The Best IPOs to Buy for the Rest of 2017: Canada Goose
IPO Timetable: Week of March 13-17
Who says retail is dead?
Canada Goose got its start in Toronto back in 1957, with a focus on manufacturing woolen vests, raincoats and snowmobile suits. It was mostly a small business until about the 1990s, when the company expanded into overseas markets and began to offer luxury products.
In 2013, Canada Goose sold a majority of its shares to Bain Capital, which accelerated the company’s growth. Now, the company sports a valuation of about $1.5 billion.
The Canada Goose brand isn’t just luxury — it’s durability. According to the S-1:
“For decades, we have helped explorers, scientists, athletes and film crews embrace the elements in some of the harshest environments in the world. Our stories are real and are best told through the unfiltered lens of Goose People, our brand ambassadors. The journeys, achievements and attitudes of these incredible adventurers embody our core belief that greatness is out there and inspire our customers to chart their own course.”
The company’s financials are outstanding. From fiscal 2014 to 2016, the compound average growth rate of revenues was 38.3% ($290.8 million), and 85% for adjusted EBITDA ($54.3 million).
What’s more, Canada Goose has been investing heavily in its e-commerce efforts — which represent 11.4% of overall sales — and has begun rolling out retail locations in places like Toronto and New York City.
Tom Taulli runs the InvestorPlace blog IPO Playbook and is the author of various books, including Taxes 2017: Saving A Bundle. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.