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Canada Goose (NYSE: GOOS) | Company Profile, History, Competitors

 

Canada Goose (NYSE: GOOS) develops and manufactures luxury outdoor lifestyle products. Canada Goose was founded in 1957 by the grandfather of current CEO, Dani Reiss. It has transformed from a Canadian utilitarian parka company into a global lifestyle brand. As of 2017, it has 6 retail stores and e-commerce operations in 12 countries.

Business Segments

Canada Goose serves customers through two main segments:
  • Wholesale (60% of 2017 Revenues): Canada Goose partners with 2,500 retail points of distribution across 36 countries. 
  • Direct-to-Consumer (40% of 2017 Revenues): Canada Goose has an e-Commerce website and complemented by company operated locations.

Market Strategy

Canada Goose has a strong growth strategy highlight by several key initiatives:
  • Wholesale Development: In new markets, Canada Goose typically leads its market development strategy through establishing brand awareness by its Wholesale channels. Canada Goose plans to leverage its Wholesale network by adding additional retail doors and increasing volume with existing retail partners. 
  • International Expansion: Canada Goose plans to increase penetration in the US, Western Europe and Asia. Canada is their most mature market today with a penetration rate three times higher than its next largest market (US).
  • Product Expansion: Canada Goose plans to expand its product line into Spring/Fall items. Canada Goose will focus on enhancing its products into new areas like knitwear, fleece, footwear, travel gear and bedding.
  • Business Model: Canada Goose also plans to expand its Direct-to-Consumer business. This should result in gross margin expansion. Canada Goose plans to open new websites in its expansion markets.

Manufacturing Facilities

Canada Goose owns five manufacturing plants in Toronto. Canada Goose plans to add one factory per year. They plan to shift to more in-house manufacturing over time, which has higher margins. In terms of input costs, it is roughly evenly split between raw materials and labor. The key raw materials are coyote fur and goose down.

Competition

Canada Goose competes in a competitive fashion category. Their main competitors are The North Face, Patagonia, Arc'Teryx, Marmot. Its higher end competition is Moncler, Barbour and Burberry.

Seasonality

Canada Goose is a highly seasonal business and outerwear demand is tied to winter weather trends. Roughly, 80% of sales is down parkas. 

Management

Dani Reiss (CEO): Dani Reiss serves as CEO since 2001. He is the grandson of the founder and joined the company in 1997.

Jonathan Sinclair (CFO): Jonathan Sinclair served as CFO since 2018. He had served as CFO and VP of Business Operations of Jimmy Choo.

Penny Brook (CMO): Penny Brook serves as Chief Marketing Officer since 2014. Prior to that, she served in marketing roles at Mulberry, Clarks and Philips Electronics.

Lee Turlington (CPO): Lee Turlington serves as Chief Product Officer since 2015. Prior, he was VP of Global Product at Patagonia. He also worked at Nike, Fila Sports, and The North Face.

Financials

 $ USD in millions     2014  2015  2016  2017
 Revenues $192  $222  $308  $461 
 Gross Profit $78   $111   $161   $271 
 Operating Profit  $24   $31   $31   $107 
 Net Income $13  $22   $17   $75 
 EPS  $0.12   $0.20   $0.17   $0.70 
Canada Goose, Inc.
 
  Ticker     NYSE: GOOS
  Industry Retail
  Founded 1957
  Headquarters Toronto, Canada
  Stores 6 (2017)
  Revenues
$591mm (2017)
  Employees 2,636 (2017)
  Website canadagoose.com