend to deliver year-round relevance consistent with Canada Goose’s position as a performance luxury lifestyle brand. We expect continued growth in all categories including in heavyweight and lightweight down and accelerated growth of newer categories such as rainwear, apparel and footwear as well as the addition of further categories including eyewear, luggage and home.

Long-Term Financial Outlook

In fiscal 2028, the Company expects to achieve:

• Revenue of $3 billion representing a CAGR of approximately 20%, in line with the historical performance for revenue CAGR from fiscal 2017, during which the company completed its IPO, through its expected revenue of between $1.175 billion and $1.195 billion in fiscal 2023. This growth is expected to be driven by the acceleration of the consumer-focused growth initiatives, the buildout of the DTC network and the creation of new and more rapid expansion of existing categories as described above. Across geographies, the Company’s strategy is focused on continuing on the luxury trajectory path with growth moving regional revenue as a percentage of total towards an equitable split between North America, EMEA 2 and Asia-Pacific.
• 30% adjusted EBIT margin 3 : The Company’s adjusted EBIT margin target is expected to be delivered through the disciplined execution of its strategy, which actively balances headwinds and tailwinds to maintain gross margin, which is anticipated to continue to benefit from favorable channel mix, pricing and leverage of manufacturing overhead. Selling, General and Administrative expenses (“SG&A”) are expected to leverage from increasing scale and the Company’s proactive approach to invest ahead of growth. The expense structure is also expected to benefit from actions being taken to increase efficiencies and reduce direct costs of goods, improve sourcing costs and leverage technology, among other initiatives. Taken together, the Company expects to achieve $150 million in saved and avoided operating costs by the end of fiscal 2028 while focusing increased spend on the expansion of new categories and business initiatives.

Within the meaning of applicable securities laws, the foregoing financial outlook for the Company’s ongoing 2023 fiscal year and financial guidance for the Company’s 2028 fiscal year and related long-term targets constitute “financial outlook” and “forward-looking information”. The purpose of this financial outlook is to provide a description of management's expectations regarding the Company's annual and long-term financial performance and may not be appropriate for other purposes. Actual results could vary materially as a result of numerous factors, including the risk factors referenced below under “Forward-Looking Information”.

Assumptions

The financial outlook for fiscal 2028 and related long-term targets are based on the following key assumptions for the period from the end of fiscal 2023 to the end of fiscal 2028, among others:

• The assumptions discussed above in relation to our long-term targets and strategic growth pillars, including our ability to realize on the initiatives noted therein
• Our ability to increase permanent retail store count to between 130 and 150 with growth across Asia Pacific, EMEA and North America
• Our ability to increase store productivity and e-Commerce sales with year-round product assortments, pricing and an elevated retail and digital experience
• Our ability to optimize wholesale and other distribution, including the introduction of travel retail and the buyback of key distributor markets
• DTC revenue representing approximately 80% of total revenue in fiscal 2028
• Our ability to achieve and maintain DTC gross margin in the mid 70% range and Wholesale gross margin in the mid to high 40% range with heavy weight down, light weight down and other product categories representing approximately 50%, 25% and 25% of revenue, respectively, in fiscal 2028
• SG&A costs decreasing to approximately 40% of revenue with marketing costs increasing slightly faster than revenue as the Company generates more efficiency from its overhead costs and improves store productivity
• Taxation rates consistent with historical levels
• No material fluctuations in foreign exchange rates relative to current levels

The Company’s outlook is based on its best assessment of the current macroeconomic environment, including ongoing global supply chain and inflationary pressures, foreign currency volatility, the war in Ukraine, COVID-19 variants and other COVID-related disruptions. Over the course of its long-term outlook, the Company expects the recovery of retail environment strength to pre-pandemic levels, decrease in inflationary pressures to normalized levels and stability of other economic factors in the regions in which the Company operates.

The financial outlook for fiscal 2028 and related long-term targets also incorporate the Company’s previously announced fiscal 2023 financial outlook. Please refer to the press release issued on February 2, 2023 under “Full Year Fiscal 2023 Outlook” for a description of the material factors and assumptions used to develop financial outlook for the Company’s ongoing 2023 fiscal year.

The financial outlook for the Company’s ongoing 2023 fiscal year and financial outlook for the Company’s 2028 fiscal year and related long-term targets excludes certain anticipated restructuring related and other net charges as described under (or as incorporated by reference under) “Non-IFRS Financial Measures and Other Specified Financial Measures”.

