Canada Goose Sidesteps Supply-Chain Snarls
By Sandrine Rastello (Bloomberg) –Parka maker Canada Goose Holdings Inc. has long touted its made-in-Canada approach to boost the brand’s appeal. It’s now pointing to it as an asset against the supply-chain logjams that are giving global retailers headaches.
With eight factories in its home country, and a habit of keeping plenty of raw materials on hand, Toronto-based Canada Goose has what it needs to meet demand this year and build up inventory next year, Chief Executive Officer Dani Reiss said in an interview Friday after the company reported earnings.
“The fact our products are made in Canada is important,” Reiss said. “It has positioned us very well.”
The company doesn’t expect any material impact from supply or shipping issues in the fall or winter, when demand for its key products peaks, Reiss said. While it does import raw materials, it always carries “a healthy amount” to react to demand, he said.
The shares climbed as much as 21% Friday after the company raised its earnings guidance for the fiscal year. They were up 20% at 11:29 a.m. in Toronto.
“The recovery of demand for lifestyle designs is demonstrated by Canada Goose’s 2Q adjusted-diluted EPS beat and early full-year 2022 guidance raise, with the company’s well-managed costs and supply chain also encouraging.”–Deborah Aitken, senior consumer-products analyst
Upbeat comments on supply chain are a bit of a rarity at a time when the world economy is stuck in one of history’s biggest traffic jams, plagued by everything from clogged ports to chip shortages.
Shipping hasn’t been an issue for Canada Goose because it mostly sends goods to China and Europe rather than the other way around. The bottlenecks, Reiss said, are primarily for goods coming to North America from overseas. The company does import some knitwear, a growing share of its offering, from European factories, but that has also been smooth, according to Reiss.
“We’re not caught up in the areas that are troublesome to the marketplace right now,” he said.
© 2021 Bloomberg L.P.
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