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Canada Goose (clothing)

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Canada Goose Inc.
Company typePublic
TSX: GOOS
NYSE: GOOS
IndustryRetail
Founded1957
FounderSam Tick
Headquarters
Toronto, Ontario
,
Canada
Key people
Dani Reiss, President & CEO
ProductsOuterwear
Production output
Toronto, Ontario, Canada
Winnipeg, Manitoba, Canada
RevenueIncreaseC$<300 million (2015)
OwnerBain Capital and others
Number of employees
1,000
Websitehttp://www.canada-goose.com

Canada Goose Inc. is a Canadian manufacturer of winter clothing. The company was founded in 1957 by Sam Tick, under the name Metro Sportswear Ltd.[1] Canada Goose manufactures a wide range of jackets, parkas, vests, hats, gloves, shells and other apparel. Some Canada Goose jackets use coyote fur on the hoods[2] and are often filled with down which is purchased from Hutterite farmers in rural Canada".[3] Duck down is used for most models. The jackets retail between $600 and $1,275; the "Kensington", its best-selling women's coat, retails for approximately $745.[4]

History

Early years (1957–1980)

In 1957, Polish immigrant Sam Tick founded Metro Sportswear Ltd. in a small warehouse[5] after spending years working as a cutter in other factories.[6] Metro made woolen vests, raincoats, snowmobile suits, and other functional outerwear before creating down-filled jackets in the early 1970s.[2] In 1972, Tick's son-in-law, David Reiss, joined the company and eventually became CEO. Metro mainly focused on manufacturing custom down-filled coats and heavy-duty parkas for the Canadian Rangers, city police departments, the Ontario Provincial Police, municipal workers, the Ministry of Environment, and the Ministry of Correctional Services.[1]

Developing years (1980–1997)

In the early 1980s, Metro Sportswear expanded to 50 employees. In 1985, David Reiss, Sam Tick's son-in-law, acquired a majority equity stake in the company.[7] In 1985, the company began to produce apparel under its own "Snow Goose" brand.[7] In the early 1990s, Metro began selling its products in Europe, where the Snow Goose name was already in use, so Metro sold its European products under the name Canada Goose.[1]

Expansion and growth (1997–present)

David Reiss' son, Dani Reiss, joined the company in 1997. In 2001, when Dani Reiss succeeded David Reiss as CEO, Canada Goose generated around $3 million in annual revenue, largely through licensing its designs to other companies in the industry.[7]

Under Dani Reiss' leadership, the company discontinued its private label operations and continued to manufacture only in Canada rather than outsourcing to Asia, where labor costs were much lower.[1]

The business expanded in the mid-1990s, with sales and revenues increasing from roughly $3 million in 1991 to roughly $17.5 million in 2008,[8] reflecting increased sales of Canada Goose products in Scandinavia since 1998, and in Canada around 2008.[citation needed]

Canada Goose began to expand internationally, and in 2010, it opened an office in Stockholm, Sweden, for its European operations.[9] In 2011, Canada Goose acquired a new plant in Winnipeg, Manitoba, Canada.[10] As global growth continued, Canada Goose moved its Winnipeg operations into a larger facility in 2013.[11] The Canadian Marketing Association named Reiss as its marketer of the year in 2013.[3]

In December 2013, Boston-based private equity firm Bain Capital acquired a 70% equity stake in Canada Goose at a $250 million valuation.[12][13] The deal included a commitment to keep manufacturing in Canada.[3] Canada Goose also acquired a factory in the former city of York in Toronto formerly owned by Hilroy (stationery brand within the Mead division of ACCO Brands).

In December 2014, Canada Goose opened a showroom and an office in New York City.[4] In January 2015, Canada Goose acquired a second manufacturing facility in Scarborough from a contractor.[14] In November 2015, Canada Goose opened a second factory in Winnipeg significantly increasing its manufacturing capacity.[15] That year the company revenue was reported to be about $200 million,[16] including warm-weather countries such as India and the Middle East.[3]

In late 2016, Canada Goose opened a store in Toronto's Yorkdale Shopping Centre.

The company announced preparations in November 2016 for an initial public offering,[17] reporting that it generated $291 million in revenue and $27 million in profit in 2016; and it had $278 million of debt.[18] On March 16, 2017, shares of the company began trading on the Toronto Stock Exchange and New York Stock Exchange.[19]

A number of USAP Canada Goose parkas worn at Observation Hill, Antarctica.

In popular culture

The jackets have been worn in several films, including by Tatiana Maslany (in Orphan Black) , Nicolas Cage (in National Treasure), Jessica Alba (in Good Luck Chuck) and Kate Beckinsale (in Whiteout).[20] [failed verification] American model Kate Upton appeared on the cover of the 2013 Sports Illustrated Swimsuit edition in a bikini bottom and a Canada Goose parka.[21] Product placement with celebrities was part of the marketing strategy when it went international in 2010.[22]

In 2016, rapper Lil Uzi Vert released a mixtape featuring a song titled "Canadian Goose".