Investor Day Webcast

The investor meeting will be streamed live and can be accessed on the Company’s Investor Relations website at http://investor.canadagoose.com beginning at 10 A.M. Eastern Standard Time on Tuesday, February 7, 2023. A replay of the event and presentation materials will be available on the website for approximately one year after the event. The Company will present its strategic growth plan, and several members of management will speak including:

Dani Reiss, Chairman and CEO; Penny Brook, Chief Marketing and Experience Officer; Carrie Baker, President; Paul Cadman, President Asia Pacific; Ana Mihaljevic, President North America and Executive Vice President Sales Operations and Planning; Woody Blackford, Chief Product Officer; John Moran, Chief Operating Officer; and Jonathan Sinclair, Executive Vice President and Chief Financial Officer.

About Canada Goose

Founded in 1957 in a small warehouse in Toronto, Canada, Canada Goose (NYSE:GOOS, TSX:GOOS) is a lifestyle brand and a leading manufacturer of performance luxury apparel. Every collection is informed by the rugged demands of the Arctic, ensuring a legacy of functionality is embedded in every product from parkas and rainwear to apparel and accessories. Canada Goose is inspired by relentless innovation and uncompromised craftsmanship, recognized as a leader for its Made in Canada commitment. In 2020, Canada Goose announced HUMANATURE, its purpose platform that unites its sustainability and values-based initiatives, reinforcing its commitment to keep the planet cold and the people on it warm. Canada Goose also owns Baffin, a Canadian designer and manufacturer of performance outdoor and industrial footwear. Visit www.canadagoose.com for more information.

Forward-Looking Information

This press release contains forward-looking statements, including statements that refer to expectations, intentions, projections or other characterization of future events or circumstances contained in this press release. These statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Forward-looking statements can be identified by words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “predict,” “project,” “potential,” “should,” “will,” “would,” and other similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. They appear in many places throughout this press release and include statements regarding our intentions, beliefs, or current expectations concerning, among other things, our results of operations, financial condition, business prospects, expectations regarding industry trends and the size and growth rates of addressable markets, our business plan, and our growth strategies, including plans for expansion to new markets and new products and expectations for seasonal trends. The financial outlook for the Company’s ongoing 2023 fiscal year and financial outlook for the Company’s 2028 fiscal year and related long-term targets also constitute forward-looking information as described above under “Long-Term Financial Outlook”.

Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Certain assumptions made in preparing the forward-looking statements contained in this press release include: our ability to continue operating our business amid the societal, political, and economic disruption caused by the ongoing COVID-19 pandemic and recent and ongoing geopolitical events; limited disruption to our DTC channel, including store closures, however caused, including due to recent and ongoing geopolitical events, the COVID-19 pandemic and economic disruptions or other events; our ability to implement our growth strategies; our ability to maintain strong business relationships with our customers, suppliers, wholesalers, and distributors; our ability to keep pace with changing consumer preferences; our ability to protect our intellectual property; and the continued absence of material global supply chain disruptions to our business and ability to fulfill demand and maintain sufficient inventory levels, which we continue to monitor; and the absence of material adverse changes in our industry or the global economy. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We believe that these risks and uncertainties include, but are not limited to, those described in the “Risk Factors” section of our Annual Report on Form 20-F for the year ended April 3, 2022 and those referred to under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Factors Affecting our Performance” in our Management’s discussion and analysis of financial condition and results of operations for the third and three quarters ended January 1, 2023 (“Q3 2023 MD&A”). These risks are not exhaustive and other unknown and unpredictable factors could also have a material adverse effect on the performance or results of the Company.

Although we base the forward-looking statements contained in this press release on assumptions that we believe are reasonable, we caution readers that actual results and developments (including our results of operations, financial condition and liquidity, and the development of the industry in which we operate) may differ materially from those made in or suggested by the forward-looking statements contained in this press release. Additional impacts may arise that we are not aware of currently. The potential of such additional impacts intensifies the business and operating risks which we face, and these should be considered when reading the forward-looking statements contained in this press release. In addition, even if results and developments are consistent with the forward-looking statements contained in this press release, those results and developments may not be indicative of results or developments in subsequent periods. As a result, any or all of our forward-looking statements in this press release may prove to be inaccurate. No forward-looking statement is a guarantee of future results. Moreover, we operate in a highly competitive and rapidly changing environment in which new risks often emerge. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements. You should read this press release and the documents that we reference herein completely and with the understanding that our actual future results may be materially different from what we expect. The forward-looking statements contained herein are made as of the date of this press release (or as of the date specifically indicated), and we do not assume any obligation to update any forward-looking statements except as required by applicable laws. For greater certainty, references herein to “forward-looking statements” include “forward-looking information” within the meaning of Canadian securities laws.

