Canada Goose Extends Manufacturing Footprint to Europe

Canada Goose now controls a clothing manufacturer on European soil.

The Toronto-based luxury parka purveyor has famously produced most of its wares close to home in Canada, where it runs seven production facilities north of the border. Now, the acquisition of Paola Confectii Manufacturing’s operating assets gives Canada Goose tighter control over its knitwear offerings, which the six-year-old Romanian supplier has helped produced for the Inuit champion since 2017.

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Though parkas propelled Canada Goose to celebrity acclaim, the brand is banking on a broader array of lifestyle offerings for growth. That’s why the company spent the past several years funneling resources into categories such as clothing beyond its famous cold-weather jackets, plus footwear to complete the look. In an era when many apparel companies are content to contract with their factories, Canada Goose has a proven track record of keeping suppliers close. That’s why it acquired Baffin, the Ontario shoe manufacturer, three years before unveiling its first foray into footwear back in 2021.

The deal for Paola Confectii is straight out of this playbook. Working with the producer for the past six years gave Canada Goose plenty of time to take a good look under the hood and gain the confidence to cement the relationship.

Canada Goose chairman and CEO Dani Reiss said as much in a statement on Tuesday.

“Our vertically integrated supply chain has always been one of our core competencies,” he said. “This strategic investment advances our renowned manufacturing infrastructure and validates the performance luxury brand we are today. It also demonstrates the confidence we have in our emerging categories and our plans to develop these categories into even more meaningful contributors to our business.”

The women's HyBridge Knit Jacket Contrast Trim retails for $750.
The women’s HyBridge Knit Jacket Contrast Trim retails for $750.

Paola Confectii is the manufacturing talent behind Canada Goose’s HyBridge Knit Jacket, the men’s and women’s merino wool bestseller that goes for a cool $750. Knitwear is key to the firm’s apparel business, which added more than $70 million in sales for the company’s fiscal 2023; the transaction suggests the category will produce even bigger numbers in the near future. Canada Goose believes the “closer partnership” with the European maker will “enhance product margins and supply control while deepening in-house product expertise.”

Canada Goose didn’t disclose the deal’s financial terms. General manager Giannino Lessi and technical director Paola Zaffalon will remain in charge of Paola Confectii, which will continue operating as usual. Open Supply Hub data suggests that the manufacturer has previously supplied brands including Benetton and Another Tomorrow.

In February, Canada Goose outlined the three pillars propping up its five-year growth strategy. It aims to attract more women and Gen Z consumers, more than double its retail footprint while enhancing digital, and execute in areas of opportunity, including rainwear, apparel, footwear, eyewear, luggage and home.

“As we grow, we will expand our categories, geographies and capabilities with a keen eye toward investing where we see a high return, protecting our brand and delivering high quality, profitable growth,” Reiss said at the time. “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 percent through the execution of our three strategic growth pillars.”