Canada Goose Plans Expanded Footwear Offering & More Stores as It Aims for $3B in Revenue
Just days after the company released its third-quarter earnings, Canada Goose announced new five-year financial targets and provided an update on its strategic priorities at an investor day event held inside its Toronto headquarters on Tuesday.
As a part of its plan, Canada Goose now expects to achieve $3 billion in revenue by fiscal 2028. The company said that this goal is expected to be driven by three “strategic growth pillars.” One of these pillars includes accelerating growth in newer categories for the brand such as rainwear, apparel and footwear, as well as the addition of further categories including eyewear, luggage and home.
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First launched in 2021, the company’s footwear category was years in the making, beginning with its acquisition of Baffin in 2018, which allowed the company to gain expertise in the category. This led to Canada Goose’s first two styles, the Snow Mantra Boot and the Journey Boot, which officially hit the market in November 2021.
Fast forward to today, the category has grown almost 175% overall, Dani Reiss, chairman and CEO of Canada Goose, said to analysts last week during the company’s Q3 earnings call. “We have big plans for [footwear], and we’re very pleased with the way our consumers have taken to our new products,” Reiss added. “We continue to build momentum and strength behind the category and are super excited about the future.”
Another pillar in the brand’s plan is to build out its direct-to-consumer network. Canada Goose said it expects to more than double its retail footprint from the 51 permanent stores at the end of fiscal Q3 while continuing to grow its digital presence, both through omnichannel and online. “We see opportunity in new markets around the world and expect to increase our DTC penetration within existing markets and will evolve our distribution structure in others,” the company added in a press release.
Dave Benett/Getty Images for Can
And lastly, Canada Goose added that it is accelerating consumer-focused growth, especially with women and Gen Z clients as the company looks to “grow lifetime value.” This makes sense as brand president Carrie Baker called out the increase of female customers for its footwear category on last week’s earnings call.
“Women have [been buying our core footwear styles],” Baker said. “They’re very excited about this category and we’re selling out often and having to replenish quite quickly. So that’s great in terms of both category growth but also in terms of how we’re reaching women, which is obviously a key focus for us.”
Looking ahead, Reiss added in today’s announcement that he sees “incredible opportunity” to continue the revenue growth trajectory Canada Goose has experienced since the time of its IPO in 2017.
“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,” Reiss added. “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.”
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