Luxury outerwear brand Canada Goose has announced a strategic five-year growth plan to double its retail footprint, expand existing categories, and create new opportunities such as homeware, to reach 3 billion Canadian dollars in annual revenue by 2028.
In a statement, Canada Goose said that its five-year plan centres around three growth pillars. The first is to accelerate consumer-focused growth, by growing the “lifetime value” of the brand’s longstanding and new customers with a focus on women and Gen Z.
The next target area is to build its direct-to-consumer (DTC) network by more than doubling its store count from its current 51 permanent locations by the end of Q3 of fiscal year 2023. This growth in retail footprint will be alongside growing its digital presence, both through omnichannel and online. Canada Goose added that it sees opportunities in new markets around the world to increase its DTC, as well as existing markets.
The final focus will be “rapidly” creating new and expanding existing categories as it looks to deliver “year-round relevance” to position itself as a performance luxury lifestyle brand. Canada Goose adds that it is expecting continued growth in all categories including in heavyweight and lightweight down and accelerating growth in newer categories such as rainwear, apparel and footwear. The brand is also looking to add further categories such as eyewear, luggage and home.
Canada Goose targets 3 billion Canadian dollars in annual revenue by 2028
Dani Reiss, chairman and chief executive at Canada Goose, said in a statement: “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 an 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.”
These three growth pillars will assist the brand in achieving 3 billion Canadian dollars in annual revenue by 2028, adds the company, by growing at a compound annual growth rate of about 20 percent.
Canada Goose said that the strategy will also focus on continuing its luxury trajectory path globally towards an “equitable split” between North America, Europe, the Middle East and Africa, and the Asia Pacific regions.
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 Canadian dollars in revenue, and an adjusted EBIT margin of 30 percent through the execution of our three strategic growth pillars.”