Jackets are on display at the Canada Goose Inc. showroom in Toronto.Aaron Vincent Elkaim/The Canadian Press
Canada Goose Holdings Inc., known for its trademark $900 parkas with coyote fur-lined hoods, is seeking to raise as much as $320-million ($240.3-million U.S.) in its initial public offering.
The Toronto-based retailer and its backers, which plan to list shares both in the company's home city and in New York, are offering 20 million shares for $14 to $16 each, according to a filing Wednesday. At the top end of that range, Canada Goose would be valued at about $1.7-billion. The company will offer 7.15 million subordinate voting shares while shareholders will offer an additional 12.85 million shares.
Canada Goose is backed by Bain Capital, which will continue to own a controlling interest in the company following the IPO, according to a prospectus filed in February. Proceeds from the IPO will be used to pay down debt and for working capital and general corporate purposes, the filing shows.
Canada Goose was founded in a small warehouse in Toronto in 1957 as Metro Sportswear Ltd., specializing in woolen vests, raincoats and snowmobile suits. In recent years it has shifted its focus to luxury consumers, targeting shoppers who drive Land Rovers rather than dogsleds.
Goose People
The company uses what it calls Goose People to help market the jackets, including brand ambassadors like Toronto Blue Jay Jose Bautista and through partnerships with designers including Marc Jacobs and rapper Drake's OVO fashion brand.
The retailer also intends to expand into other markets including knitwear, footwear, hats and gloves as well as travel gear and bedding in the coming years, according to the prospectus. It will seek to build its market share in the U.S. and Europe, in particular in the U.K., France, and Scandinavia. The company also views China as a largely untapped market.
Major risks to the business include the expense of expanding into new markets and competition, the filing shows. Another major risk would be that the company's brand gets tarnished. Canada Goose has been targeted by animal-rights group People for the Ethical Treatment of Animals, which has held demonstrations outside its stores as well as its headquarters, to protest the company's use of coyote fur and down.
The brand was sold in 36 different countries through about 2,500 wholesalers at the end of December, the prospectus shows.
In 2013, when Bain acquired a majority stake in Canada Goose, the company was valued at about $250-million, people familiar with the matter have said. Terms weren't disclosed at the time.
The company posted a gross margin of 50.1 per cent in fiscal 2016. Its revenue, which hit $290.8-million in the same period, had a compound annual growth rate of 38 per cent of the past three years. Its net income, which hit $26.5-million last year, grew at a rate of 196 per cent over the same period, according to the filing.
Canadian Imperial Bank of Commerce, Credit Suisse Group AG, Goldman Sachs Group Inc. and RBC Capital Markets will be leading Canada Goose's IPO. The company plans to list its shares under the symbol GOOS.