The latest performance of high-end functional clothing brand Canada Goose has withstood the "cold wind" of early winter. On November 8th, a reporter from Beike Finance of the New Beijing News learned that Canada Goose has released its financial report for the second quarter of the 2025 fiscal year, ending on September 29, 2024.
During the reporting period, Canada Goose achieved a total revenue of CAD 267.8 million, exceeding expectations.
When evaluating financial data, Dani Reiss, Chairman and CEO of Canada Goose, stated, "Despite the increasingly severe macroeconomic environment we are facing and the impact on consumer sentiment, our second quarter performance reflects steady progress in various operational priorities." He also pointed out that Canada Goose remains focused on providing excellent customer experience in its direct sales (DTC) channel and enhancing the attractiveness of its diversified product line through targeted marketing and optimized distribution methods.
Maintaining resilience in the luxury goods' winter, global sales exceed market expectations
According to data, in 1957, Canada Goose was born in a small warehouse in Toronto. With its excellent functional positioning and a multi category product matrix such as down jackets and windbreakers, it was favored by consumers and has now developed into a high-end functional clothing brand and lifestyle brand.
Looking at the luxury goods industry in which Canada Goose operates, recent days have not been "easy". With the changing mindset of young consumers, who are more willing to invest in products and experiences with long-term and emotional value, many luxury brands are facing a moment of "demystification" - not only are the latest financial reports of top luxury groups showing a downward trend, but the "prosperity" of long queues at the entrance of luxury boutique stores is also gradually decreasing. Many brands have even slowed down their pace of opening stores and reduced their store space.
In contrast, Canadian geese have maintained a certain level of resilience. Last quarter, Canada Goose's global sales exceeded market expectations.
The three major operational policies support performance resilience, and the creative director's first capsule series will be launched this month
Behind Canada Goose's strong resilience is its long-term strategy of continuously deepening its brand assets.
It is reported that Canada Goose has formulated three key operational policies for the fiscal year 2025: laying the foundation for the next stage of brand and product development; Build a world-class high-end retail execution level; Optimize internal operational methods.
In terms of brand and product, in May of this year, Canada Goose welcomed its first creative director, Haider Ackermann, who will work closely with the brand team at Canada Goose's design studio in Paris. Haider Ackermann has unique insights in contemporary design and is highly respected in the fashion industry. He will inject new inspiration into the future product line of Canada Goose and further enhance the brand's creative aesthetic style. His joining is also of strategic significance to the brand development.
New Beijing News Shell Finance reporter learned that in order to support the Polar Bear International Association (PBI) and convey the brand's environmental protection concept of "originating from nature and returning to nature", Haider Ackermann previously designed a limited edition hoodie for Canadian geese inspired by the "Polar Bear Capital". The sales revenue of this hoodie will be donated 100% to the Polar Bear International Association. Many consumers have expressed that "having environmentally friendly ideas is worth everyone's love", "stylish designs are indeed good", "strong design sense and bright colors".
It is worth noting that Haider Ackermann's first capsule series under his leadership will be launched in November. I am extremely excited and proud of Haider's first capsule collection, and our team is fully prepared to welcome this important milestone moment, "Dani Reiss said during the earnings conference call." Haider has delved deeply into the brand's historical heritage as a source of inspiration for design, innovating our core products and emerging product categories. The new series represents our past and future. Haider's vision and respect for the brand's heritage make this new series the perfect expression of our future
To optimize the pace of new product launches, the brand strategy will also break with convention - marketing expenditures will focus on the third and fourth quarters of the 2025 fiscal year, fully supporting Haider Ackermann's first capsule series. In the second quarter, Canada Goose also optimized the pace of new product launches, focusing more on enhancing customer appeal through clear brand stories and leaving space and focus for the upcoming Haider Ackermann first capsule series in its direct sales channels.
In addition, Canada Goose is constantly innovating its product categories. In September of this year, the brand announced a long-term cooperation agreement with eyewear manufacturer Marchon Eyewear, and is expected to launch its eyewear series in the spring of 2025, including sunglasses and optical glasses, integrating iconic brand elements to enhance fashion while maintaining functionality. In Dani Reiss' view, the launch of the eyewear series is not only a enrichment of brand positioning, but also a commitment to creating lifestyle products that are closely connected to consumers' daily lives.
In terms of retail execution, Canada Goose is committed to providing superior store and online experiences in its direct business network, shifting its focus to improving retail operations and processes, and creating world-class high-end retail execution. In the second quarter, the brand added two new specialty stores globally, located in Montreal, Canada and Wuhan, China, and converted two limited time stores into specialty stores, including the Shanghai Xingye Taikoo Hui store. Currently, the number of specialty stores worldwide has reached 72.
