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“We do not expect to have any material headwinds in supply or shipping,” said Reiss, who leads the Toronto-based company as president and chief executive officer, in an interview with WWD. “We’re not anticipating any sort of delays.
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“We make our product in Canada and that decision that we made years ago has proven to be not only a sustainable one, but one that has enabled us to be in the position that we’re in right now,” he said.
That’s a story — along with stronger fiscal second-quarter results and an extended outlook — that Wall Street liked. Investors sent Canada Goose’s shares up 16.1 percent to $46.93 in early trading Friday.
The company has all the inventory it needs to meet the needs of the holiday season — and all the raw materials it needs to make goods for next year, the chief executive officer said.
Canada Goose has factories at home that churn out parkas, knits, lightweight down and, now footwear, year-round. And while those goods are made with globally sourced materials, the company keeps supplies on hand to keep the production line moving and to react quickly to consumer trends.
The company has been an outlier in its production approach having resisted the rush to move production overseas to cut costs. Reiss has long taken pride in and touted the benefits of producing in Canada, but now the difference between making at home and making abroad has become stark.
COVID-19 forced factories in Vietnam to shut down, has huge container ships floating outside ports waiting to unload, truck drivers in short supply, containers piled up in the U.S. when they’re needed in China and more.
That means, however, there are plenty of containers headed back to China where Canada Goose is feeding a growing business and also to Europe.
“We can ship all over the world,” Reiss said.
The sudden supply chain advantage feeds into the general strength Canada Goose continues to see.
For the fiscal second quarter ended Sept. 26, the company’s net profits slid 13.5 percent to 9.3 million Canadian dollars. But adjusted profits increased 14.8 percent to 13.2 million Canadian dollars.
Revenues rose 19.6 percent to 232.9 million Canadian dollars, or up 40.3 percent excluding 28.8 million Canadian dollars in sales of personal protective equipment a year ago — when the company mobilized to help in the COVID-19 fight.
Canada Goose extended its annual outlook to revenues of 1.1 billion Canadian dollars to 1.2 billion Canadian dollars, where the firm was previously looking for something simply over 1 billion Canadian dollars.
“I think it’s going to be a great season,” Reiss said. “People are ready to have a different kind of holiday season this year and I think it’s going to fuel economic growth for us and anyone else who has inventory.”
Canada Goose is about to have more on offer with footwear set to launch in less than a week.
The brand has been moving steadily toward its own footwear since it bought the like-minded Baffin Inc. in 2018.
Reiss said the footwear performed well in a one-week presale, selling out 10 percent of the collection online.
“We’re entering the market with two amazing products,” Reiss said of the footwear, which like all the brands products are positioned as functional luxury designed first and foremost to keep the wearer warm. “We’re starting small and we’re going to grow into that footprint.”
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