GOOS - Canada Goose's Store Strategy Has Fundamental Challenges
2024-03-20 18:07:04 ET
Summary
- Canada Goose is a luxury winterwear retailer known for its $1,500 parkas with high gross retail margins.
- The company struggles to implement a direct-to-consumer (DTC) strategy and faces competition from brands like Moncler.
- Goose's revenue growth has come from cannibalizing wholesale sales, and its retail model has a flaw in store utilization.
Canada Goose ( GOOS ) is a Canadian luxury winterwear retailer.
The company's parka became a fashion icon and now sells for about $1,500 at 75% gross retail margins. However, the company's desirable position is not inexpugnable, and it struggles to implement a DTC strategy.
In this article, I review the company's brand position, competition, and risks, plus its DTC strategy and problems....
Canada Goose's Store Strategy Has Fundamental Challenges