Non-IFRS Financial Measures and Other Specified Financial Measures

This press release includes certain financial measures that are “non-IFRS financial measures” and certain financial measures that are “non-IFRS ratios”, including adjusted EBIT margin. These financial measures are employed by the Company to measure its operating and economic performance and to assist in business decision-making, as well as providing key performance information to senior management. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors and analysts use this information to evaluate the Company’s operating and financial performance. These financial measures are not defined under IFRS nor do they replace or supersede any standardized measure under IFRS. Other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures.

Additional information including definitions of non-IFRS financial measures and other specified financial measures and reconciliations of non-IFRS financial measures to the nearest IFRS measure can be found under the heading “Non-IFRS Financial Measures and Other Specified Financial Measures” in our Q3 2023 MD&A, as filed on SEDAR at www.sedar.com and with the SEC at www.sec.gov , which section is incorporated by reference in this press release.

The Company is not able to provide, without unreasonable effort, a reconciliation of the guidance for non-IFRS adjusted EBIT to net income, the most directly comparable IFRS measure, because the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments included in the most directly comparable IFRS measure that would be necessary for such reconciliations, including (a) income tax related accruals in respect of certain one-time items (b) the impact of foreign currency exchange and (c) non-recurring expenses that cannot reasonably be estimated in advance. These adjustments are inherently variable and uncertain and depend on various factors that are beyond the Company's control and as a result it is also unable to predict their probable significance. Therefore, because management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results in accordance with IFRS, it is unable to provide a reconciliation of the non-IFRS measures included in the forward-looking guidance included herein.

1 See “Non-IFRS Financial Measures and Other Specified Financial Measures”. Operating income as a percentage of revenue was 14.3% for the fiscal year ended April 3, 2022 2 EMEA comprises Europe, the Middle East, Africa and Latin America 3 See “Non-IFRS Financial Measures and Other Specified Financial Measures”. Operating income as a percentage of revenue was 14.3% for the fiscal year ended April 3, 2022.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230207005261/en/

Latest news about Canada Goose Holdings Inc.

Chart Canada Goose Holdings Inc.

Company Profile

Income statement evolution, ratings for canada goose holdings inc., analysts' consensus, eps revisions, quarterly earnings - rate of surprise, sector other apparel & accessories.

• Stock Market
• News Canada Goose Holdings Inc.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

News & Analysis

• Professional Exclusives
• The News in Brief
• Sustainability
• Direct-to-Consumer
• Global Markets
• Fashion Week
• Workplace & Talent
• Entrepreneurship
• Financial Markets
• Newsletters
• Case Studies
• Masterclasses
• Special Editions
• The State of Fashion
• Read Careers Advice
• BoF Professional
• BoF Careers
• BoF Insights
• Our Journalism
• Work With Us
• Read daily fashion news
• Download special reports
• Sign up for essential email briefings
• Follow topics of interest
• Receive event invitations
• Create job alerts

Canada Goose Plots China Expansion

TORONTO, Canada — Canada Goose is heading to China, opening two stores and a regional headquarters as it hopes to win over more luxury shoppers who desire the warmth and fashion cred of a $900 parka with the brand's patch on its sleeve.

Chief executive Dani Reiss said he’s making “significant investments” in China and outlined the coatmaker’s plan to open a Beijing flagship and a shop in Hong Kong this fall, along with an e-commerce business on Alibaba’s online Tmall. The Toronto-based company will partner with retail management firm ImagineX Group to help with operations, including staffing and daily administration.

“The opportunity for Canada Goose in China is massive,” Reiss said in a statement. “We have already seen exceptional demand from Chinese consumers — locally and internationally — for years.”

Canada Goose Holdings Inc., whose new China office will be in Shanghai, has been looking for new avenues of growth since going public in 2017. The high-end outerwear company wants to be known for more than just cold-weather gear, releasing such products as spring windbreakers and reflective raincoats. It already sells in China through wholesale distribution partners.

