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Dive Brief:
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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.
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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.
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“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.”
Dive Insight:
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.”
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