Canada Goose even uses professional athletes to promote its products. During Boston Red Sox designated hitter David Ortiz's final trip to Toronto during the 2016 Major League Baseball season, Toronto Blue Jays players José Bautista and Edwin Encarnación each gave Ortiz a custom-made Canada Goose jacket, valued at US$1000. All three players are from the Dominican Republic.[23][24]

Sponsorships and corporate responsibility

The company sponsors several film festivals including the Berlin International Film Festival, Sundance Film Festival in Utah, and Toronto International Film Festival.

Canada Goose products are also worn by researchers and workers in remote, cold-weather regions. Canada Goose (and Carhartt) supply parkas for participants in the United States Antarctic Program (USAP).[20]

Canada Goose is involved in several environmental and social initiatives, including The Conservation Alliance[25] and Polar Bears International (PBI). As part of its support to PBI, Canada Goose created a custom line of PBI products, including an aviator hat, Expedition Parka and Chilliwack Bomber; $25 from all PBI sales are donated to the non-profit organization devoted to preserving the habitat of polar bears around the world through research and education.[26]

Canada Goose runs a Canada Goose Resource Centre program that offer fabric and materials to Northern Canadians free of charge: Pond Inlet, Iqaluit, Rankin Inlet, and Kuujjuaq. Established in partnership with the North West Company and First Air in 2009, the Canada Goose Resource Centres provide local sewers with free fabrics, buttons, zippers, and other supplies to support the traditional practice in Northern Canada of making jackets and clothing for members of the community.[27]

Competitors

Moose Knuckles, in addition to making similarly-priced down jackets competing with Canada Goose, is not an exclusive outerwear company as it has fashion-focused products as well. In contrast to Canada Goose's low key advertising, which relied heavily on social media, Moose Knuckles has run controversial ads including one mimicking Kate Upton's Sports Illustrated cover where she wore a white Canada Goose Parka.[28]

In January 2012, Canada Goose launched a lawsuit against International Clothiers in the Federal Court of Canada for trademark infringement. Canada Goose alleged International Clothiers of intentionally designing a logo and positioning it on jackets to mimic the Canada Goose Arctic Program trademark. The International Clothiers product lines in question were the foreign-manufactured Canada Weather Gear and Super Triple Goose.[29] Canada Goose claimed that unfair business practices were used including publishing print advertisements to promote the jackets as Canada Goose products.[30] A settlement was reached in November 2012.[31]

Counterfeiting

Fake Canada Goose jackets are often sold online through counterfeit websites. The counterfeit coats have used fur from dogs or cats rather than coyotes. Instead of duck down, counterfeits use an insulation called "feather mulch", which is a less effective insulator and can include bacteria and mildew. In addition, the counterfeit logo patch is often poorly sewn, in contrast to its genuine counterpart where the maple leaves are produced in fine detail.[32] To combat this issue, Canada Goose created a web page enlisting the public's help. In 2011, Canada Goose began sewing holograms into its jackets as proof of authenticity;[33] the hologram shows images which can be seen from various angles. In addition, Canada Goose reminds consumers that their offerings are only sold via authorized retailers.[34]

In October 2012, Canada Goose won a legal battle against counterfeiters in Sweden. The District Court of Stockholm, found five individuals jointly and severally guilty of felony fraud, trademark infringement, and customs offenses. The Court sentenced two of the defendants to serve time in prison and also awarded Canada Goose damages of 701,000 SEK (approximately CAD$105,000).[35][36]

Criticism

People for the Ethical Treatment of Animals (PETA), an American animal rights group, criticized Canadian Prime Minister Justin Trudeau and his family for wearing Canada Goose products in a family Christmas photo because of the company's use of fur.[37] Canada Goose responded that the fur is used for warmth, not decoration, and that many Canada Goose products do not include fur. Following the public trading of shares in Canada Goose on the New York Stock Exchange in March 2017, PETA purchased 230 shares in the company so it could propose a shareholder resolution at Canada Goose's next annual meeting to "ask them to abandon the cruel use of fur and feathers."[38]

Canada Goose CEO Dani Reiss was criticised in 2014 by blogger Shannon Kornelsen for repeatedly refusing to meet then-11-year-old Jasmine Polsinelli, an anti-fur activist who wanted Reiss to reconsider trapping coyotes for their fur.[39][40]

