Prospective buyers are flocking to Canada Goose with take-private bids worth almost $1.4 billion
The luxury parka-maker’s controlling shareholder is looking to offload the brand, which has long struggled to draw sales outside of its strict seasonality.
As summer comes to an end, people are starting to pull cold-weather clothes from the backs of their wardrobes… and now, it looks like several private equity firms are following suit, eyeing up Canada Goose.
Following reports that Canada Goose’s controlling shareholder, Bain Capital, is trying to offload the luxury parka-maker, a flurry of offers have rolled in from the likes of Boyu Capital and Advent International, per CNBC — with some bids valuing the company at almost $1.4 billion, sending the stock up 13% in early trading on Wednesday.
Goose bumps
Dating back to 1957, Canada Goose is best known for its feather-lined parkas, originally designed for arctic conditions. Now a high-end, heat-keeping staple beloved by celebrities and film set workers alike, the coats retail at just under $1,500 apiece. But only so many people can afford that price tag... which is perhaps why sales growth has recently ground to a halt.
A top priority for any potential buyer will be to pad out the company’s sales again, particularly in struggling markets like China, where revenue dropped ~2% for the year ending in March. That was in stark contrast to the 47% sales jump it saw in the region in FY2024.
Another concern will be diversification. Indeed, as a winter wear specialist, GOOS’s sales nosedive in the warmer months — something the company is desperate to change. Per the WSJ, Canada Goose is planning to expand its product line to become a “broader luxury player,” hoping that items such as $450 sunglasses and $400+ shoes will help to balance out earnings year-round and draw in new customers with lower price points.
Of course, this isn’t the first time Canada Goose has attempted to modernize: the brand famously went fur-free back in 2022 after years of criticism from animal rights activists.
