Canada Goose files for IPO

Coyote fur-trimmed hoods have become near synonymous with Canada Goose, the down-filled parka brand that has taken the world by storm. Its international success is the key driver to the company filing for an initial public offering (IPO.)

In its filing the company said it built a strong foundation evolving into a highly coveted global outerwear brand. Over the past three fiscal years, it has grown its revenue at a 38.3 percent, net income at a 196 percent and Adjusted EBITDA at 85 percent. Over the same period the company has made significant long-term investments in human capital, production capacity, brand building and distribution channels.

In its application the company stated: "We currently generate sales in every major Western European market and, while this is where the brand first achieved commercial success, we believe there are significant opportunities to accelerate these markets to their full potential. In the United Kingdom and France in particular, we have achieved strong traction through our retail partnerships, but have yet to fully extend our wholesale network and are only in the initial phase of executing on our shop-in-shop strategy. In both markets, we launched our e-commerce platforms in September 2016 and intend to establish our owned retail presence in the near future. While the United Kingdom and France are our most developed European markets, we have identified a number of markets with significant near-term development potential, such as Germany, Italy and Scandinavia."

An IPO could value the business at 2bn dollars

Canada Goose is 70 percent owned by Bain Capital, its investment vehicle. The company hopes its IPO will value the business at 2 billion dollars. For the fiscal year ended March 31, 2016, Canada Goose's revenue was 290.8 million dollars, with a growth of 38.3 percent, as mentioned.

Risks to the business include the expense of expanding into new markets and competition. The brand was sold in 36 different countries through about 2,500 wholesalers at the end of December, the filing shows, and the company plans to expand with more stylistic options as well as lightweight outerwear, rain gear and footwear as new product categories.

Despite the company's transparent manufacturing methods, it has receives regular complaints for its use of fur. On its website Canada Goose notes: Our products are designed and built to protect against the elements in the coldest places on Earth – places where exposed skin can freeze in an instant. In these environments, we believe that fur is the best choice. Having fur trim around a jacket hood disrupts airflow and creates turbulent air which helps protect the face from frostbite.

We understand and respect that some people think animal products should never be used in any consumer products, however we do not share that view. We are committed to providing full transparency about how we make our products, including the ethical sourcing and responsible use of animal products.

Photo credit: Canada Goose, IPO; Graph, source: Quartz