Canada Goose Holdings Inc. (GOOS) Earnings Call Transcript & Summary

Hello, everyone. [Foreign Language] Today, we are gathered here in Tkaronto, which is also known as Toronto and virtually around the world. In Mohawk, Tkaronto means where there are trees standing in the water. Today, Tkaronto is covered under treaty #13 and the Williams Treaties. It is the traditional territories of many first peoples, including the Mississauga, Mississaugas of the new Credit, the Anishinaabe, the Chippewa and the Haudenosaunee and the Wendat people. As we gather here today, these nations continue to experience ongoing colonization and displacement where land acknowledgments are offered in place of land itself. This territory is part of the Dish with One Spoon wampum, a treaty made between the Anishinaabe, Mississaugas and Haudenosaunee where nations entered into an agreement to protect the land and the responsibility to care for its resources in harmony together. As settlers, newcomers, refugees and indigenous peoples, we have all been invited into this treaty in the spirit of peace, friendship and respect. We are also mindful of broken treaties that persist across Turtle Island today and recognize our responsibility as treaty people to engage in a meaningful continuous process of truth and reconciliation with all our relations. So in the very beginning, I introduced myself in my native language of Anishinaabemowin, but I'm known as Sarain Fox, and I'm a storyteller. I'm a filmmaker, an activist and a Goose person. My relationship with Canada Goose begins at one of the most iconic hubs for storytelling in the world, the Sundance Film Festival, where my first documentary series, I hosted called RISE, premiered. Since then, I've had the honor of appearing in several Goose campaigns, including the launch of the first-ever footwear campaign last winter. The opportunity to share my story with the world and the Canada Goose platform has been nothing short of revolutionary. In fact, the generations of Warmth campaign that featured my mother and I in 2018 was the first ever international billboard campaign to feature multiple indigenous people. It's really huge guys. I am so proud to be a Goose person. This iconic title has come to be known as someone who embodies the essence of Canada Goose. Human beings that push boundaries, strive for change and explore the very depths of our own human nature. Goose people inspire us to go further, see beyond the horizon and live in the open. With that, I welcome you all now to this land, and I'll turn it over to Amy Schwalm, Vice President of Investor Relations. [Foreign Language], and thank you.

Good morning, everyone, and thank you for joining Canada Goose's Investor Day. Our presentation today, including the Q&A portion, contains forward-looking statements. Each forward-looking statement, including our financial outlook, is subject to risks and uncertainties that could cause actual results to differ materially from those projected. Certain material factors and assumptions were applied in making these forward-looking statements. Additional information regarding these forward-looking statements, factors and assumptions is available in our press release issued February 2, 2023, and this morning as well as in the Risk Factors section of our most recent annual report filed with securities regulators. Please also refer to the disclaimer section or disclaimer slide on the screen. This presentation will be available on the Investor Relations section of our website. The forward-looking statements in this presentation speak only as of today, or as of the date they otherwise refer to, and we undertake no obligation to update or revise them. Lastly, our commentary includes certain non-IFRS specified financial measures. Additional information, including definitions of and reconciliations to the nearest IFRS measure can be found in our Q3 2023 MD&A. Now turning to the agenda for today. You'll be hearing from a number of leaders across our company. We do ask that you hold your questions until the Q&A session at the end of the prepared remarks. We will also take online questions at this time, too. The webcast portion of the event concludes at the end of the Q&A. And with that, I will turn it over to our Chairman and CEO, Dani Reiss.

Good morning, everybody. And welcome to all of you here at Toronto headquarters and to everybody else joining online as well. I'm really, really excited that you could all be here with us today. It's great to see so many familiar faces that -- yes, I'm going to -- before we -- yes, this hasn't happened since the IPO in 2017. And I'm super excited that we can all get together again today and share our 5-year vision with you. So before we begin, let's watch this video that recaps some of our important milestones since we -- that we have achieved since our IPO in 2017. [Presentation]

Today, marks our first Investor Day since going public in 2017. And as you can see, we've been really busy. Behind me, you see an image of our new global headquarters -- what will be our new global headquarters. This summer, we're set to take our place amongst the Toronto skyline. And I know that I'm really excited about this new space and what it means for Canada Goose. And I really, really look forward to welcoming all of you there at some point in the future once we've moved in. It's going to be awesome. So today, our leadership team and I have the distinct pleasure providing all of you an update on our business, our vision and our strategy. Now we're going to show you how we plan to accelerate our growth, targeting $3 billion in revenue with adjusted EBITDA of 30%, all within the next 5 years. Now today, Canada Goose is recognized around the world as a true luxury lifestyle brand. And we've gotten there by staying authentic to who we are. So when I was thinking about what I was going to say today, and I didn't want all of this to sound like a script. I remember back to a story that I told in 2017, as we were meeting with analysts before our IPO. And as I mentioned earlier and looking at it today, I see a lot of familiar faces, and I chatted with a bunch of you earlier we become reacquainted with. So the sort I'm referring to is the story about Dumpling house in Osaka that has been around for hundreds of years, the restaurant spent centuries perfecting their craft. And ultimately, they become world renowned for it, for staying true to who they are, for being authentic. And back -- bring it back to today, and that story felt like an appropriate place for me to start today. Japan for me, it holds a special place in my heart, the culture, the tradition the heritage and the tradition. And every time that I visit Japan, I'd leave it inspired try to go there have been there, well, at least once a year for the last 20 years. It was there that I learned the importance of staying pure and authentic and that what our real brand, real brand is. And I have my own personal tradition when I go to Japan, I want to stay there every time I go, I visit Meiji Jingu, which some of you may know, a Shinto shrine in Harajuku, Tokyo. This is an ancient shrine that sits in the middle of one of the biggest cities in the world, a temple of tradition nestled in this modern metropolis. And for me, Japan and Meiji Jingu are a North Star for me. And so in 2017, we sat in front of the room much like today and later what we would accomplish in the next 5 years. And then fast forward to today, and I'm proud to say that we accomplished everything that we set out to do and more. And we did that by following our North Star. We did that by staying true to ourselves, executing against our vision and keeping our brand pure by being authentic. During our IPO, I said going public won't change us and it hasn't. Don't get me wrong, being a public company is different, but our approach has not changed. Our team helps keep the Canada Goose flame. It's our authenticity that has gotten us to where we are today and continuing to stay true to our brand is what will get us to where we are going. Today, you're going to hear about our plans for the next 5 years, what we are setting out to do and how we're going to do it. And I'm personally very confident that we will, as confident today as I was back in 2017. We know how to execute, our track record shows that. Today, the windows at our back, our vision is clear, and we know who we are. And that is how you build an enduring brand, live by your North Star. We are a brand like no other, Canadian-based and built in the European style of iconic luxury brands. So what does that mean? The following: we take annual price increases and we don't have discount; our supply chain is vertically integrated and our DTC margins reflect that; we control our distribution, and we create icons; consumers know and trust us as a performance luxury brand. Among our competitors I can say that we consistently rank in the top 3 across the most important performance and luxury attributes. Within performance, we own warmth, and we're also known for durability, craftsmanship, high quality and being Made in Canada. And within luxury, consumers love to be seen wearing Canada Goose. We are iconic, distinct, stylish and exclusive. Our brand sits at the intersection of performance and luxury. That is a sweet spot ahead of us to drive growth. My vision for this brand was to take the decades of experience that we had in making the warmest outdoor in the world and to create a luxury consumer brand. We didn't realize at the time how daring that vision was but we knew that what we had was absolutely unique. The more we shared our product and told our story, we captured the hearts and minds of consumers all over the world. We made bold decisions like keeping our manufacturer here in Canada. At a time when many were offshore in their production, we knew that controlling our own destiny would set us apart. And that's a decision that would ultimately become a defining tenet of our brand, decision that would help drive Canada Goose to incredible heights. From $2 million in sales in my first year as CEO, to approaching $1.2 billion in fiscal year 2023. We did bring Canada Goose to the world. And we did that by partnering with leading luxury retailers and more recently by opening and expanding our own DTC business, as you know. And not only that, we've taken a brand beyond our iconic Parkas, adding lightweight down, wind and rain jackets, apparel, accessories and most recently, footwear. Since going public, we have made incredible progress. As of today, across all of our channels, we sell in 62 countries. And during our fall/winter 2022 season, we sold through over 1,500 wholesale points of distribution. We operate 51 permanent retail locations, and we're online in 57 countries around the world. Looking ahead, as you see behind me, there's incredible opportunity to continue our meaningful expansion. You'll hear much more about this later on today -- throughout the day. Bringing our brand to more people around the world and growing our mix of direct-to-consumer business