Canada Goose Holdings Inc. (NYSE:GOOS) Q2 2020 Earnings Conference Call - Final Transcript

Nov 13, 2019 • 09:00 am ET

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Canada Goose Holdings Inc. (NYSE:GOOS) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] Your first question comes from the line of Kate Fitzsimons with RBC Capital Markets. Your line is open.

Analyst
Kate Fitzsimons

Yes. Hi. Good morning, guys. Congratulations on the momentum. I guess my first question is, the growth rates in your more established markets Canada and US were very impressive in the quarter. How do you think about what's driving the demand in the home market, particularly at the wholesale Channel, as well as growth opportunities go forward in North America?

And then secondly on Asia, obviously very impressive growth there despite that disruption in Hong Kong. Can you just dig into what you're seeing in other markets as an offset? And Dani, it's been about a year since you've been in China. What would you say have been the more interesting and/or surprising learnings there more recently, just despite the fact that what's going on in Hong Kong? Thanks so much.

Executive
Dani Reiss

I think -- thank you for your questions. I think that our brand heat has never been stronger, and it continues to grow. Global awareness and affinity of our brand are in a great place, and you can see that in our results. We have significantly grown our business in all geographies, and we continue to achieve a very significant pace of growth off of a much larger base today.

I think that -- some anecdotes here, as it's gotten colder, there are lineups at our stores. We get, again, the people camping out overnight to get at some of our collaborations and to make sure they get one of them. So the demand for our products has truly never been stronger across all geographies. And to speak to China -- and yes, we've been offering there for a year and as you can see, the results have been great.

This quarter, we've almost doubled our business in China, and I think that we took the right approach there about building -- about running China from China and investing in infrastructure and offices in-country, and we think the results are showing dividends. I mean, notwithstanding, obviously, what's going on in Hong Kong and that we're hoping that could resolve itself in a positive way for everybody. But in the meantime, China is great. Demand is strong, and Chinese consumers -- our brand is really resonating with them.

Analyst
Kate Fitzsimons

Great, guys. Best of luck for holidays.

Executive
Dani Reiss

Thank you.

Operator
Operator

Your next question comes from the line of Omar Saad with Evercore ISI. Your line is open.

Analyst
Omar Saad

Thanks. Good morning. Nice quarter. I wanted to ask about -- follow-up on a lot of your comments around the supply chain, production, the inventory build.

It looks like you're continuing to kind of build that quarterly production, how much you guys are producing. Obviously, also do more in house. I think you said 50% or over 50%. Maybe you could talk about do you expect production to still ramp, whether it's internal production or with your external suppliers over the next year or two