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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?
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?
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?
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?
What action is PETA planning to take regarding Canada Goose's use of coyote fur?
What precedent did PETA cite regarding its strategy of purchasing shares in companies?
What precedent did PETA cite regarding its strategy of purchasing shares in companies?
What was the opening share price of Canada Goose on the Toronto Stock Exchange?
What was the opening share price of Canada Goose on the Toronto Stock Exchange?
What is the compound annual growth rate of Canada Goose's revenue over the past three years?
What is the compound annual growth rate of Canada Goose's revenue over the past three years?
What new product categories does Canada Goose plan to develop?
What new product categories does Canada Goose plan to develop?
How did Canada Goose's stock perform by the end of the first day of trading?
How did Canada Goose's stock perform by the end of the first day of trading?
What aspect does Dani Reiss emphasize as crucial for maintaining the brand's exclusivity?
What aspect does Dani Reiss emphasize as crucial for maintaining the brand's exclusivity?
Where did Canada Goose originally start its operations?
Where did Canada Goose originally start its operations?
What is a potential risk mentioned regarding the company's strategy to introduce new products?
What is a potential risk mentioned regarding the company's strategy to introduce new products?
Which celebrities have been known to wear Canada Goose products?
Which celebrities have been known to wear Canada Goose products?
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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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