has been a focus for us and our company since we launched e-commerce in Canada in 2014. And since 2017, we have grown our direct-to-consumer business from 29% of total revenue to nearly 70% of expected revenue in fiscal 2023, and we can go even further than that. Engaging with our customers directly, where -- how they want to shop has deepened our relationships with them, driven higher profitability for our business and ultimately has strengthened our brand. The foundation of our operations is one of a kind -- is our one of a kind demand in Canada manufacturing infrastructure. Our owned operations are complemented by both Canadian and contracted facilities and 14 international manufacturing partners, mainly based in Europe. These partners provide us the flexibility to scale our production and to offer specialized expertise to support our category expansion. So turning now to the future. By fiscal year 2028, we expect to deliver a compounded annual growth rate of 20% in revenue and $900 million in adjusted EBIT, up from roughly $180 million expected in fiscal 2023. I'd like to take you through the 3 pillars of our plan: first, we will accelerate our consumer-focused growth. We know that consumers know, love and trust us for our quality craftsmanship as the ultimate purveyors of warmth and protection, but we want to go deeper with them. We plan to intensify our customer relationship marketing to build stronger connections with our clients and to bring new consumers to our brand. We believe we've got significant opportunity to grow lifetime value. Now we see this opportunity too and our continued focus on women, making sure we're delivering the right product for her and making sure that she falls in love with our brand as a key component to this. Today, women represent approximately 48% of our sales, which means we have a lot of room to grow to reach a luxury average of more than 60%. We've also set our sights on increasing the number of younger consumers that shop with us. Gen Z represents a significant segment of the global luxury market today, and it's a group that we already do quite well with. We have a long legacy of driving relevance with younger generations. Second, we will continue to build our DTC [ data work ]. With more than double our retail footprint growing from the 51 permanent stores we operate today. We see opportunity in new markets around the world and deepening our penetration of existing markets and evolving our structure in others, reaching consumers directly, much like we've recently done with our joint venture in Japan. Now traveling around markets around the world, as I do. I know the opportunities out there, especially as we continue to expand our category offering. Third, we will create new and expand existing categories rapidly. Category expansion will add to the heritage we've built across our existing categories. As well, we plan to further drive our year-round relevance by expanding into new ones. Our vision has our consumers shopping with us for all their wardrobe and accessory needs. Over the years, we've established a proven track record of building and growing new categories. We've really learned a lot, and now we plan to take that depth of understanding and accelerate our category expansion. So I'd like to transition from our growth drivers and highlight an area that's incredibly important to me and to all business today, frankly, and that is corporate citizenship. We've always been -- we have always endeavored to be a company that's good for the world. And in 2020, we codified that commitment through our human nature platform. Our purpose is to keep the planet cold and the people on it warm. Our human nature reporting details our bold commitments under our sustainable impact strategy. These include our commitment to achieve net zero carbon emissions for Scope 1 and 2 by the end of 2025. As well in 2021, we reached RDS Certification as a brand and as a manufacturer, and we have committed to 100% sustainable packaging by the end of 2025. It was also through a commitment to sustainability that in 2021, we announced our decision to go for free. And as of December 22, we ended manufacturing with fur. Our commitment to being a company that's good for the world runs deep and our actions speak louder than any marketing campaign ever could. So much of our success is due to the exceptional efforts of our experienced leadership team, and today you will hear from many of them. There's 1 update regarding a new addition to the team that I'd like specifically to highlight. As part of our focus on digital experience and its importance here at Canada Goose, I'm really pleased to share that we have created a new role, Chief Digital Officer. This role will be responsible for all consumer-facing digital platforms, and will be reporting directly to me. I do look forward to sharing more detail on this role and this hire in the coming weeks. On behalf of the leadership team, I know we are all super excited to share our plans with you today, and we're all very confident in them and believe that we will achieve them. Execution is in our DNA, and our track record speaks for itself. Earlier today, I said we accomplished everything we set to do in 2017 and more. And as you can see, we have done that. And more importantly, we've over performed on every metric. That's the track record that we've built since going public. And I also think it's important to note that as we execute against our strategic growth levers that we do so responsibly. We will focus on investing where we see high return, protecting our brand and delivering high-quality, profitable growth just as we have since our IPO. Through the pandemic, as we continue to activate against our growth plans, our margin has been impacted. This was a strategic decision to put our business in the best possible position to capture demand following COVID. Looking ahead, we will be laser-focused on aligning costs and driving profitable growth. Jonathan will speak much more about this and our plans when he summarizes our financials later today. So with that, thank you, everyone, once again for being here. Super exciting to be able to do this in person. And I really hope you enjoy the day today. And now let me turn the presentation over to Penny.

A warm welcome to you all in this room and on the line as well. My name is Penny Brook, and I'm the Chief Marketing and Experience Officer at Canada Goose, and I'm thrilled to be with you here today. Before I begin, I hope you don't mind sharing a little bit of my adventure with Canada Goose, which started in Amsterdam. It was an incredible time of opportunity and change. I've just become a new mom. And then I got the big call offering me some incredible opportunity to bring Canada Goose to Europe and ultimately to the world. In those first years, almost a decade ago now, I had the opportunity to see what makes this brand truly special. I had the privilege to visit our factories and be inspired by the skills of the sewist that have been working with us to literally generations. I spent time in the high Arctic, and I saw those living in the harshest of conditions and how they can live in harmony with the land. I got the first hand -- I got to see firsthand the work of charities that Canada Goose supports like Polar Bears International, and what they do in Church Hill Manitoba, where they work tirelessly to monitor and protect the world's Polar Bear populations. All this to say, very early on, I felt the power of this brand, a brand that truly leads with purpose, and in many ways, that's why 10 years later, I'm proudly standing here today sharing Canada Goose future and present with you. Today, I'll be speaking to the first lever of our growth plan, accelerating our consumer-focused growth. Firstly, I'll discuss how we lead with community and our distinct approach to experience. Secondly, I'll speak to our global consumer today. Our target consumer set moving forward and the incredible campaigns and communications we've built to attract and engage consumers. And finally, I'll cover how we're putting the consumer first, unlocking the power of community through key investments in CRM capabilities. As Dani spoke to you about earlier, Canada Goose is a performance luxury brand. And just a defining characteristic of luxury is the shopping experience. I believe it's important that we start by sharing our distinctive approach to experience at Canada Goose and that's Canadian warmth. We define Canadian warmth as warmth in every interaction and expertise behind every recommendation. Through warmth, we strive to bring that but for Canadian humility and human touch to the retail experience. And expertise is our promise to connect consumers with a product that performs best to suit their needs. The traditional shopping experience can be cold and austere. It's engineered to feel exclusive and actually sometimes unattainable. At Canada Goose, we are focused on breaking that mold. We are democratizing the luxury retail experience. We are approachable, expert and aspirational. We believe our experience proposition is a differentiator for us in Luxury. At the core of this engagement strategy is our base camp community. Our base camp database is globally representative with higher concentrations in our focused direct-to-consumer markets. Base camp helps our community to thrive. It's an offering of unique programming that brings our brand to life in a way that's innately tangible and meaningful to our most important clients whether it's a live in the open panel talk with a claimed Arctic Explorer or winter well-being workshop or an exclusive preshop event for a sort-after collaboration collection. We bring Canadian warmth to life. Base camp ladders up to our promise to inspire and enable all people to thrive in the world outside, and it's how we unlock deeper brand loyalty, and in turn, maximum potential lifetime value of our customer. As we look to take base count to the next level, we are taking a market-by-market approach to driving deeper connections with our community on a more personal level. Our warmth program serves as our platform from which we deliver an overarching Canadian worth experience tailored for regional relevance. A great example of this is Warmup London. Our activation that we launched in Regent Street in October of last year. With Warmup London, we brought enhanced experiences partnering with local brands and launch new services like complementary dry cleaning. Compared to the same period last year, we saw base camp membership grow by more 50% during that period. And we saw store sales increased by 27% year-on-year in the month of December. We plan to roll out Warmup program to key global locations, and I look forward to sharing so much more of that with you next time. Now turning to our typical client. Canada Goose is a global brand that resonates across all ages across the world. Let's explore their profile in a little bit more detail. According to our brand research, we over-index in high-income individuals, which speaks to our luxury