ADVERTISEMENT

Many luxury brands from North America and Europe are thriving in Asia due to Chinese consumers' newfound willingness to spend instead of save. Italian coatmaker Moncler , one of Canada Goose's biggest rivals, already has a significant presence in the region, with about 40 percent of its business coming from its Asia division.

Chinese consumers are becoming more amenable to legacy cold-weather brands as interest rises in winter sports and culture. Though there were only about 12.5 million skiers in China in 2015, the government has said it hopes to attract an additional 300 million non-skiers to mountain resorts and ski slopes. The 2022 Winter Olympics will be held in Beijing.

By Kim Bhasin; editors: Anne Riley Moffat and Mark Schoifet.

• Canada Goose
• Beijing, China

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

This Week: Waiting for the Shein IPO

The fast fashion giant is reportedly close to filing to go public in London, but faces doubts about its business and the political environment.

The Best of BoF 2023: Diversity’s Litmus Test

In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.

The Year Ahead: The Future of Fashion Deal-Making

For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.

Birkenstock Could Break Fashion’s IPO Logjam

A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

Our newsletters may include 3rd-party advertising, by subscribing you agree to the Terms and Conditions & Privacy Policy .

Our Products

• BoF Insights Opens in new window

eTail Toronto 2024

September 25 - 26, 2024

Hyatt Regency Toronto, ON

Canada Goose “Goes Retail” with Latest Marketing Strategy

It’s becoming something of a global phenomenon. Increasingly, more and more brands are deciding to spread their wings and “go retail”, either by opening online stores or, as is the case with Canada Goose , actual physical locations on the high street.

The world’s leading maker of Arctic luxury apparel opened its first two retail stores in the fall of 2016 – the first at Toronto’s Yorkdale mall, and a second in New York City. The move into bricks-and-mortar follows the successful launch of the company’s ecommerce site just twelve months previously – and it’s something that we’re seeing more and more of.

Nike, Apple, Amazon, Under Armour, Lindt & Sprungli – the list goes on and on. What’s perhaps most interesting to note, however, is the growing number of pure online players that are moving into the bricks-and-mortar space. Birchbox, Bonobos , and Warby Parker all come readily to mind when we think about such online-to-offline expansions .

The question, then, is what is the incentive for such wide-scale adoptions of the “going retail” strategy?

Why Go Retail?

For one thing, providing customers with a physical location in which they are able to shop, play, learn and develop an emotional connection with the brand is a pretty darn good reason in itself. Indeed, such opportunities are almost impossible to supply when dealing through online channels alone.

But, as the Elbetoft Group’s latest report – ‘ Brands Going Retail ’ – reveals, “going retail” offers brands many other significant benefits. When focussing on an in-store space, selling only a single brand of merchandise (their own), brands are finding that they have much more control over their marketing, their image, and the experiences of their shoppers.

In addition, brands with their own retail space find that they are able to sell a broader range of goods to customers and increase their margins. Data collection , new product testing, and greater independence from third-party retailers are also revealed as notable advantages.

A Marketing Investment

Canada Goose’s expansion into retail with just two stores signifies that the move isn’t simply about opening up a couple of new channels that will enable a few more sales. As Retail consultant Jim Danahy, CEO of CustomerLAB, observes , flagship stores are often used by manufacturers "in order to show the full array of products since many retailers don't carry the full array.”

He adds that “Time will tell whether [Canada Goose] are using bricks and mortar retail as a significant sales channel. When you only open a couple … that's more marketing than it is sales."

Indeed it is. As President and CEO Dani Reiss explains , the new stores are not meant to detract from the core model of the Canada Goose business.

“We’re a global brand. […] When we have these gathering places for Canada Goose fans, it builds and adds to the global halo of the brand. Wholesale is a very important part of our business, and it will continue to be important. But we are able to create the perfect experience and the perfect reflection of the Canada Goose brand.”

[Source: Canada Goose ( @canadagoose )]

The new stores serve to deliver an experiential environment featuring the company’s heritage and culture, a full assortment of all seasonal collections, and world-class service. They feature Arctic imagery as well as photographs and stories of the “Goose People” – the adventurers who act as spokespeople for the brand, lending authenticity to the overall brand message. Reiss says that he sees the stores as a marketing investment.

