Canada Goose plans to double retail footprint and enter new product categories
Luxury outerwear brand Canada Goose has provided a series of financial targets for the next five years and an update on its strategic business priorities, which includes entering new markets and categories.
As part of its strategic plan, the company intends to execute on the following three strategic growth pillars:
- Accelerate Consumer Focused Growth
- Build DTC Network
- Create New and Expand Existing Categories, rapidly
Canada Goose intends to grow the lifetime value of its longstanding and new customers with a focus on women and Gen Z, more than double its retail footprint from the 51 permanent stores it currently has, and enter into new markets around the world.
The company also intends accelerate growth in all categories including in heavyweight and lightweight down, as well as newer categories such as rainwear, apparel and footwear. It also intends to enter additional categories including eyewear, luggage and homeware.
Dani Reiss, Chairman and CEO at Canada Goose, said: “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 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.
“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% through the execution of our three strategic growth pillars.”
By fiscal 2028, the company expects to achieve revenues of $3 billion, in line with the historical performance for revenue from fiscal 2017, during which the company completed its IPO, to 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 its 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 and Asia-Pacific.
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.
Announced yesterday, Canada Goose has teamed up with Union LA store owner and streetwear designer, Chris Gibbs, on a capsule collection in celebration of the National Basketball Association (NBA) All-Star 2023.