positioning. And our client base skews younger than our competitive set. Globally, our strongest cohorts of Millennials and Gen Z, representing approximately half of our business. This helped is advocacy from a younger generation, and it's a great barometer of our long-term opportunity to develop a long and deep relationship with them and a testament to the strong relevance we've built already. We have a huge opportunity to build even greater affinity with women. This is even more notable when we layer over women that are Gen Z. Now starting with women. As Dani mentioned, women typically account for more than 60% of luxury spend with any given brand. And as of today, women account for approximately 48% of our clientele and revenue. Our focus is to bolster that and reach agenda split more in line with the luxury industry. Our global brand guidance study tells us consistently that women love our brand and want to engage with us more. We have heard from them that they view us as a brand, they trust for function and quality and classic style. However, we've got work to do in moving their perception of us when it comes to style and design. Women are looking for more from Canada Goose, something purpose-built for women that leads into style and versatility while maintaining our signature warmth proposition. We understand what women want from us and are actively meeting their expectations by focusing on evolving our assortment and marketing to cater to their needs. We will continue to invest with purpose and conviction to drive this higher. Our marketing strategy hones in on the opportunities to drive deeper emotional connections with women of all ages. We are focused on strong storytelling. We work with bold and brave women that live in the open, both physically and emotionally. In September of last year, we had a woodshed moment. We set out to evolve storytelling to drive greater relevance with women. This moment was about celebrating women, inspiring them to live boldly and bravely and enabling them to thrive in the world outside without having to compromise on style. It represented a new mindset, an invitation to embrace their true selves and seek the greatness within. One of the ways that we conveyed this message was through the incredible talent we chose to work with. We wanted to use our platform to tell stories of women who truly embody our Live in the Open mantra. Jodi Turner-Smith, Khadijha Red Thunder, Soo Joo Park are all known for challenging the status quo and pushing boundaries whilst remaining true to themselves. So let's hear from them. [Presentation]

The campaign was shot as you saw by Annie Lebovitz. She is the embodiment of a trailblazer, an authentic female icon within the industry who has changed the world of photography and paved the way forward for women who want to follow and have footsteps. By working with her, we not only shared an opportunity to tell an important message to our community, but we also created enduring art that will become part of Canada Goose's legacy. It is this type of world-class execution, delivering against key strategic priorities that will form the foundation of our campaigns going forward. Another example of our focus on bringing women, specifically Gen Z women into our brand was our collaboration with Reformation in December. The collection featured whimsical prints, bold colors, responsibly sourced down and recycled materials. The campaign accompanied the launch was shot in Upstate New York featuring an all-women cast living boldly in the outside surrounded by beautiful vistas. The collection, one of our largest by volume performed strongly against our expectations, especially in North America. This is exactly the fresh brand perspective and disruptive design that will help us capture the attention and inspire imagination. Now our second target group, Gen Z. The luxury consumer is getting younger. Gen Z is expected to represent up to 30% of the luxury market in 2030. So engaging this younger generation and maintaining our relevance with them is a top priority to us. We are starting from a position of strength. More than half of our client base is under the age of 35. Now as you know, the drivers of purchase decisions for Gen Z are markedly different to other generations. They value luxury, high-quality, long-lasting products. They care about social and environmental issues, and they expect brands they shop with to do the same. Again, Canada Goose is starting from a position of strength with this demographic. We have always been a purpose-led brand. Sustainability and corporate citizenship have been ingrained in our brand since inception. This includes our product lifetime warranty, our Made in Canada commitment and our 15-year relationship with Polar Bears International, and our transition out of fur to name just a few. HUMANATURE was born from our belief that to be human is to be a part of nature. It comes to life through our ESG strategy and our CSR initiatives. Product, design, culture, our celebration and support of communities as well as arts and entertainment. If we double-click on the kind Fleece Collection, and altogether new innovation featuring part based materials with a significantly lower impact on the environment compared to the polyester fleece. The collection launched with an inspiring campaign and was a remarkable success. Gen Z are also at the forefront of pop culture and they gravitate to our relevance and cultural collections. Be it our multiyear collection with the NBA All-Stars, our virtual collection with NBA2K, where we're actually the #1 non-endemic brand in Season Street or our sellout collaborations with brands like OVO and Concepts, we know cool. Let's check out our latest NBA All-Star campaign. [Presentation]

As you can see, we are meeting these consumers where they're at, and we are scaling up our digital and content media strategy globally. We have a huge opportunity here given that our historic growth has actually been mostly organic. Looking ahead, we've begun an aggressive investment in both content and media to actively pursue this opportunity to grow Gen Z. In the last 12 months, we have seen a complete transformation of our social media presence focusing on the content that really matters against 8 different categories. Influencers and content creators are perceived to the most relatable source of authority by their followers, and they help us reach new audiences, grow awareness and drive consideration. Our Goose people are seen as a trusted source of authority inspiring our audience to thrive in the open while demonstrating the performance credentials of our products. Take user-generated content. This amplifies a sense of belonging, uniting communities in an inclusive environment. Sharing UDC is a really good way of democratizing the outdoors prove that everyone can thrive in the world outside. And the all-important celebrities with whom we have a long and authentic history, both in front and behind the lens. They are an authority and drive credibility and relevance and deepen our connection with pop culture. Sustainability, as we've discussed, sustainability is a significant driver for the younger generation, and we see strong engagement across our sustainability-focused content. This is an important category for us, and one that demonstrates credibility fosters discussion and conveys our purpose. Then take our community-first content. Our community-first content goes deeper into the Canada Goose story, going behind the scenes into our campaigns and activations. This content creates connection, inspires and demonstrates what it really means to live in the open. And then our all-important product. Our community loves our product, and our product consistently performs extremely well across all of our channels. Now our focus is on elevating our product and presenting it in new and stylish ways. And finally, functionality, the last category but perhaps the most playful. This is where we highlight the thought, intention and deliberate design that is imbued across all of our products. Through our focus on these categories, we are delivering the content that's most meaningful relatable and engaging to our key consumers, and I'm excited about the heights that our community will reach. Finally, I'd like to speak to the strategic investments we are making to underpin all of this effort, our investment in CRM. This is how we will deliver Canadian warmth and its experience to reach our community in an even more meaningful and engaging way. The foundational investments we are making provide a single view of the client, which allows us to personalize our engagement through all touch points. Our goal is to maximize loyalty, repeat purchase and share of wallet with our existing clientele. We have a huge opportunity to drive growth revenue, product expansion and cost optimization by growing the volume of and increasing engagement with repeat customers. Take this fiscal, 30% of our customers around the world were repeat customers. On average, repeat customers spend 2.3x more with Canada Goose in their lifetime versus a onetime purchaser. And on average, repeat customers are more likely to purchase non-heavy weight down after their first purchase. We also know the cost of engaging a repeat customer is much lower than the cost of acquiring a new one. As such, we are laser-focused on reengagement efforts, which gives us an opportunity for revenue growth through new repeat customers and greater, deeper business with our existing customers. Product mix evolution as we increase interest in non-heavy weight down products; and lastly, higher ROI and spend efficiency as it's less costly to engage these individuals. Finally, we see significant growth opportunities in our new and non-heavy weight down categories. We have robust campaigns designed to increase awareness of these product categories, and present Canada Goose as a year-round performance luxury brand. A really good example of this was our inaugural footwear collection with Gen Z celebrity Romeo Beckham, along with Goose people Sarain Fox who you met earlier and Jordin Tootoo. The campaign drove mass awareness of our new category and was capped off with a VIP event in London that you see behind me. Through our globally activated integrated launch, we captured billions of impressions globally. Our footwear launch was our most widely marketed campaign of any category launch in our brand's history. This is how we launch categories. This is how we win at Canada Goose. It's been an absolute pleasure to share our strategy with you today, the first lever of our growth plan. accelerating our consumer-focused growth. Our Canadian warmth experience proposition sets us apart in luxury. We know our consumer well but we will know them even more and what motivates them and how they will create a deeper connection with us and them and all to a much more sophisticated level than ever before. And with that, I'll turn it over to Carrie, who will speak to our second lever in our growth plan, building out our D2C network. Thank you.

