The retail sector has certainly had a rough go of it this past year. The pandemic stifled the growth expectations of investors on this otherwise consistent sector. However, with things getting back to normal, the retail sector has picked up substantially. Perhaps the retail stock I’ve had my eye on most of late is Canada Goose (TSX:GOOS)(NYSE:GOOS).
Here’s more on why investors may want to consider this retailer right now.
A retail stock with impressive growth potential
Who knew parkas could be so popular?
For Canada Goose, the company’s brand is everything. This brand has been a key driver of this company’s impressive growth. Over the past year, Canada Goose has grown more than 25% — a substantial number of any stock, let alone a retail stock. The company is now globally recognized as a luxury clothing brand.
Canada Goose’s extreme popularity is impressive. The company has been selling its iconic down-filled winter parkas for more than 60 years. However, the company only recently went public around five years ago.
Over this span, Canada Goose has provided a compound growth rate of around 22% annually. This growth hasn’t come just from North America. The company is focusing on international expansion and has made strong headway in Europe and Asia, in particular.
Canada Goose continues to diversity its product offerings. The company has recently brought new lines of light outerwear and footwear to complement its existing offerings. These product line expansions should bode well for the company long term and are a key reason why many growth investors have picked up on this retail stock.
A focused comeback
Canada Goose has its eyes steady on the prize. The company’s strong performance in recent quarters can be attributed somewhat to strong consumer demand and an economic recovery. However, the company has certainly been doing its part to boost its overall numbers.
Canada Goose has taken an active role in strategically improving its operations. Everything from streamlining its manufacturing processes to improving its distributions practices and ensuring its products are in ample supply have done wonders for this stock.
I’m of the view that this is a stock well positioned to continue growing in the years to come. This is a long-term retail play, one with short-term momentum, but strong long-term fundamentals. As the company continues to grow its e-commerce presence, I think margins can expand, and investors will benefit.
Indeed, Canada Goose is a retail stock that’s far more fundamentally sound than many of its highly valued peers. Right now, this is a stock investors looking for retail exposure should take a hard look at.
