Canada Goose Holdings on Tuesday offered a five-year growth plan it thinks can take the luxury brand to C$3 billion ($2.2 billion) in revenue.
“Looking ahead, we see incredible opportunity to continue the revenue growth trajectory we have experienced since the time of our IPO and deliver increasing rates of profitability,” Chair and CEO Dani Reiss said in a statement Tuesday.
Canada Goose, which went public in 2017, said it will focus on three areas of growth to help reach the five-year target.
The three growth initiatives include a more targeted approach to women and Gen Z consumers, in addition to finding growth from the existing consumer base. Canada Goose will also boost its direct-to-consumer efforts with the doubling of its physical store count, which is currently at 51 doors, along with e-commerce. The company pointed to the potential in both new international and existing markets.
The third initiative in the company’s three-prong plan is category expansion that creates “year-round relevance” for the brand, Canada Goose said. The company said it expects to ramp growth in rainwear, apparel, and footwear, while also adding eyewear, luggage, and home. Meanwhile, it said it expects its existing heavyweight and lightweight down products to also notch gains.
“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 said. “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.”
The North America, EMEA (Europe, Middle East, Africa, and Latin America), and Asia-Pacific markets are expected to eventually be of equal size in terms of sales.
The five-year update comes after Canada Goose last week lowered its full-year revenue guidance for the current fiscal year. The company now expects revenue of C$1.175 billion to C$1.195 billion ($873.7 million to $888.6 million).
The company previously projected revenue of $1.2 billion to $1.3 billion ($892.3 million to $966.7 million), but cited the impact of Covid-19 restrictions in China late last year and the macroeconomic environment in North America for revising its estimates.
Shares of the company, which had a recent market cap of $2.2 billion, were trading down 1.2% to $20.74 in afternoon trading Tuesday.