Canada Goose applies for stock exchange listing in Toronto and New York
Canada Goose is well on its way to a double stock exchange listing. The Canadian premium parka and down jacket brand, in which Bain Capital has held a 70% stake since 2013, has in fact applied for a double listing on the Toronto and New York stock exchanges, under the ticker symbol GOOS.
Whereas analysts were expecting a funding round worth between $200 million and $300 million, the company mentioned "only" a figure of $100 million, though this is not a final objective.
However, the listing document, called Form F-1, gives a detailed insight of Canada Goose Holdings' financial data and of its strategy.
In Canada Goose's last whole fiscal year, closed at the end of March 2016, the USA have become the label's main market, growing by 75% over the previous year and reaching a revenue of CAD103.4 million. Sales in Canada grew by 15%, up to CAD95.2 million, while the rest of the world generated a revenue of CAD32.2 million (+42%). In the same period, online sales accounted for 11.4% of the total, via local sites in the USA, Canada, the UK and France.
According to the figures published in Form F-1, sales are on the up again in the current fiscal year: in the first nine months, ending on 31st December, they were worth nearly CAD353 million, compared to nearly CAD249 million in the same period a year earlier, while operating income grew from CAD44 million to over CAD60 million, and net income was CAD45 million, compared to less than CAD36 million a year earlier.
Strategically, Canada Goose has clearly set its sights on the US market, where its brand awareness is still weak (16% compared to 76% in Canada) and there is the opportunity to grow its market share significantly. The brand is well-established in the country's North-East, and is looking to attract multibrand retailers in the Mid-Atlantic, Midwest and Pacific Northwest areas.
Another growth driver will be direct sales to consumers. After opening its first stores in Toronto and New York, the company said it wants "to open other stores in major urban areas and in premium outdoor resorts, where we can establish a profitable presence."
In Europe, the brand is performing strongly in the UK and France. "We have expanded successfully thanks to our retail partners, but we still have to develop fully our multibrand presence, and we are only at the inception of our shop-in-shop strategy. We have also identified Germany, Italy and Scandinavia as markets with an interesting potential." Outside Europe, Canada Goose intends to grow in Japan and South Korea via new distributors.
Besides pushing for geographical expansion, the brand is keen to strengthen its presence on the market beyond the winter months, by turning into a credible player in the light down-jacket and rain-proof apparel segments. Other product areas with development potential are knitwear, fleeces, footwear and travel accessories.
It remains to be seen whether Canada Goose's ambitious plans will attract investors on the Toronto and New York stock exchanges.
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