Thank you, Penny, and good morning. We have all been looking forward to this so much. We're really excited to update you on our 5-year strategy. So I'm thrilled to have you here today. As you've heard today and we'll hear throughout the presentations today, Canada Goose is known around the world as a performance luxury lifestyle brand, steeped in heritage with unparalleled craftsmanship and quality and timeless style. As we've grown, we've stayed true to our commitment to and luxury positioning, bringing more Canada Goose to the world in an authentic and sustainable way. Having been a part of this incredible journey for more than a decade, I've had more than my fair share of once-in-a-lifetime moments with Canada Goose. From introducing the magic of Canada Goose to prime ministers, presidents, ambassadors around the world, to seeing our celebrity seeding outfits go viral, to climbing Mount Fuji with Goose person Laurie Skreslet, or having actor Daniel Radcliffe, tell me personally how much he loves his Canada Goose jacket because it's impossibly warm and impossibly light. I really have had the pleasure of so many showstopper experiences. But they truly pale in comparison to that moment when you open the doors of 1 of our new stores. You see our team welcome people from the lineup outside. They deliver that Canadian warmth experience that sets us apart, and that's why I'm especially excited to share where we're headed next. Today, along with our regional presence, I'll be speaking about our second growth lever, how we plan to build our DTC network. To help paint the story, I'll be covering 3 things: first, our global brand strength; second, our approach to distribution; and finally, an update on some exciting new channels. In luxury, brand strength is everything. And today, the Canada Goose brand has never been stronger. And that's not us just saying that. It's a result of the consumer research we do every year, twice a year. Dani mentioned earlier that research tells us amongst major markets globally. We consistently hold a leadership position in key attributes against our competitive set in both performance and luxury. Leaning into those critical brand attributes, has helped Canada Goose become the performance luxury lifestyle brand that we are today. And that affords us a very powerful platform from which to grow. And while we don't do what we do to win awards or accolades, we are proud to have been included in Deloitte's Global Powers of Luxury Goods report in 2022. And that highlighted for the fifth year in a row, Canada Goose as one of the world's fastest-growing luxury brands. So what does that brand strength mean when it comes to growing this business? Well, it starts at the top, very top of the funnel with brand awareness. Today, our global aided brand awareness is 57%. Not surprisingly, awareness is highest in our home market here in Canada at approximately 90%. We're also firmly established in the most important luxury destinations of the world, including the U.K., France and Mainland China, where our aided brand awareness reaches 60%. We're also seeing growth in other priority markets, including Germany, Japan and particularly in the U.S., beyond the Northeast at approximately 40%. And that strong awareness leads to very healthy purchase consideration. In our key markets of Canada, the U.S. and the U.K., there is no other brand that is searched more when it comes to Parkas than Canada Goose. And that's a strong place to build from into other categories. That consideration then translates into very high purchase intent. Consumer research confirms that we've built high intent to purchase around the world, particularly in growth markets like Mainland China, where 68% of people who know our brand intend to buy our brand in the next 2 years. And in the U.S., the largest luxury market in the world, that number is 27%. But we all know you cannot take intentions to the bank. So while we're happy with the incredible brand strength and our healthy funnel metrics, we're not ones to rest on our laurels. And we have a long way to go before we can say we've truly conquered the world. 65 years in and we're still early in our growth story. We've got incredible opportunity worldwide, particularly in existing markets. So as I mentioned earlier, we are strongest at home in our home market of Canada. Consumers here have grown up with us. They trust us to keep them warm and they love the new products that we're bringing to market. We continue to see very high unit penetration annually with local addressable consumers. If the rest of the markets we currently serve, bought just half as many jackets as Canadians do, we triple the unit volume we expect to see this fiscal year. And while that growth potential is what gets us excited, we believe there is even more to play for. We estimate a total addressable market valued in the $60 billion range, and that doesn't even include Japan, Korea, France, Germany or the rest of Europe. Our 5-year goal is to own just $3 billion of that market. So as you can see, 65 years in and we still have a ton of opportunity ahead. So let me get into how we're going to capitalize on that growth opportunity that we see and talk about how we approach our distribution. I think it's important to understand how we think about all of our channels. Based on the commitment to do what's best for the consumer, we believe that all channels have a distinct, meaningful and complementary roles to play. E-commerce, that's typically where a consumer is getting their first glance into the brand, offering convenient and comprehensive access to our full range of products. It's a highly profitable channel and it unlocks access to consumers in every part of the world. It also gives us an early read on where consumer demand lives. Then looking at retail, our stores are the pinnacle experience in every way. A brand immersive luxury experience with guided expertise to inspire and serve our highest intent purchasers. This is the place for people to learn, to discover, to test and fall in love with our full offering. And then wholesale. This is a channel that gives us geographic reach and the opportunity to engage new consumers and test emerging categories. So let me share a little more color on each of these channels and how we approach their mix. Starting with e-commerce. Our first DTC channel and to this day, we continue to employ a digital-first approach to market expansion. We're currently online in 57 countries, and we expect to open up many more over the next 5 years. We have invested with purpose in our digital platform, enhancing performance and functionality through a luxury lens. In fall 2021, we launched an enhanced digital flagship in North America, which was followed by EMEA last fall. This flagship site offers an enhanced shopping experience, deeper storytelling, enriched content and just a much improved purchase journey. Since launching, we've seen marked improvement in our conversion rates as well as our UPT. Success in e-commerce world, though means constant improvements as we learn more about what our clients needs and as we see the ability to leverage new technologies. Our focus is on serving up the most relevant product through a personalized journey and making it as easy and enticing as possible, all adding up to the luxury experience they expect from Canada Goose, the one that keeps them coming back season after season, year after year. At the same time, we all know that consumers aren't single channel shoppers. Online and stores have to be a connected ecosystem that must offer seamless service no matter the environment. We've extended our digital capabilities to our brick-and-mortar stores through omnichannel functionality. Once again, driven by our consumer-centric mindset, the power to bring an endless aisle has been a true unlock, both experientially and financially. It allows us to better serve clients in the moment, facilitate fast delivery and minimize return rates. Currently, our North American stores offer omni functionality, and we plan to expand our capabilities to the U.K. this month and Europe in the near future. I look forward to sharing more on our digital plans and success, especially as we welcome our new Chief Digital Officer to our leadership team shortly. Now turning to our retail stores. As Dani mentioned, we plan to more than double our existing global fleet of owned retail stores to well over 100 locations in 5 years. Let me share some perspective on how we think about our stores. We don't employ a one-size-fits-all approach, but they do all have some common criteria. And it starts with being highly selective, which cities, which malls, which high streets and what size of store. We base all of those decisions on demand indicators that we see from the local market. Today, you can find Canada Goose stores in the best locations, in the best cities in the world, including Toronto, New York, London, Paris, Milan, Hong Kong, Shanghai, Beijing and Tokyo to name more than a few. Our largest stores showcase a comprehensive category and product assortment with depth in SKU, color and sizing. They're usually home to our award-winning snow or cold rooms and are built as a footwear destination. Our target operating margin for these stores is 50% or more. Our smaller stores provide an equally powerful experience but through a very curated category and product assortment based again on what local demand dictates. Our target operating margin for these stores is 40% or more. And as you may have seen, we also operate limited pop-up and temporary stores. These stores are open typically 6 months to a year, allowing our teams to test and learn before opening a permanent store in the market. Whether they're delivering a new creative environment, a specialized product assortment or a catering to a cultural moment like NBA All-Star Weekend or Sundance Film Festival, their assortments are tailored to their size, local relevance and demand. These stores have an operating margin similar to our small format stores. So here's a look at our stores from a metrics perspective. As I said, our stores range in size, but our sweet spot today is around the 3,000 square foot. Our target store productivity is approximately $4,000 per square foot, and our average CapEx is approximately $1,000 per square foot. In terms of operating margin, our target is 40%, and we target payback within 12 months. We're laser-focused on accelerating towards these targets in all stores and expect our investments in CRM, clienteling as well as our expanded year-round product offerings will get us to those goals. These will be the key unlocks to improved operating margins, which Jonathan will talk about more later. With 7 years under our belt as a retailer, we have learned a lot about what works for us in DTC. We also learned a lot about where we have room to improve. The fundamentals are strong. So our energy is focused on how to optimize, inviting more people through the doors more often, increasing seasonal purchase levels and with each visit and carefully managing our costs while still delivering that exceptional luxury service. Now turning to wholesale. As we accelerated our DTC expansion, we've maintained wholesale distribution because multi-brand stores are still an important part of the luxury consumers world, but we've done it strategically. Today, our wholesale business is a highly curated