“We’re not looking to go to 150 stores tomorrow. We’re not becoming a retailer, specifically,” he said, though adding that the company does hope to open more in the future. “It will be important to open stores in places where there are large concentrations of Canada Goose fans … there are lots of potential markets for that.”

Spreading Those Retail Wings

Canada Goose is targeting three more stores in 2018, with the long-term goal being a network of around 15 to 20 stores. “We’re going to open stores in the best and biggest and most vibrant cities in the world,” Reiss said in the Financial Post , citing Tokyo and Paris as examples. “As we build the direct-to-consumers channel, as we lead with e-commerce, it’s also important to have some stores”.

Indeed, as Canada goose seeks to expand more internationally, the company has been spending a lot of extra dollars on marketing initiatives. This includes a video marketing campaign, which featured a short film by Hollywood director Paul Haggis. The video attracted about 1.5 million views on YouTube alone.

But, the company says that when factoring in the campaign’s website, paid placement, and Facebook promotions, the video was viewed more than 30 million times and increased web search traffic for Canada Goose by 500%. View it below.

Flightpath to the Future

“Going retail” for Canada Goose doesn’t mean that it is completely changing its business model. Rather, the new stores are just part of a growing marketing initiative as the company seeks to reach new customers and expand to a global market.

In the end, Canada Goose has realised that it’s not just wholesale, not just digital, and not just retail that marks out a flightpath to the future, but a fusion of all three. The last word goes to Reiss.

“There’s a lot of talk about e-commerce and ‘omni-channel’ [sales] and people are starting to recognize that bricks-and-mortar stores are the foundation of that. The future is not just online or just bricks and mortar. It’s a combination.”

Make sure to also  download the eTail Canada agenda  to check out all of the great activities, speakers, & sessions planned for this year.

About John Waldron: John Waldron is a technology and business writer for markITwrite digital content agency, based in Cornwall, UK. He writes regularly across all aspects of marketing and tech, including SEO, social media, FinTech, IoT, apps and software development.

Asking the better questions that unlock new answers to the working world's most complex issues.

Trending topics

AI insights

EY podcasts

EY webcasts

Operations leaders

Technology leaders

Marketing and growth leaders

Cybersecurity and privacy leaders

Risk leaders

EY Center for Board Matters

EY helps clients create long-term value for all stakeholders. Enabled by data and technology, our services and solutions provide trust through assurance and help clients transform, grow and operate.

Artificial Intelligence (AI)

Strategy, transaction and transformation consulting

Technology transformation

Tax function operations

Climate change and sustainability services

EY Ecosystems

Supply chain and operations

EY Partner Ecosystem

Explore Services

We bring together extraordinary people, like you, to build a better working world.

Experienced professionals

MBA and advanced-degree students

Student and entry level programs

Contract workers

EY-Parthenon careers

Discover how EY insights and services are helping to reframe the future of your industry.

Case studies

Energy and resources

How data analytics can strengthen supply chain performance

13 Jul 2023 Ben Williams

How Takeda harnessed the power of the metaverse for positive human impact

26 Jun 2023 Edwina Fitzmaurice

Banking and Capital Markets

How cutting back infused higher quality in transaction monitoring

11 Jul 2023 Ron V. Giammarco

At EY, our purpose is building a better working world. The insights and services we provide help to create long-term value for clients, people and society, and to build trust in the capital markets.

EY Announces Winners for the Entrepreneur Of The Year® 2024 Heartland Award

21 Jun 2024 Victoria Kasper

EY Announces Winners for the Entrepreneur Of The Year® 2024 Mid-Atlantic Award

EY Announces Winners for the Entrepreneur Of The Year® 2024 Southeast Award

No results have been found

Recent Searches

CIO Survey: will you set the GenAI agenda or follow the leaders?

Get insights on how CIOs will address the challenges and capture the full benefits of GenAI in the 2024 EY CIO Sentiment Survey.

How a flexible supply chain raised the bar for the beverage industry

The client’s goal: better accommodate future growth, predict customer demands, and add agility to inventory and production lines. Learn how we did it.

How can your business go from competitive to cutting edge?

Learn how the EY-Microsoft Alliance delivers AI driven strategies and smart business solutions using cloud technology.

Select your location

Leadership in Action: Being a purpose-driven brand

Leadership in Action  > Being a purpose-driven brand

How Canada Goose CEO Dani Reiss made purpose and authenticity the cornerstone of his business’ digital success and global expansion.

