Canada Goose is optimistic that its fiscal 2023 income statement will not include any red figures, as its luxury consumer base remains relatively unfazed by the market’s current woes. At the Goldman Sachs Global Retailing Conference, the company said the North American market will remain very healthy in 2023, while demand in Asia is strong, but some lockdowns will dampen sales. The EMEA region is now the main concern with the ongoing war in Ukraine, the looming energy crisis and inflation.
Where sales will end up precisely in the current forecast of between $1.3 billion and $1.4 billion will depend mainly on mainland China. The low end assumes moderate traffic disruptions and occasional store closures, while the high end would mean more normal trading levels ahead of the peak selling season. Elsewhere in the APAC region, the new joint venture in Japan is underway, opening the market to a larger DTC mix comparable to the rest of the world. While Korea remains a distribution model, the Canadian company is looking for a new partner to strengthen its brand. Management hopes that a boost in Korea will mean a flywheel effect throughout APAC since the country has been cited as a trend-setting society for both Chinese and Japanese consumers.
After launching footwear last year, the company has identified the women’s collection as another blank spot, as luxury apparel is traditionally 60:40 female, and the company’s sales are split 50:50. As a result, Canada Goose is launching its first exclusive women’s collection later this month. It is also increasing its focus on warmer regions such as the U.S. west coast, as products outside its core heavy down parka business now account for 30 percent of sales. After opening its first store in California last October, followed by a pop-up store in Seattle that is planned as a permanent fixture, at least two more stores will open in the region this fiscal year.