expression of Canada Goose and includes best-in-class partners and influencers, such as Selfridges, Walt Runthrough, Neiman Marcus, Gallery Lafayette, Essence and Harrods, among others. By partnering with the very best retailers around the world, we're able to reach highly qualified consumers, show up in unique commercial and luxury settings or in markets where we simply don't need to have our own physical presence. We'll rely on this channel less and less in the future, and it's a constant evolution as we actively rationalize specific distribution points that simply no longer serve our customer. Our current footprint shows this effort down from the roughly 2,500 points of sale we had in 2017 to the 1,500 that we have today. As well, we are actively adding new influential accounts like the Webster and Hirshleifers who consumers see as trend setting. For these channels to play the complementary roles that we see them playing, a critical part of success is continuing to create unique assortments for our DTC and wholesale channels to drive exclusivity and relevance based on what we know from consumers what they want and what they need from Canada Goose. Before I turn it over to our regional presidents, I want to update you on some exciting plans to extend our reach in new ways through some new channels. The first is Travel Retail. This presents a meaningful opportunity for our business. We know that luxury consumers travel and they travel a lot. We also know that traveling consumers often shop our stores. We'll activate this channel through a wholesale model as most luxury players do in the space. And our plan is to offer an assortment of top performing styles from our best-selling categories, many of which are packable by design. In the long term, we see an opportunity to have as many as 20 locations worldwide, contributing significantly more than $100 million in the long term. We plan to open 3 to 5 locations within the next fiscal year, starting with the largest travel hubs. Our initial expansion will be focused in Asia and EMEA, followed soon after by North America. I look forward to sharing more as we accelerate our plans in this exciting new space. Turning now to another new opportunity, which is Recommerce. So last week, we launched Canada Goose generations in the United States, a new digital platform that puts our human nature purpose into action. There are so many reasons to be excited about Generations. First, we know the secondhand market for our product is robust and growing. Our research shows that online year-over-year searches in the U.S. for secondhand Canada Goose have grown by 50%. And as every product we make is made with the highest quality materials and uncompromised craftsmanship in addition to our lifetime warranty, our brand has a distinct advantage in the space. So we're excited to tap into it. Second, we know that every Canada Goose product tells a story. Generations offers a place for consumers to experience those stories and our products in exciting new ways and fall deeper in love with our brand. From hype hunters looking for a limited edition style to collectors who want a piece from our 65-year archives, to eco conscious consumers who want to minimize their environmental impact. Generations, delivers. We are meeting consumers where they're at, giving them even more reasons to reengage with us. In fact, we expect this new platform to drive significant engagement back to our DTC channels as sellers will be compensated in Canada Goose gift cards redeemable through our DTC network. Most importantly, though, this is an extension of the work we're already doing to support our purpose to keep the planet cold and the people on it warm. In fact, generations directly supports our sustainable impact strategy, helping us achieve our goal to divert 100% of annual warranty waste from landfill by 2025. Through our warranty program, Canada Goose Resource Centers program and refurbishing materials for donation, we've always found meaningful ways to be a part of the circular economy. Through Generations, we've extended that even further keeping our products in circulation and extending their lifetime while offering consumers an authorized reselling platform. Opening new channels and platforms, alongside optimizing our existing channels shows how we are investing strategically to meet the evolving luxury consumer needs. In summary, a few reminders on why building our DTC network is a key pillar of our 5-year strategy. Number one, it brings us closer to our consumers. It's where all of the good things that Penny talked about in accelerating our consumer growth will happen, attracting new and increasing repeat clients. Number two, it's where we bring performance luxury to life. Nobody can tell our stories and make people fall in love with our brand as well as we can. And number three, it drives profitability. With a contribution margin 3x more than wholesale, it's a key element of the long-term health of our business. I hope our conviction in this opportunity is clear. Globally, the Canada Goose brand has never been stronger, and our opportunity to continue to build our D2C network and deliver growth is significant, both in new and existing markets. With that, I'll turn it over to our regional presidents for them to share more about each of their markets, starting with Paul Cadman, President of APAC. Thank you.

[indiscernible] be live today, but I do hope it has been rewarding for you so far. I'm pleased to discuss our amazing business in the APAC region with all of its tremendous potential to contribute to our long-term targets. I will give you some background on myself. I am a more recent addition to the Canada Goose leadership team, having joined officially in 2021, following a consulting role in the region for several years. Before joining the company, I was an admirer of what Canada Goose had built and so quickly around the world. But specifically of the business in APAC and the opportunity ahead I have more than 3 decades of experience working with global luxury brands, including Ferragamo, Estee Lauder and Bulgari, leading successful teams and driving strategic growth in this incredibly important region. As a President of the APAC region, I oversee Greater China, Japan, South Korea, Australia and New Zealand. Since the launch of our D2C business in 2018, we have accomplished so much. More recently, we navigated a very challenging environment due to COVID, specifically in China, and we've done so by investing strategically. It's been quite a ride to say the least. Since 2020, as I'm sure you can imagine. Nonetheless, we know our brand is stronger than ever in the region, and we believe we are well positioned to generate attractive returns on our investments. I will start with China, which as of today represents most of our business in APAC and is a huge growth opportunity for the company. In August of last year, we strengthened our regional leadership team in Mainland China with the appointment of Larry Li. Larry joined as President of Mainland China. He is an experienced luxury leader, having management's experience from his time at the Richmond Group and LVMH. Larry oversees all aspects of our Mainland business reporting directly to me. As you know, many COVID restrictions were relaxed beginning December '22, which is also the most important month of our peak season. As stores reopened, store traffic increased, of course. Despite the challenges that COVID presented over the last few years, there is strong evidence of our brand strength in China. Multiple landlords chases for new leases, lease extensions and store expansions. Simply put, we drive traffic to them all. Take, for example, our first store in Mainland China, Taikoo Li Sanlitun store in Beijing. We opened the store in 2018, and it's been one of our most productive in the country since the start. So productive, we have been offered a new space, spread over 2 floors within the luxury mall, which will be much expanded footprint and a true luxury flagship location. We continue to drive incredible brand awareness and affinity through incredible events, social and then coverage. Our brand awareness over-indexes the global average and consideration of purchase rates have grown rapidly as we've expanded our direct presence. For those who already purchased, we see them coming back to the brand at increasing rates 36% of our customers in Q3 FY '23 year-to-date are repeat purchases, up from 27% at this point in FY '22. One of the most important focuses for my team is keeping the voice of the consumer top of mind and understanding their profile. Overall, I believe the luxury consumer in APAC is similar perhaps even more demanding than those in North America and Europe. Our global opportunities to attract more women and focus on Gen Z remain the same in APAC. Our consumer base in this region is slightly younger with a greater proportion of Millennials than Gen Z. We also skewed towards a slightly higher percentage of men shopping with us in APAC compared to our global average. As a result, our focus on driving a higher percentage of women customers presents a significant opportunity for our business. The good news is our recent fall winter collection with more styles and colors geared towards a feminine aesthetic as well as our second passive collection resonated well in the region, over-indexing the region share of the global business this fiscal year. And as you heard from Penny, we know Gen Z and women are increasingly environmentally and socially conscious. Our sustainable products, including Crofton and Cypress jackets as well as our kind fleece collection comparable tremendously in the region. Almost half of the fleece units we've sold in our D2C channel this year have been in the APAC region and mostly in women's styles. We have also recently welcomed Zi Zhan, a well-known actress fashion icon and environmental advocates as our newest Goose Person. She has a strong passion for outdoor adventure and her unique style, influence and dynamic personality has been a source of inspiration for Canada Goose customers. She's also an authentic brand ambassador, not only because of a sustainable way of life, but also the active role she serves for the brand, for her generation, and for women like her in China, working to ensure that the world is a better place. Their efficacy and values are directly in line with our brand ethos and that of our target consumers. In terms of other focused marketing, we have been leaner in fiscal '23, conscious of the limitations and restrictions to traffic from COVID, but our calendar for 2023 is quite exciting with some very large events in China including a major event in Shanghai and one in Beijing. Turning to our D2C network in Mainland China and Greater China. We currently operate 23 permanent stores. We focus on Tier 1 and Tier 2 cities with a AAA-rated malls managed by leading landlord groups. We enjoy key adjacencies and the consensus of preeminent luxury brands. We often get asked about domestic competition. We cannot compare our brand in most cases. The fact of the matter is local brands rarely have stores in the malls we are in. Our adjacencies include Louis Vuitton, Chanel, Hermes and Dior to name a few. In terms of our e-commerce strategy. We partnered with the leading digital players in the market, including Tmall, where we appear in the luxury pavilion. Just last month, we