References

  1. ^ a b c d Lorinc, John (17 October 2012). "The Golden Goose". Profit Guide. Retrieved 19 November 2012.
  2. ^ a b LaRochelle, Jillian (7 November 2012). "When hell freezes over". MRketplace. Retrieved 19 November 2012.
  3. ^ a b c d Iain Marlow; Sean Silcoff; Susan Krashinsky (December 10, 2013). "Canada Goose sells a majority stake – with a made-in-Canada guarantee". The Globe and Mail.
  4. ^ a b Stock, Kyle (December 9, 2014). "How Wall Street Puffed Up Sales of $800 Down Parkas". Bloomberg Businessweek.
  5. ^ Healy, Beth. "With $900 parkas, Bain's Canada Goose goes public". Retrieved 27 May 2017.
  6. ^ Gajo, Patricia (Winter 2012). "Down to business". NUVO. Retrieved 20 November 2012.
  7. ^ a b c Syme, Rachel (2017-02-16). "The Rise of Canada Goose's Hollywood-Friendly Coats". The New Yorker. Retrieved 2017-02-18. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  8. ^ ESQwire.com
  9. ^ Shaw, Hollie (3 June 2010). "Canada Goose opens European headquarters in Sweden". Financial Post. Retrieved 19 November 2012.
  10. ^ Chippeway, Darrell (6 January 2011). "Canada Goose buys city firm". Winnipeg Free Press. Retrieved 19 November 2012.
  11. ^ Cash, Martin (10 April 2013). "Canada Goose moves into bigger plant in Winnipeg". Winnipeg Free Press. Retrieved 26 April 2013.
  12. ^ Gelles, David, "Canada Goose Sells Majority Stake to Bain Capital", The New York Times, December 10, 2013.
  13. ^ Deveau, Scott (2017-02-15). "Canada Goose Files for IPO in New York and Toronto". Bloomberg.com. Retrieved 2017-02-18. {{cite news}}: Cite has empty unknown parameter: |dead-url= (help)
  14. ^ "Canada Goose acquires 2nd manufacturing plant in Toronto". CBC News. January 13, 2015.
  15. ^ "Poised for expansion, Canada Goose opens 2nd Winnipeg factory". www.cbc.ca. Retrieved 2016-04-05.
  16. ^ Entis, Laura (December 29, 2014). "How Canada Goose Went From Small Outerwear Company to International Luxury Brand". Entrepreneur.
  17. ^ "Is Canada Goose ready to fly on the stock market?". Toronto Star, November 10, 2016, page B1.
  18. ^ Matthew Zeitlin, Here are 7 things we learned about Canada Goose from its IPO filing, CNBC, February 16, 2017
  19. ^ "Shares of coat maker Canada Goose take flight on stock markets". CBC News. The Canadian Press. March 16, 2017. Retrieved March 16, 2017.
  20. ^ a b Robertson, Grant (25 February 2010). "Year of the Goose". The Globe and Mail. Retrieved 23 July 2011.
  21. ^ "Kate Upton rocks Canada Goose for Sports Illustrated swimsuit edition". Canadian Business, Feb 14, 2013 Trevor Melanson
  22. ^ Syme, Rachel (16 February 2017). "The Rise of Canada Goose's Hollywood-Friendly Coats". The New Yorker. Retrieved 19 February 2017.
  23. ^ https://www.thestar.com/sports/bluejays/2016/09/09/blue-jays-honour-retiring-red-sox-slugger-david-ortiz.html
  24. ^ http://nesn.com/2016/09/blue-jays-present-david-ortiz-with-most-canadian-retirement-gift-ever/
  25. ^ "Member List". The Conservation Alliance. Retrieved 17 September 2011.
  26. ^ "Canada Goose Clothes Are Good For Chilly Days In Winter 2011". Pub Articles. Retrieved 23 July 2011.
  27. ^ "Canada Goose Announces New Resource Center". Inside Outdoor. 8 March 2010. Retrieved 17 September 2011.
  28. ^ [1]
  29. ^ "Canada Goose sues competitor over alleged replicas". CBC News. 22 February 2012. Retrieved 20 November 2012.
  30. ^ Henderson, Peter (23 February 2012). "Canada Goose sues rival International Clothiers over winter parka 'rip off'". National Post. Retrieved 20 November 2012.
  31. ^ "Canada Goose settles jacket patent suit with retailer". CBC News. 7 November 2012. Retrieved 20 November 2012.
  32. ^ "Canada Goose cries foul over fakes". CBC News. 17 December 2010. Retrieved 24 July 2011.
  33. ^ Allard, Jordan (9 August 2011). "Go for the real Goose, says store owner Herb Lash Sr". The Sault Star. Retrieved 20 November 2012.
  34. ^ [2]
  35. ^ "Canada Goose wins $105K in Swedish counterfeit case". CBC News. 23 October 2012. Retrieved 20 November 2012.
  36. ^ Marotte, Bertrand (23 October 2012). "Trendy jacket maker Canada Goose claims win in knockoff battle". The Globe and Mail. Retrieved 20 November 2012.
  37. ^ Pearce, Tralee (17 December 2010). "Justin Trudeau's Christmas card controversy". The Globe and Mail. Retrieved 20 November 2012.
  38. ^ Israel, Solomon (March 17, 2017). "Investing and protesting: Why PETA bought shares of Canada Goose". CBC News. Retrieved March 17, 2017.
  39. ^ Kornelsen, Shannon (31 March 2013). "Is Canada Goose Afraid of Facing an 11-Year-Old Girl?". Huffington Post Canada. Retrieved 7 January 2014.
  40. ^ O'Kane, Josh (April 11, 2013). "Canada Goose CEO's 'aha' moment: 'I realized the brand was real'". The Globe and Mail. Retrieved March 17, 2017. The company is not without detractors. The use of hood trim made from coyote fur has drawn numerous protests, including most recently from an 11-year-old girl who hoped to ask Mr. Reiss to offer an alternative material.

External links

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