Canada Goose Holdings Inc. (NYSE:GOOS) Q2 2020 Earnings Conference Call - Final Transcript
Nov 13, 2019 • 09:00 am ET
from these levels? Or do you expect the production to level off at some point? And also on the own manufacturing, do you think you get to a level much above 50% over time? Are you kind of happy where it is? And then help us think about -- I think there was a comment around building some of the core items longer term in inventory.
Help us understand that dynamic. And maybe you could frame it inventories per store or another metric that helps us understand and get comfortable with how the inventory flows through the seasons and throughout the year. Thanks, guys.
Thanks for the question. I'll talk a little bit about our manufacturing strategy. It does go all the way back to before. It was pointed out as we were going public as one of our key growth strategies that we're going to bring a lot of our manufacturing in-house by either building or acquiring new facilities.
And we've built over, I think, four-plus facilities now since then. And we've been able to bring a lot more of our capacity in-house to the point where I think last year, it was close to 50% of our manufacturing. And I think that the -- to your point of how high can that go, I think there's still room to go a bit higher than that. We don't have an absolute target, but I think that there's still room to grow.
And that is important for a number of reasons. It's important to be able to control our own destiny and to have control over our own supply chain. And also, obviously, we get to bring -- as we bring it in-house, we increase our opportunity for additional margin. And so we're really very excited to be able to do that.
And some of that has resulted in having a little bit more inventory because we obviously, in our view, it's better to have more good inventory than not enough good inventory. And the thing about inventory that's important for you to know about our company is that we're different than many in that approximately two-thirds or 75% of inventory is carryover inventory, and that's the stuff that we're making. So there's no excess inventory risk here. It's not risky inventory.
It's inventory that will be sold at full price, and it's inventory that will be available and has been available for many years. So I think that -- I'm not worried at all about the inventory and inventory risk, and that sort of inventory position is something that we're used to at Canada Goose. Even going back 10, 20 years, when we were a smaller company, we have more inventory relative to sales. It wouldn't bother us at all because that's the way our company works.
Jonathan, you want to add any color to that?
Yeah. I mean, just building on that, it's clear that we build inventory in manufacturing ahead of the curve in core products in