celebrated a mason reaching 1 million Wechat followers on that platform. As for wholesale in China, it is less relevant than in other regions. Chinese consumers tend to want to buy from branded locations or if they travel from world-renowned stores like Selfridges or Harris. This is why we built our business this way in China entering with a strong D2C position at the outset. This is different to how we've grown in other markets globally. In general, in China, the infrastructure hasn't developed such so there are many, if any, luxury department stores. Our wholesale business, including specialty and the limited department stores that we do operate in, in China is managed by our Hong Kong office. When it comes to our product, Apex is higher in terms of heavyweight down share than our global average. We are relatively new in the region as compared to North America and Europe, and we often see Chinese consumers specifically entering the brand by purchasing on most iconic pieces first. It is encouraging to see consumers buying into the brand with such an expensive first purchase. And as I said earlier, we also see growth in repeat purchases. This reflects the strong brand affinity Canada Goose has with the APAC market and tells us we have significant potential to sell these customers more items at lower price points as we expand our product category offerings. We are also seeing success with other product categories, non-heavy weight down sales as a percentage of total sales represented 38% in FY '23 year-to-date compared to 29% from the same period in FY '22. Now turning to Korea, Japan and the potential we see there. Japan and South Korea are two of the most highly influential luxury markets in all of Asia. In Japan, we signed a joint venture agreement in April '22 with SASB League. SASB is a leading retail partner in Japan and responsible for successfully growing many other Western brands in the market. As we previously shared, we grew our complement of stores in Japan last year opening in Osaka, and the second location in Tokyo's Ginza. We expect to open a further 15 D2C freestanding or shop-in-shop locations in the next 5 years. In South Korea, we signed a new distributor agreement with Lotte Group in April 2022. We currently operate 6 permanent shop-in-shops and a number of temporary locations. We expect to operate 12 dominant locations in several pop-up locations by FY '24 end. We are also online with a mirror platform to Canada Goose in the Korean language with an edited product assortment skewed to the Korean consumer. Beyond Asia, we see opportunity in growing our existing businesses in both Australia and New Zealand in the coming year. In closing, China is a dynamic marketplace, and while COVID headwinds have not yet disappeared, we are seeing the start of a retail recovery and are very optimistic about our tremendous potential here. In Japan, we are focused on growing brand presence and our D2C network in this highly influential market. In Korea, the pieces are in place for the refreshed brand presence in this trendsetting market to drive exponential growth. And lastly, we have a meaningful opportunity to grow Australia and New Zealand as we continue to amplify our focus on consumer needs across the region.

Hello, everyone. I hope you're enjoying your day so far. For those of you that I have not met yet, I'm Ana Mihaljevic, and it's my pleasure to share more about our North America market with you today. What you should know about me. I'm coming up on my eighth anniversary of being at Canada Goose. And today, I'm even more excited than my first day on all the opportunities ahead. So I was first drawn to the brand because of its incredible quality and its commitment to making that quality product in some of the best places on earth like here in Canada. I was living in New York on various retailer product waitlists, waiting to get that coveted item when I jumped at the opportunity to actually move back to Canada and to join the team, along with my husband and a brand-new newborn in tow for this incredible ride. My time in New York, I worked at places like Marc Jacobs and Ralph Lauren. Those, I believe, were foundational for me. Foundational in understanding what it means to be a brand. A brand with a clear vision and how to bring that vision to life. North America was the location of our first physical and digital stores, and since then, we've seen strong growth. Since 2017, at the IPO, revenue has grown $210 million or 68% and that channel mix has essentially flipped from 2/3 wholesale to 2/3 D2C. So let's take a moment to share a little bit more detail about each of the countries that make up our North America market. First, our home and native land, Canada. According to our internal brand and customer research, our brand is very strong here at home in Canada. We have high awareness, penetration and brand desirability. It is our most established market, and yet we continue to find new avenues in which to grow. The country's landscape it's evolving in a number of ways. More immigration, more international students are attending Canadian universities and colleges. Both of these groups afford us not only the opportunity to introduce new customers into the brand, but also to increase that awareness in their native countries. We've seen how Canada is a destination for international tourism, and we know that it will return with time. In two of our key markets, which are Vancouver and Montreal, there are new luxury malls that are going to be opening in the near future. So there's still meaningful opportunities for us to expand our footprint in the country. And finally, Canada offers us a unique testing ground. Sometimes that's for new product and technology. As Carrie mentioned earlier, we were the first to market with Omni, among others, my point. What works here, we scale to other markets. Next, the U.S. According to our research, brand awareness actually under-indexes the global average, but that varies regionally. So there's no question our brand awareness is growing year-on-year, but it actually lags that global average outside of the Northeast. So building awareness for us is key in that Midwest and West to build that base of business like we have here in Canada with approximately 10x the active audience. The U.S. is, of course, one of the largest luxury markets in the world. And so we see incredible growth opportunities, especially in our priority markets, as we call it Quest West. For example, we've seen strong e-com and wholesale demand in warmer regions, Texas, Virginia, even Florida. For us, this is an important indicator. How well are we doing building that awareness and how do we factor that in to where we consider opening new stores. We don't have any unmet plans of opening stores in those locations, but it does show evidence of brand strength and that our products are resonating and across the country and outside of the Northeast. And finally, the last country in our North American market, Mexico. There is no question Mexico is on our radar. We actually opened it as a new wholesale account back in fiscal '20. While it's not a material part of our regional market now, we see potential. We know Mexico has a growing and affluent consumer. We hope to capture that demand, both domestically as well as when they travel. Now let's get into what we know about our North American consumer. Versus the global average, the North American client is younger, more of them are women, and they are more likely to be a returning customer. Across the region, tourist spend made up 25% of our retail store revenue year-to-date in fiscal '23. While in fiscal '20, it accounted for 40% of revenue. In Canada, 36% of retail store revenue year-to-date was from tourism. That's well below the 53% it was in fiscal '20. And in the U.S. only 13%. 13% of retail revenue year-to-date was from tourism versus 21% back in fiscal '20. And of course, we're all very excited about the return of international tourism and what that would mean for us going forward. But in the meantime, we're focused on winning with our domestic clients with specific initiatives that we believe will drive brand affinity and improve our sales densities. Turning to wholesale. We have an important wholesale business in North America. It's one that helped establish the brand in early days. It still has a role to play in building awareness and reach. But we're going to continue to rationalize relationships, elevate and we're also evaluating our operating model with them. We most recently started operating an e-concession in select wholesale partners. We see how this model has become more popular both in the luxury space and is a way for us to partner with preferred retailers. In short, e-concessions leverage the retailers, digital platforms and marketing while retaining more influence in the marketplace for us over pricing, the product catalog and even fulfillment. As I'm sure you're aware, through e-concessions, we keep more of the sale than a traditional wholesale model while paying that commission. The retailer, of course, benefits from our inventory availability. We benefit from syncing that demand and supply, but also sharing the full lifestyle offering. Now, in our existing store network, we currently have 18 permanent stores, 9 are here in Canada and 9 are in the U.S. But we recently opened locations in Aspen, Denver and Las Vegas. And in the first quarter of fiscal '24, we plan to open our permanent location in Seattle, while also opening a new store in Los Angeles and a second in Las Vegas. As we said, we leverage consumer insights across channels to help us identify the best places to grow into. We're going to keep prioritizing Tier A locations with luxury adjacencies. And our long-term plan is to target approximately 4 total locations in North America, with approximately a dozen of those here in Canada and the balance set. Since we launched e-comm, we've seen over 70% of our customers using their digital devices to do research and throughout their purchase journey. So when it comes to facilitating that, our omnichannel business year-to-date in fiscal '23 represented 15% of store transactions that were filled through those capabilities. Now we understand not all of those are incremental but we do know there's a positive impact to both the experience and the conversion. And I can't forget about product. I love product. North America aligns with the global trends with heavyweight down sales as our leading category. However, we're seeing traction in non-heavyweight down categories and our increasing relevance in the nonpeak period. Our non heavyweight down sales represent 35% of our year-to-date revenue compared to 30% in the same period last year. By extending our seasonal relevance, we can both reengage existing clients but also creating new entries into the brand. And finally, if perhaps you thought we were saturated in the U.S. or Canada, I hope I've shown that there's still incredible opportunity that still exists. We're not done here in Canada and in the U.S., there's still so much white space ahead, especially as we Quest West. And all of this is against that backdrop of the expanding category offering and never to forget the return of the international tourism. Where I'm standing, we're just getting started. I want to thank you for your time, and I'm going to turn it back to Carrie to give you an update about EMEA.

