Canada Goose expands online and off In a challenge to The North Face
Canada Goose on Thursday announced it will open five retail stores in the 2018 fiscal year, including three just announced for fall in Boston, Calgary, Canada, and Tokyo, Japan in addition to two previously announced fall openings in London and Chicago. The 60-year-old upscale Canadian outdoor apparel retailer also said it has launched four of seven planned e-commerce markets this year, according to a company press release. Its first two flagship stores bowed in Toronto and New York last fall.
Q1 total revenue rose by $12.5 million (Canadian dollars) to $28.2 million from $15.7 million in the year-ago period, the company said in separate statement. Wholesale revenue rose to $19.9 million in the quarter from $14.4 million in the year-ago period, driven by earlier timing of $5.1 million in shipments that arrived early, and direct-to-consumer revenue rose to $8.3 million from $1.3 million in the quarter last year, driven by strong growth in its North American e-commerce sites, incremental revenue from new retail stores in Toronto and New York City, and new e-commerce sites in France and the U.K., the company said.
The investments are taking their toll, though: Net loss for the quarter was $12.1 million Canadian, or 11 cents per share, compared to a net loss of $14.0 million, or 14 cents per share, in the first quarter of 2017, the company said.
Canada Goose is in migration, opening stores and e-commerce sites globally and plucking sales from competitors. The retailer, along with similarly positioned Italian outdoor brand Moncler, has taken market share from VF Corp.’s The North Face, according to a note emailed to Retail Dive from retail analysts at Jane Hali & Associates: "These brands are trend led and geared more for the female customer."
Operated by Canada Goose’s distribution partner in Japan, the new 3,100-square-foot flagship store in Tokyo will be located in the Sendagaya fashion district. The Boston store will be in the upscale Prudential Center and the Calgary location will be the brand’s second in Canada, located in the tony Cadillac Fairview Chinook Centre, the company said.
"Opening these new stores is another key part of this new chapter in our 60 year history. Having a flagship store in Tokyo is particularly exciting as Japan continues to be one of our strongest growing markets and we can now better answer the call of our Asian customers by giving them an opportunity to engage with our brand, unfiltered," Canada Goose President and CEO Dani Reiss said in a statment. "We are equally excited to extend our footprint in North America, where we know our brand’s proud Canadian heritage and unparalleled product innovation and design resonates with locals and tourists alike."
The brand was founded decades ago in a small warehouse in Toronto, and maintains a steadfast commitment to "Made in Canada" apparel, innovation in cold-weather comfort, and craftsmanship and design that appeals to shoppers looking for styles appropriate for an Arctic environment as well as for urban living.
"We … continue to see strong consumer demand for our new lighter weight products designed for warmer climates and seasons," Reiss said in a statement. "Financially, our first quarter is a seasonally small quarter and this year we experienced favorable timing on wholesale revenue that drove particularly strong results. Overall, we believe we are well positioned for our upcoming peak selling season and beyond. Our team continues to execute our growth strategies in both wholesale and direct-to-consumer channels and we remain confident in our ability to deliver this year."
- press release via BusinessWire Canada Goose Expands Global Retail Footprint with Three New Stores
- press release via BusinessWire Canada Goose Reports Results for First Quarter Fiscal Year 2018
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