At the same time, the brand is committed to ensuring sufficient staffing and well-trained staff in its global direct business network, optimizing shelf display, fully meeting consumer needs, and providing a warm brand experience. It is reported that the relevant measures have effectively promoted the improvement of conversion rates in the Europe, Middle East and Africa (EMEA) region, and will soon be extended to North America and the Asia Pacific region (APAC).
In terms of optimizing internal operations, Canada Goose not only continues to invest in technology and design talent to build a Paris design studio team, but also achieved a 13% year-on-year increase in inventory turnover during the reporting period.
We firmly believe that our plan will boost the overall performance of the company and lay a solid foundation for sustainable, long-term profitable growth, "said Dani Reiss.
Continuously betting on key markets, sales in Greater China increased by 5.7% year-on-year
The luxury goods industry has always had the saying 'if you win the Chinese market, you win the world'.
The way Canadian geese enter the Chinese market is different from other markets. At the beginning of its business in China, Canada Goose implemented a unique market strategy, focusing on direct business as the entry point to establish a deeper connection with consumers. Up to now, Greater China has become one of the key markets for Canada Goose, with the largest network of specialized stores for the brand. At present, Canada Goose has 28 specialized stores in Greater China, and its footprint continues to expand, from Harbin in the north to Hong Kong and Shenzhen in the south, achieving brand resonance among Chinese consumers.
In the second quarter of fiscal year 2025, Canadian geese performed well in Greater China, with sales increasing by 5.7% year-on-year to CAD 46.4 million. During the National Day Golden Week, Canada Goose performed well, achieving a year-on-year increase in sales, fully reflecting the brand's strength. In terms of e-commerce business, the brand has recently opened a Tiktok studio, which has achieved remarkable results and formed effective support for e-commerce business. Driven by the Greater China market and tourism retail business, sales in the Asia Pacific region increased by 3.6% year-on-year in the second quarter.
Dani Reiss said during the earnings conference, "We have confidence in the Chinese market and hope that stimulus policies can have a long-term positive impact. What we truly feel is that Chinese consumers can resonate with our brand no matter where they are in the world. Chinese consumers will shop in our stores located in Canada, the United States, Europe, and especially China... The past few weeks of National Day Golden Week and Double Eleven have shown positive momentum, and we also hope that this trend can continue. Chinese consumers will continue to support Canada Goose, and we are confident in this
From the WeChat official account of "Canada Goose Canada Goose", the reporter of Beijing News Shell Finance learned that in the third quarter of this year, Canada Goose had three stores in the Chinese market, namely, Wuhan SKP store, Shanghai Xingye Taikouhui store and Zhengzhou David City limited official flash store.
Among them, the Wuhan SKP specialty store is the brand's largest specialty store in central China, with a Cold Room inside the store, where consumers can intuitively feel the warmth level of different levels of clothing and choose suitable products; The Shanghai Xingye Taikoo Hui specialty store has undergone a new upgrade, incorporating sustainable development elements and showcasing a series of works created by Canadian artists to enrich the shopping experience; The limited time official pop-up store in Zhengzhou Davidcheng can be seen as an important milestone in the expansion of Canada Goose in the Chinese market. The store presents a series of items suitable for all seasons, such as hoodies, vests, and parkas.
In addition, the world's largest Canada Goose flagship store is located in Taikoo Li, Sanlitun, Beijing. The opening coincides with the brand's fifth anniversary of entering the Chinese market and the launch of its five-year strategic plan. Opening a standalone store in one of China's most well-known retail locations not only demonstrates Canada Goose's continued commitment to the Chinese market, but also provides space for the brand's "creative ideas" to be implemented. In 2023, Canada Goose designed a polar bear virtual tour experience for its flagship store in Taikoo Li, Sanlitun, Beijing, enhancing the overall experience through digital tools.
According to a report released by PwC, the Chinese personal luxury goods market will be further expanded by factors such as the continuous expansion of new consumer groups, the flourishing development of experiential consumption and luxury lifestyle, and the high growth potential of Hainan. It is expected that by 2030, China will become the world's largest personal luxury goods market with a market size of 148 billion US dollars.
It is not difficult to see from various actions that Canada Goose is very determined to bet on the Chinese market. With the return of consumer confidence and the accelerated implementation of favorable economic policies, Canada Goose's performance may have more highlights.