Canada Goose IPO Overview

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Questions and Answers

What was the primary purpose of Canada Goose selling 20,000,000 subordinate voting shares in its IPO?

  • To expand its product lines
  • To repay outstanding debt (correct)
  • To increase its marketing budget
  • To invest in new retail locations

What strategic advantage does Bain Capital provide to Canada Goose, according to the retail analyst Ed Strapagiel?

  • Expertise in manufacturing techniques
  • Creative energy balanced with fiscal restraint (correct)
  • A strong online presence
  • Connections with international retailers

What challenge did Maureen Atkinson highlight for Canada Goose in maintaining its luxury brand status?

  • Focusing solely on online sales
  • Avoiding excessive discounting and limiting retail outlets (correct)
  • Expanding into emerging markets
  • Increasing production capacities too rapidly

What action is PETA planning to take regarding Canada Goose's use of coyote fur?

<p>Purchase shares to influence the company's decisions (D)</p> Signup and view all the answers

What precedent did PETA cite regarding its strategy of purchasing shares in companies?

<p>Previous engagements with brands like Lululemon and Hermes (C)</p> Signup and view all the answers

What was the opening share price of Canada Goose on the Toronto Stock Exchange?

<p>$23.86 (A)</p> Signup and view all the answers

What is the compound annual growth rate of Canada Goose's revenue over the past three years?

<p>38.3 (A)</p> Signup and view all the answers

What new product categories does Canada Goose plan to develop?

<p>Footwear and bedding (C)</p> Signup and view all the answers

How did Canada Goose's stock perform by the end of the first day of trading?

<p>Increased by 27% (D)</p> Signup and view all the answers

What aspect does Dani Reiss emphasize as crucial for maintaining the brand's exclusivity?

<p>Quality of products (D)</p> Signup and view all the answers

Where did Canada Goose originally start its operations?

<p>A small Toronto warehouse (C)</p> Signup and view all the answers

What is a potential risk mentioned regarding the company's strategy to introduce new products?

<p>Dilution of brand appeal (B)</p> Signup and view all the answers

Which celebrities have been known to wear Canada Goose products?

<p>Drake and Jose Bautista (A)</p> Signup and view all the answers

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Study Notes

Canada Goose IPO

  • Canada Goose Holdings Inc. (CGH) had its shares price open at 23.86ontheTorontoStockExchange,almost4023.86 on the Toronto Stock Exchange, almost 40% higher than the initial offering price of 23.86ontheTorontoStockExchange,almost4017
  • The share price closed at 21.53,againof2721.53, a gain of 27% on the day giving CGH a market capitalization of 21.53,againof272.3 billion.
  • CGH has a richer price-to-earnings valuation than its luxury retailing peers.
  • CGH's revenue has been growing at a compound annual growth rate of 38.3 percent for the past three years.
  • CGH plans to develop new products like footwear and bedding which could potentially detract from the brand's appeal.
  • CGH's CEO, Dani Reiss, believes that maintaining product quality is key to avoid diluting the brand's image.
  • CGH has grown into a globally recognized brand worn by celebrities like Drake and Jose Bautista.
  • CGH operates two retail stores and four e-commerce stores globally.
  • CGH sold 20,000,000 subordinate voting shares in its IPO, with plans to use the proceeds to repay outstanding debt.
  • Bain Capital owns a controlling interest in CGH and will continue to do so following the public offering.
  • Retail analysts believe maintaining the prestige of the brand is crucial for CGH to succeed.
  • CGH faces challenges from animal-rights activists such as PETA who have been critical of the company's use of coyote fur.
  • PETA plans to buy around $4,000 worth of shares so it can speak at the company's annual meetings and urge it to stop using coyote fur in its jackets.

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