T oday, societies demand greater responsibility from the organizations they work for, buy from and invest in—and that’s driving a lasting shift in what defines long-term value. They want businesses to express their brand purpose at every level, from the business strategy and workplace culture to the consumer experience and community investment.

“This year’s  EY Future Consumer Index  found the pandemic caused consumers to double down on the importance of long-term value and ESG,” says Jad Shimaly, chairman and CEO of EY Canada. Commitment to a strong environmental, social and governance (ESG) platform is essential to success.

Consider Canada Goose. The fashion brand offers a prime example of navigating this increasingly digital, increasingly human era. Since CEO Dani Reiss took the helm two decades ago, the company has grown from a local apparel startup in Canada to a globally recognized, direct-to-consumer brand. And its stock has nearly tripled since its 2017 initial public offering.

Reiss made ESG a core element of his strategy, and has applied it not only to the outerwear manufacturer’s brand, but also to its digital transformation, direct-to-consumer pivot and expansion into global markets. Under Reiss’s leadership, the company committed to manufacturing exclusively in Canada, and has sourced materials in more sustainable ways, partnering with environmental groups such as Polar Bears International. The platform is a perfect fit for Canada Goose—a Canadian company producing cold-weather clothing and dedicated to protecting the frozen North from the threat of climate change. The company also initiated Project Atigi, an entrepreneurial partnership with Inuit designers that celebrates their expertise and craftsmanship in a unique parka collection, with proceeds from sales going to Inuit communities.

Canada Goose has really embraced its purpose: to keep the planet cold and people warm

Jad Shimaly

Chairman and CEO, EY Canada

How EY can help

Strategy consulting

EY-Parthenon professionals recognize that CEOs and business leaders are tasked with achieving maximum value for their organizations’ stakeholders in this transformative age. We challenge assumptions to design and deliver strategies that help improve profitability and long-term value.

“We know the apparel industry is one of the most polluting industries on the planet,” Reiss says. “We want to help change that. I think companies that don’t have that same mentality aren’t going to survive the next few decades. Consumers these days want to buy products from companies that are good for the planet. It’s fundamental.”

“Canada Goose has really embraced its purpose: to keep the planet cold and people warm,” Shimaly says. “Their commitment to the environment is deeply rooted in who they are, the products they develop, and how they operate in the communities they work in.”

The company embraced its purpose at the outset of the pandemic and stepped up to address gaps and new market challenges by converting Canada Goose’s manufacturing facilities to prepare personal protective equipment for Canadian front-line workers.

Reiss brought the company’s purpose to the forefront and put the right systems in place to make positive contributions to society, while also building their brand awareness and helping them achieve trust as an industry leader.

Digital transformation has had a further benefit in enabling the company to deepen an authentic expression of purpose, Shimaly says. “It increases the level of engagement companies have with all their stakeholders, including employees, consumers and suppliers.”

Digitalization and direct-to-consumer sales are revolutionizing business around the globe, forcing firms to reimagine their organizational structure, workforce and relationship with consumers. Amid those changes, it may be easy to lose sight of the human element. “Yes, this is the digital era,” says Kim Billeter, People Advisory Services leader for EY Americas. “But the human is still at the core.”

“Now is the time to take that ESG-focused approach,” Billeter says. “The key is consistency and authenticity around your message. That’s how you get what you want out of your transformation.”

This is part of  Leadership in Action  — a master class series featuring prominent CEOs highlighting the decisive moment where bold decision-making has made a material impact on their company and career.

Consumer products and retail

EY teams help CPR companies explore, identify and implement the right balance of bold strategic choices that will sustain their business today and transform it for relevance tomorrow.

Ask us how we can help with your corporate, transaction or turnaround strategy needs.

• Connect with us
• Our locations
• Do Not Sell or Share My Personal Information
• Legal and privacy
• Accessibility
• Open Facebook profile
• Open X profile
• Open LinkedIn profile
• Open Youtube profile

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here . By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service .

New to Zacks? Get started here.

Member Sign In

Don't Know Your Password?

