A cold-weather clothing company founded more than half a century ago is beginning to make a global move.
While launched in the 1950s by Polish-Jewish immigrants to Canada, winter clothing company Canada Goose (GOOS) truly started exploding as a business in the mid-2000s. After taking over from his father-in-law in 2001 at 27 years old, current president and chief executive Dani Reiss started opening factories and sewing schools all over Canada and pitching the goose down winter coats workers produced to luxury boutiques in Europe.
The strategy of shifting the company's reputation away from being a provider of warm gear to Canadian rangers, mountain workers and other people facing extreme weather conditions toward luxury clearly worked. With many popular winter coats selling for upwards of $1,000, a Canada Goose coat soon became a status symbol both on college campuses and city streets.
Different estimates show that the company formerly going under names like Metro Sportswear and Snow Goose grew from being worth $3 million in 1991 to $17.5 million in 2008 to over $2 billion in 2023 -- it went public on the NYSE on March 16, 2017.
More Brick-And-Mortar, Says Canada Goose
The Toronto-based clothing company has also faced several scandals over the years -- the most high-profile one has been the growing outrage over its use of fur and goose down. In 2020, Canada Goose committed to only using reused rather than new fur for its signature trims.
As with all things fashion, the popularity of Canada Goose shares has also seen ebbs and flows over the years. At $19.35, shares of the company are currently down nearly 33% from a year ago.
But the company is still in serious expansion mode, Reiss said during the company's investor day earlier this week. This week, it articulated its commitment to double its physical store footprint from 51 to more than 100 by the end of 2023. By 2028, the company also hopes to reach revenue of $3 billion Canadian dollars ($2.25 billion USD) -- a CAGR growth rate of 20% given that it currently expects 2023 revenue to fall between $1.175 billion and $1.195 billion Canadian dollars.
"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," Reiss told investors on Feb. 7.
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Luggage, Eyewear And Home Decor Are on Canada Goose's Mind
The categories into which Canada Goose plans to expand include luggage, eyewear and home décor. Along with its signature coats and parkas, Canada Goose currently sells clothing like sweaters, fleeces and lounge pants, accessories like hats and mittens and footwear such as winter boots and slippers.
The site also features a very limited selection of lifestyle products like blankets, candles and a waist pack. Reiss told investors that they would see which of the new categories sell best and continue "investing where [they] see high return."
Other priorities also include increasing its percentage of female and Generation Z customers. While women already make up more than 48% of its customer base, that number is lower than the 60% that is typical for a brand positioning itself as luxury.
"Our products are iconic, our style is enduring and our brand has never been stronger," Reiss said. "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."
