Canada Goose: Poised For Double-Digit Growth And Trading Near Fair Value

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StockBros Research


  • Canada Goose is a globally recognized brand with strong margins.
  • Canada Goose has a long history and is led by the founder's grandson, who owns over 18% of the company.
  • We believe the company to be trading close to fair value.
  • Analysts expect double-digit revenue growth starting from fiscal year 2022.

The apparel industry is tough. There are no barriers to entry and tens of thousands of brands to choose from, ranging from dirt cheap, to expensively luxurious ones. Being able to convince customers to pay handsomely for products in such a competitive market says a lot about a brand. Such a company/brand has clearly mastered the art of marketing and is perceived as highly favorable by buyers.

Canada Goose Holdings (NYSE:GOOS) is this type of company. Arguably the most popular Canadian-based brand in the world, it has attained a loyal following which continues to grow. A big part of its popularity is that Canada Goose jackets are extremely warm, which is perfect for the harsh winters of Canada and other northern countries.

Canada Goose is well run with a long history meaning it is unlikely to be just a fad. However, the company is trading close to fair value leaving just a small margin of safety.

Growth Initiatives

Canada Goose has quickly been growing internationally. The company had strong results in Europe, particularly in the UK where digital business nearly doubled, according to CEO Dani Reiss in GOOS's most recent conference call.

Reiss went on to explain the company's growth priority. He said:

"Now to our next strategic priority, Mainland China. On our last earnings call, I spoke about the growth plans that we put in place for our business in the region. We have continued to execute on these plans. In the past year, we have more than doubled the number of stores that operate in the market. This quarter we saw that our investment has delivered strong results and our Mainland China DTC revenue has increased by 41.7%. We're still very early in our journey in Mainland China and we see significant opportunity to continue to grow our network in the region."

This article was written by

StockBros Research profile picture
Two bros that talk about stocks, mainly GARP (growth at a reasonable price) stocks, but we look for opportunities everywhere. We don't have a specified time horizon. We invest in a stock for as long as our thesis holds true, and get out when the facts change. In addition, we've developed market-beating algorithms with python that help us find attractive investment opportunities within our own portfolios.Website: www.stockbrosresearch.comTwitter: @StockBrosTrades

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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