I'm back. Thanks, Ana. As part of our final regional presentation, I want to share a leadership update. Pat Sherlock, who's led the growth of our EMEA business for the last 5 years, has decided to return home to Canada with his family at the end of this fiscal. Pat has played a pivotal role at Canada Goose in the more than 10 years that he's been with us. Starting off leading sales in our Canadian market, then overseeing the expansion of our wholesale business worldwide and more recently as President of EMEA. Pat is a true keeper of the Canada Goose flame and has done an incredible job leading our team in Switzerland, bringing new strategic retail partners on board and overseeing our D2C expansion and overall growth in EMEA. He'll be leaving us with an energized and experienced team, which is aggressively pursuing the opportunities we see ahead. And thanks to Pat's leadership, we are well positioned for our next phase of growth. Today, I'm very happy to announce that in March, we will welcome our new President of EMEA, [ Juliet Stryke Burger ]. Juliet comes to us with almost 30 years of global luxury experience, having led teams at Hermes, Prada and LVMH. She's held leadership roles across the U.S., the U.K. and Switzerland. And most recently, she served as the European Managing Director for Hermes. I'm excited for her to join the team in March, and I look forward to the incredible expertise Juliet will bring to our leadership. So let's dive into more about what we see for the EMEA market. We have a healthy, profitable and growing business in the EMEA region, which is the result of the strong foundation we've built one consumer at a time, one experience at a time. With a focus on what is meaningful to the European consumer, we've accelerated our D2C growth while maintaining a strong brand presence in our wholesale channel. Over the past 5 years, we've grown our top line revenue consistently building each year with a compound annual growth rate of 9.3%. Even through the most challenging fiscal year in our history, which was during the pandemic, we grew our overall business by 15%, and that was fueled by strong demand from local consumers. And no surprise, we believe there's much more to come. Our Made in Canada heritage, unparalleled commitment to quality and the reputation we built in warmth and protection are exactly what resonate with European luxury consumers. As you heard from Dani, these same attributes position us well to rival and thrive amongst the other luxury brands, which have a long history in the region. Success in any market starts with knowing who you're serving. Overall, our consumer in EMEA is younger and skews towards men. Over the past year, we've tracked just below 40% women in terms of revenue split. So we do have some work to do on meeting her needs in this market. As well, we have a stable base of repeat clients, but they're more likely to be new to our brand compared to the global average. So we're keenly focused on leading with women and reengaging clients to fuel our growth. Another important element of who's shopping with us in EMEA is our international tourists. Despite a return of the U.S. tourism to Europe this summer, we still see upside ahead. Tourists accounted for approximately 32% of retail store revenue in FY '23 year-to-date, and that's without the return of Chinese consumers. As they do resume international travel, we expect to see tourism rebound to pre-pandemic levels of 40% of store revenue and beyond. As Penny pointed out earlier, both women and Gen Z hold sustainability in very high regard, and we know EMEA is often at the forefront in this area. As evidence of this, our sustainable products have resonated extremely well in the region. Specifically, our Crofton and Cypress Puffers with share of sales over indexing what we see in other regions. Also non-fur styles represent more than half of total heavyweight down sales to date this fiscal, which exceeds the global average of 46% and is up from 32% last year. This confirms that our European customers are trendsetter in the space, adopting our non-fur offering earlier than the rest of the world. Finally, we're particularly excited at the potential of our apparel collection here. This fall/winter season, approximately 40% of global sales from our men's here on capsule came from this region. So now I'll look at where they're shopping. As a highly multi-brand market, the quality of our European wholesale partnerships is a good indicator of brand strength. Retailers like Selfridges, Harrods and Luprentol in Paris are some of the world's leading luxury retail partners and they work only with the best brands. From stunning shop-in-shops, exciting pop-up moments and creative collaborations, we strategically leverage those relationships to reach new consumers, grow awareness, and capture the attention and wallet of our key audiences. We also have strong pure-play digital partners, including Mytheresa, matches.com and NET-A-PORTER. We manage these through a European lens but they play a global role in positioning our brand and our product reach. Turning to our D2C network. We're relatively early in our DTC journey in EMEA especially when you compare us to local luxury brands with store networks that have been established over generations. In fact, 7 of our 8 permanent retail stores opened just before or during the pandemic. So they really even hadn't had a chance to -- or the full opportunity to flourish in a "normal" environment. Yet despite those disruptions, our stores are building strong momentum with comparable sales at plus 18% year-over-year. Starting in the U.K. This is where we first started our D2C journey, and it's home to 3 permanent stores. It also has the highest brand awareness, consideration and sales penetration in the region. It's second only to Canada in terms of unit sales penetration, which is again reflected by search statistics. In the U.K., there's no other brand that are searched more than ours when it comes to Parkas. And as I said earlier, it's that leadership position in protection and warmth that gives us the perfect foundation to grow consideration of new categories. And in the U.K., we've done just that. I mentioned earlier, our U.K. clients lead the charge in EMEA when it comes to adopting new categories, and they're shopping particularly through our expanding store network. Our London Regent Street location is our most productive in the region and often in our top 5 performing stores in the world. Penny spoke about the recent launch of our Warm Up London program and the great results we drove by connecting more closely with our clients in our store. As she noted, we saw a marked increase in base camp acquisitions as well as an increase in store productivity. Moving over to France. Our awareness here is strong, stable and in line with global averages. Our store on Rue St. Honore opened in December 2019, and it's having its best year on record. We also have meaningful representation at long-standing partners like Galleries Lafayette and Le Bon Marche, and we know there is more success to be had in other parts across France, in particular, as international tourism returns to this iconic luxury market. Moving to Germany and Italy. Even though our brand under-indexes global awareness average, as luxury hubs, we know there remains significant opportunity to grow here given that our DTC network is relatively new. As Europe's largest outerwear market with a lot of incumbent brands, Germany is a competitive market, but it's our high performance, our functional products and our lifetime warranty. That's what's moving the needle here. And while less developed, Germany is certainly a growing market. We've nearly doubled our business across all channels from FY '20 to FY '23. In fact, in Germany, Austria and Switzerland, we continue to build momentum across all channels with a 5-year compound annual growth rate of 12.5%. Now turning to Italy. This is a market we've had a presence in for many years, and it's a complex market to operate in. Currently, it's a strong wholesale market with standout partners like La Rinascente, which complements the gains we've seen in our online business since pre-pandemic. We see a major opportunity to accelerate our D2C reach as we look to bring the business back from a distribution model to an owned model. We know that consumers here, in particular, highly value Made in Canada luxury goods. So our opportunity to grow and succeed is strong. Long term, we see our EMEA network of stores growing to approximately 25 permanent doors, opening a mix of 3 to 6 new pop-up and permanent stores per year over the period. Now looking at our online business. I mentioned earlier that we upgraded our website experience last September and that allowed us to better connect with consumers across different regions. Genuine and localized connection is so much more than just currency and our recent upgrades are providing healthy engagement metrics. We've seen an increase in conversion of 15%, increased add to cart rate by nearly 10% and increased PT. As I mentioned earlier, we're in the process of rolling out omnichannel functionality in the U.K. in the coming weeks, followed by the balance of the region over time. In closing, EMEA is another ideal place for us to grow. Consumers here know and appreciate everything that performance luxury has to offer. So the opportunity is ours for the taking. We've built a solid foundation, and we're getting closer to our consumers through every product launch, every store opening and every online interaction. With expanded product categories that will increase our year-round relevance as well as new store opportunities to discover our brand and a continued focus on personalized, localized interactions, we're really well positioned to succeed. With that, I'm happy to turn the floor over to John Moran, who will provide an operations overview.

