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.
While Canada Goose investors are still smarting from last week’s disappointing third-quarter report — which told how macro pressures in the U.S. and COVID-19 restrictions in China led to top and bottom line declines — Reiss is doubling down on the true-to-brand approach that built his track record.
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Reiss first became CEO of the company in 2001, when the firm founded by his grandfather, Sam Tick, had just $2 million in sales. The next two decades saw the Canadian player transform into a powerhouse.
“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.
For their part, investors seem to be waiting to see how the plan plays out. Shares of Canada Goose closed up 1.6 percent to $21.33 on Tuesday after trending down earlier in the day.