Latest news with #BethClymer
Miami Herald
a day ago
- Business
- Miami Herald
Luxury outerwear brand avoids tariffs as rivals try to exit China
In 2018, for my 25th birthday, my mom and I went to the Canada Goose store in Boston. I'd been eyeing one of their famously warm jackets for years, and the store's immersive "cold room" just seemed too fun not to try. This was no gimmick. The subzero chamber blasts you with industrial chill and fake snow while you test-drive your jacket of choice (okay maybe I am exaggerating on the snow part). My mom and I went in and out of that cold room at least half a dozen times, each time trying a different jacket. After some dramatic pacing and completely ridiculous over-analysis, I finally settled on a bright red coat with a fur-lined hood. Related: Key Marshalls, TJ Maxx, and Dillard's partner bets big on USA Seven winters later? I still live in that jacket. It's survived Nor'easters, icy sidewalks, and at least one impromptu snowball fight. And while that coat is built for extreme weather, it turns out Canada Goose is also built for something else: extreme tariffs. While other brands are scrambling to shift production out of China, Canada Goose hasn't had to flinch. The brand's decision to keep most of its manufacturing close to home is suddenly looking like a genius-level move in a shaky global market. Most brands treat manufacturing like a group project: outsource everything and pray it shows up on time. Canada Goose? They're more the "do the whole project yourself and get an A" type. According to Supply Chain Drive, over 90% of the company's down-filled outerwear is made in-house in Canada. That kind of vertical integration is rare in fashion and it's giving the brand a serious edge. "Our vertical manufacturing is a real source of competitive advantage for us," President and COO Beth Clymer said during the company's Q4 2025 earnings call. "We are currently leveraging this capability more than we ever have before." Related: Huge appliance brand leaving China to avoid tariffs Translation: while other global brands are redrawing supply chain maps and scrambling to diversify away from China, Canada Goose is already sitting pretty. Their made-in-Canada model means they're mostly untouched by U.S. tariffs under the United States-Mexico-Canada Agreement. Now, that's not to say they're totally immune. About 20% of their goods are still made in Europe, and that's where they've felt some sting. But with most of their key production locked down locally, they've been able to pivot fast-something that's proving harder for competitors. Canada Goose ( (GOOS) ) might be one of the few fashion brands thriving because they're control freaks. Instead of chasing trends or racing to the cheapest factory, they've doubled down on quality, ownership, and-apparently-weatherproofing their business. And it's working. The company reduced inventory by 14% over the full fiscal year and expanded gross margins to 71.3% in the fourth quarter. All of this happened while the company dodged the kind of global supply chain chaos that has bigger brands sweating through their technical fleece. Nice. They didn't even offer a full-year forecast-not out of weakness, but because they know the consumer landscape is unstable. That's not panic. That's discipline. While others rush to rejigger production and rewrite playbooks, Canada Goose is what it's always done. The same way my red jacket hasn't lost a stitch, the company's strategy hasn't needed much tailoring either. Turns out, being built for the cold might also mean being built for uncertainty. Related: Versace, Michael Kors, Jimmy Choo stumble hard The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
6 days ago
- Business
- Yahoo
Canada Goose: Vertical manufacturing an edge against tariffs
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Canada Goose is using its vertical manufacturing capabilities to adjust production to demand in a market characterized by tariff uncertainty, executives said during a May 21 earnings call. The luxury retailer manufactured over 90% of its down-filled outerwear in the company's facilities in Canada in fiscal year 2025, per an SEC filing. By coordinating its in-house manufacturing with third-party suppliers, Canada Goose was able to adjust efficiently to customer demand. 'Our vertical manufacturing is a real source of competitive advantage for us,' Beth Clymer, president and COO, said. 'We are currently leveraging this capability more than we ever have before, which is especially valuable in today's dynamic market.' Canada Goose owns and controls its entire production process, from raw materials to finished products, allowing for sourcing adjustments to mitigate tariff disruptions. With production primarily based in Canada, the brand is largely unaffected by tariffs due to the United States-Mexico-Canada Agreement, Clymer said. In the last fiscal quarter, however, tariff impacts were primarily felt in Canada Goose's European production, which makes roughly 20% of the company's products. Many brand manufacturers with more global production networks have scrambled to reduce manufacturing exposure to China to avoid hefty U.S. tariffs. SharkNinja, for instance, plans to move nearly all its manufacturing to Southeast Asia by the end of the year. Meanwhile, Colgate-Palmolive is reducing its reliance on suppliers in China while increasing the number of its U.S. manufacturing facilities. But Canada Goose hasn't fully escaped the effects of tariffs. The company decided not to release a financial forecast for fiscal 2026 because of jittery consumers in a changing economy. 'The pull of the guide and the decision not to provide an outlook for the year is entirely around what we see as a fairly uncertain consumer environment around the world,' CFO Neil Bowden told analysts. 'There's no doubt that the trade environment is choppy.' This story was first published in our Procurement Weekly newsletter. Sign up here.
