Canada Goose plans to open three more stores in North America — one in the U.S. and two in Canada — in time for the holidays this year, the company said Friday.
The upscale outdoor apparel brand's fourth U.S. store will open at The Mall at Short Hills in New Jersey to serve the suburban metropolitan New York area, according to a company press release. A Montréal store is planned for Ste-Catherine Street in the heart of the shopping and entertainment district, and a Vancouver store is set to go in the CF Pacific Centre.
Also on Friday, the retailer, whose parkas can cost north of $1,000 each, announced fourth quarter results that flew by analyst estimates. Total revenue rose 46.4% to $591.2 million (47.7% in constant currency), wholesale revenue rose 16.5% to $336.2 million and direct-to-consumer revenue rose 121.3% to $255 million. The company said it expects annual revenue growth of at least 20% next year.
Canada Goose is making good on the strategy unveiled last year to grow the brand's global footprint both on and offline. "In the past two years, we have seen an amazing impact our retail stores have on local market activation," CEO Dani Reiss told analysts Friday, according to a transcript from Seeking Alpha.
The brand, which began as a wholesaler, now operates retail stores in seven cities. Its e-commerce business has also expanded to 12 countries since 2014. In May, Canada Goose announced a growth strategy for Greater China, including opening stores in Beijing and Hong Kong, launching e-commerce via Alibaba Group's Tmall platform and establishing a regional head office in Shanghai. Alibaba founder Jack Ma early this year wore on of its parkas at the 2018 World Economic Forum in Davos, Switzerland, according to USA Today.
The company last week said that its three new stores will each feature local elements, but also have some things in common, including marble polar bear sculptures from Canadian Indigenous artist Jason Carter — a nod to the company's 10-year relationship with Polar Bears International.
The brand was founded decades ago in a small warehouse in Toronto, and has said it is committed to "Made in Canada" apparel, innovation in cold-weather apparel and designs that appeal to shoppers looking for styles appropriate for an Arctic environment as well as for urban living. So far, the brand is resonating among luxury customers worldwide, and new store locations are situated in shopping centers catering to wealthier shoppers.
Along with similarly positioned Italian outdoor brand Moncler, Canada Goose has taken market share from VF Corp.'s The North Face, according to a note last year from retail analysts at Jane Hali & Associates, which also noted that "[t]hese brands are trend-led and geared more for the female customer."
In a scheme that could help spur off-season sales, the New Jersey and Montréal stores will be the first of its locations in North America to offer a 'cold room' – an immersive experience where customers can test parkas in temperatures as low as -13 Fahrenheit.