From humble beginnings in 1957 supplying down-filled coats and heavy-duty parkas to the hale and hearty working-class folks of our neighbor to the north, Canada Goose has rapidly scaled the social heights to become the “It Jacket” for Hollywood celebrities and super models at Sundance Film Festival and anywhere else the glitterati need to stay warm.
The brand is hot not because of the celebrities that wear it, but the fact that it does its job really well – that is keeping people warm when it gets extraordinarily cold. In doing so, the Canada Goose brand has become the proverbial goose that lays golden eggs.
Canada Goose is on a tear
Since 2015, the company’s revenues have grown 77%, from C$291 million to C$591 million in fiscal 2018. In the past year alone, it boasts 46.4% revenue growth, with direct-to-consumer sales more than doubling year-over-year (121.3%).
DTC now accounts for over 40% of total sales generated from stores located in premier shopping destinations in seven cities (London, Toronto, New York, Boston, Calgary, Chicago and Tokyo) and its website now serves 12 countries. It further distributes products wholesale in 2,200 points of distribution across 38 countries.
In reporting the company’s banner year on June 15, 2018, it also announced plans to open three new stores in North America ahead of the 2018 holiday shopping season, in Short Hills NJ; Montreal, Quebec; and Vancouver, British Columbia. This follows news in May that the company will open flagship stores in Beijing and Hong Kong and will expand e-commerce in China through a partnership with Alibaba Group.
Commenting on the company’s stellar performance, Dani Reiss, president and ceo, said, “These results reinforce my belief that we are still just scratching the surface of our global potential. As we continue to bring more Canada Goose to more of the world, we are resolutely focused on the long term and what we need to get there.”
Credit Suisse agrees that Canada Goose is just beginning, in a research note published in March 2018. It reported Canada Goose holds approximately a 6% share of the $11 billion premium outerwear market and is rapidly gaining on Moncler, its primary competitor with 16% share. “GOOS has substantial untapped global opportunity,” the report stated. “We forecast a +23% revenue CAGR in ’18-’20 – an incredibly scarce growth algorithm vs. global apparel peers.” By 2020 the company plans to operate 20 stores globally.
Global expansion is a priority for Canada Goose, which describes itself as a “three-season lifestyle brand.” In so doing, it has expanded its product offerings from extreme winter clothing to lighter weight choices for spring and fall. With this broader product range, its jackets are suited to consumers in places where their winter may be more like a Canadian spring or fall. It also is extending into knitwear and accessories so that Canada Goose brand can be a choice to wear under those parkas too.
Canada Goose’s time is now because it hasn’t abandoned its working-class roots in search of the allure of the luxury market. Rather it is translating its rock-solid form and function for a new class of consumers who need it, want it and will pay for it, without the extravagant excesses that traditional luxury brands charge its customers.
Canada Goose delivers superb value in new luxury style for today’s conscientious, social justice, values-focused next-generation consumers.
In with “New Luxury,” out with the old
Canada Goose has accomplished so much in such a short time and is poised to continue to attract more “Goose People” – what it calls its customers – because it captivates today’s affluent consumers who crave luxury in a brand new style.