• Zacks #1 Rank
• Zacks Industry Rank
• Zacks Sector Rank
• Equity Research
• Mutual Funds
• Mutual Fund Screener
• ETF Screener
• Earnings Calendar
• Earnings Releases
• Earnings ESP
• Earnings ESP Filter
• Stock Screener
• Premium Screens
• Basic Screens
• Thematic Screens
• Research Wizard
• Personal Finance
• Money Management
• Retirement Planning
• Tax Information
• My Portfolio
• Create Portfolio
• Style Scores
• Testimonials
• Zacks.com Tutorial

Services Overview

• Zacks Ultimate
• Zacks Investor Collection
• Zacks Premium

Investor Services

• ETF Investor
• Home Run Investor
• Income Investor
• Stocks Under $10
• Value Investor
• Top 10 Stocks

Other Services

• Method for Trading
• Zacks Confidential

Trading Services

• Black Box Trader
• Counterstrike
• Headline Trader
• Insider Trader
• Large-Cap Trader
• Options Trader
• Short Sell List
• Surprise Trader
• Alternative Energy

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.

If you wish to go to ZacksTrade, click OK . If you do not, click Cancel.

Image: Bigstock

Here is What to Know Beyond Why Canada Goose Holdings Inc. (GOOS) is a Trending Stock

Canada Goose ( GOOS Quick Quote GOOS - Free Report ) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this high-end coat maker have returned -1.6% over the past month versus the Zacks S&P 500 composite's +3.6% change. The Zacks Retail - Apparel and Shoes industry, to which Canada Goose belongs, has gained 5.5% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate Revisions

Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Canada Goose is expected to post a loss of $0.55 per share for the current quarter, representing a year-over-year change of -5.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $0.83 points to a change of +13.7% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $1 indicates a change of +20.5% from what Canada Goose is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record , our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates , Canada Goose is rated Zacks Rank #1 (Strong Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Due to inactivity, you will be signed out in approximately:

• Today's news
• Reviews and deals
• Climate change
• 2024 election
• Fall allergies
• Health news
• Mental health
• Sexual health
• Family health
• So mini ways
• Unapologetically
• Buying guides

Entertainment

• How to Watch
• My Portfolio
• Latest News
• Stock Market
• Biden Economy
• Stocks: Most Actives
• Stocks: Gainers
• Stocks: Losers
• Trending Tickers
• World Indices
• US Treasury Bonds
• Top Mutual Funds
• Highest Open Interest
• Highest Implied Volatility
• Stock Comparison
• Advanced Charts
• Currency Converter
• Basic Materials
• Communication Services
• Consumer Cyclical
• Consumer Defensive
• Financial Services
• Industrials
• Real Estate
• Mutual Funds
• Credit Cards
• Balance Transfer Cards
• Cash-back Cards
• Rewards Cards
• Travel Cards
• Credit Card Offers
• Best Free Checking
• Student Loans
• Personal Loans
• Car Insurance
• Mortgage Refinancing
• Mortgage Calculator
• Morning Brief
• Market Domination
• Market Domination Overtime
• Asking for a Trend
• Opening Bid
• Stocks in Translation
• Lead This Way
• Good Buy or Goodbye?
• Fantasy football
• Pro Pick 'Em
• College Pick 'Em
• Fantasy baseball
• Fantasy hockey
• Fantasy basketball
• Download the app
• Daily fantasy
• Scores and schedules
• GameChannel
• World Baseball Classic
• Premier League
• CONCACAF League
• Champions League
• Motorsports
• Horse racing
• Newsletters

New on Yahoo

• Privacy Dashboard

Yahoo Finance

Canada goose (goos) suffers a larger drop than the general market: key insights.

The latest trading session saw Canada Goose (GOOS) ending at $13.12, denoting a -0.91% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.18%.

Heading into today, shares of the high-end coat maker had lost 5.43% over the past month, lagging the Retail-Wholesale sector's gain of 1% and the S&P 500's gain of 3.15% in that time.

Market participants will be closely following the financial results of Canada Goose in its upcoming release. The company's upcoming EPS is projected at -$0.55, signifying a 5.77% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $64.24 million, indicating a 1.74% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.83 per share and a revenue of $986.24 million, signifying shifts of +13.7% and 0%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Canada Goose. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Canada Goose is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Canada Goose is currently trading at a Forward P/E ratio of 15.95. This signifies a discount in comparison to the average Forward P/E of 16.35 for its industry.

It is also worth noting that GOOS currently has a PEG ratio of 2.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Apparel and Shoes industry had an average PEG ratio of 2.23 as trading concluded yesterday.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 84, this industry ranks in the top 34% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research