Canada Goose Holdings Inc. filed for an initial public offering in both the Toronto and New York stock exchanges under the symbol “GOOS.”
According to regulatory filings, Canada Goose posted revenue of $291 million in its fiscal year ended March 31 2016, up from $152 million in 2014. Gross profit reached $146 million and net income, $26.5 million in 2016. Revenues grew at an annualized rate of 38.3 percent from 2014 to 2016, it said.
In the nine months ended December 31, revenues jumped 41.7 percent to $352.7 million from $248.9 million in the same period a year ago. Net income grew 26.3 percent to $45.1 million, up from $35.7 million.
The company filed with a $100 million placeholder amount used to calculate fees, but could seek to raise as much as $300 million in the sale, sources have told Bloomberg. The company is reportedly seeking a valuation of about $2 billion.
The company indicated it is seeking to expand globally and online.
“We have rapidly grown our online sales to $33 million in fiscal 2016, which represented 11.4 percent of our consolidated revenue,” it said in a statement. “We have subsequently launched new online storefronts in the United Kingdom and France and plan to continue introducing online stores in new markets.”
It also indicated that it wants to expand beyond its popular jacket products.
“Our strategy is to selectively respond to customer demand for functional products in adjacent categories,” the company said. “Consumer surveys conducted on our behalf indicate that our customers are looking for additional Canada Goose products, particularly in key categories such as knitwear, fleece, footwear, travel gear and bedding. We believe offering inspiring new products that are consistent with our heritage, functionality and quality represents an opportunity to develop a closer relationship with our customers and expand our addressable market.”
In December 2013, Bain Capital bought 70 percent in the business to accelerate its growth. It charges the company a management fee for its expertise. Bain Capital, which will continue to own a controlling interest in the company following the IPO, according to the prospectus.
Canadian Imperial Bank of Commerce, Credit Suisse, Goldman Sachs and RBC Capital Markets will manage the sale.
Photo courtesy Canada Goose