Good morning. We're excited to host you at our company headquarters, which is also home to one of our 8 owned domestic manufacturing facilities. And for those of you joining in person, we're looking forward to offering the experience of touring the factory with senior members of our manufacturing team. As Dani mentioned, we have been busy. And I appreciate this opportunity to share how we have structured our vertically-integrated operation to support future growth. From the processes around building our network of best-in-class manufacturing partners and suppliers around the world, to our continued commitment to the quality of product and service. We believe our agile supply chain is well suited to support growth. Prior to joining Canada Goose, I've been manufacturing and selling luxury apparel, primarily menswear in the North American market for over 20 years. At the time I joined, I was based on the Central Coast of California, and it was clear to me the opportunity for the brand in the U.S. alone was extraordinary. I joined the company as Head of Manufacturing, an area of the business that was perceived to be a governor of growth due to capacity restrictions. With the support of an incredible team, we have accomplished since what had not been done in Canada or the U.S. in decades, build the manufacturing network of its size to produce complex luxury product turning what was a governor of growth into a driver of growth. Today, my team is responsible for the end-to-end supply chain, which includes our own manufacturing facilities, domestic contract manufacturing partners, offshore manufacturers as well as raw material sourcing, quality assurance, regulatory compliance and supporting sustainability commitments throughout our global supply chain and logistics network. Beginning with domestic manufacturing. Our 8 facilities and 12 outside contractors represent a key competitive strength for Canada Goose. Over the past 6 years, our dramatic increase in volume produced can be directly linked to our efforts in new employee training. Given the state of Canadian apparel manufacturing, we recognized finding experienced individuals at the pace we require to support our growth was not an option. Our comprehensive training programs, which continue to evolve are provided at no cost to the employee and include benefits beyond sewing training such as classes for learning English or French. From training and the opportunity for growth within our existing facilities to the balanced approach with domestic partners, we have unmatched flexibility, which continues to fulfill our commitment to producing core down-filled product exclusively here in Canada. Offshore, we remain committed to producing the best luxury products in the best locations, which allows us to deliver high-quality craftsmanship, leveraging best-in-class operating partners around the world. Today, 14 partners, primarily based in Europe, produced finished goods from windwear and rainwear to knitwear and accessories to footwear. Prior to engaging any supplier, critical third-party audits to ensure environmental and social compliance are conducted along with our own audits. Following successfully passing our rigorous testing, alignment with our code of conduct is required. Over the past 2 years, as categories of European origin have expanded, we have built a team in the region to support our growth, managing production and controlling quality. With regards to raw materials, quality, performance and adherence to our sustainability objectives are critical. Our materials are sourced globally through 18 key suppliers and over 50 secondary suppliers. All materials are inspected for adherence to specifications at various points of the chain leveraging approved vendor of testing labs and internationally-recognized third parties. Internally, audits of materials and manufacturing processes are ongoing to ensure we are aligned with our commitments, including to, for example, the Responsible Down Standard. It's important to note, while we have regional Canada Goose resources, quality and compliance of raw materials and finished goods are governed by our core corporate team. Finally, I would like to touch on our logistics network, which is scaled appropriately over the past 6 years and involved several third parties and locations around the world. Given the unit volume produced in Canada, our primary warehouse is located here in the Greater Toronto area. This unique point of origin has proven extremely beneficial, particularly over the past several years as it allows us to operate against traditional shipping lanes. And while operating challenges such as port delays, strikes and weather are unfortunately common, our team has navigated all including the pandemic without compromising margin or service to our customers. Beyond our warehouse operations here in the Toronto area, additional distribution facilities exist in Western Canada, the U.S., the U.K., the Netherlands, Japan, Hong Kong, Taiwan and Mainland China. We have certainly evolved and adapted operations to accommodate the tremendous growth you have seen since our IPO. And while we have remained focused on supporting growth, we continue to maintain our commitment to Canadian manufacturing, the quality of product and service to our consumers, integral parts of our brand and our competitive advantage. Thank you very much for your time. I'll hand it back to Amy.

This script is almost as exciting as my last one. Now we'll break -- it's actually important. We'll break into 3 groups. And we placed a color dot on your name tag, which identifies your group. The red group will follow John, who was just up here. John is standing, and that's for the factory tour. The blue group will follow Woody for the Product Innovation Lab. And the yellow group, will stay in the room for lunch. Once you complete your tour, you'll move to the next one. So red will move from factory to product innovation and then the lunch. Blue from product innovation to lunch and then the factory. And yellow finally, from lunch to the factory tour and then product innovation. We plan to spend about 20 minutes at each location. No video or photography is permitted on these tours. Thank you. [Break]

All right. Take your seats. We're going to start the afternoon session here. I'll just give you guys a couple seconds here to get organized. Okay. So welcome to the third growth lever in our presentation today, creating new and expanding existing categories rapidly. I'm Woody Blackford, and I'm the Chief Product Officer. My career spans 4 decades in the industry, and I've been named inventor and a lot of IP that has advanced human comfort through product. My last role before joining Canada Goose in 2019 was at Columbia Sportswear in Portland, Oregon, where I was the VP of Global Design and Innovation. What drew me to Canada Goose was the opportunity to create performance at a luxury level. It's so elevated and rare to have an opportunity like this, and I really enjoy it. No brand is positioned to capture this opportunity like Canada Goose. I believe Canada Goose is the world's foremost performance luxury brand that enables people to thrive in the world outside. I'm very excited to show you how much progress we have made in recent years and all the amazing things to come. At Canada Goose, product development is focused on maximizing growth. And we have 4 key areas that we're focused on to drive this. category expansion, entering new and expanding existing categories. This is about creating net new revenue and expanding existing revenue by extending our product use cases. Second is seasonal relevance, making the brand important in every environment in all the geographies every day, all year long. Driving year-round relevance with product that protects in all climates, will be a huge unlock for Canada Goose. Third is leading with women. As you've heard, we have an incredible opportunity to expand our offering for women and [ great ] product is designed just for her. And then finally, sustainability. We believe that sustainable product innovation is a nonnegotiable and so does the next generation of consumers. Okay. So let's dive into category entry and expansion. I think it's important, if we are going to talk about category entry and expansion to talk about our history and how our business is evolving. If you go back to 2017, when we did our IPO, less than 15% of the business was non-parka. Today, approximately 36% of our business comes from new categories with our longest-standing and most successful new category being lightweight down outerwear. We have many other new categories such as apparel, accessories and footwear that are on very accelerated growth curves. And we expect by 2028, just over half of our revenue will be in the core parka category. And while significantly bigger, our overall business will be much more diverse. And that's great because it means we'll be getting more product in more categories to market even faster. Let's review the mechanics of our product growth by looking back to our original business case, which has really been key to our success. We call it the Snow Mantra effect. Let me explain what this is. For decades, Canada Goose has made among the most extreme cold weather product on the planet. It was through this focus that we gained our reputation. And today, we own warrants. And if you ask anyone who knows the Snow Mantra is at the pinnacle of warmth and protection. We took the Snow Mantra, which is ready to protect an environments below negative 30 degrees Celsius and adapted and evolved its design as we expanded within the category. We identified key elements of the design DNA from this pinnacle design, such as the snow skirt, the signature de rings, the [ grad ] straps and cuts, and then we flow those through to new products. By building credibility through our Pinnacle products then flowing through the signature design elements and performance drivers to the rest of the category. We have carefully expanded our assortments and at the same time, broadening our appeal to more and more consumers. Canada Goose creates icons and icons drive business, which is exactly what we've done with the Snow Mantra in our core parka category overall. And we continue to invest in our iconic parka business and have recently completed an update to each and every style. We set out to respond to the incredible feedback we received from our community from warranty claims to product reviews and everything in between. We meticulously edited and updated and elevated our entire assortment while being careful to maintain the original performance and design DNA that our customers know and love. Lightweight down. This was our first foray beyond the parka. And using the same Snow Mantra effect model, we have built an approximately $250 million business in just over a decade. We took the reputation we built in extreme warmth and approached the category with purpose. So much so that in 2011, we won Gear of the Year for a Pinnacle lightweight down style, the hybrid light. We were deliberate with our entry into the category, establishing a highly technical [ hero ] style and using the Snow Mantra effect to validate our expansion into a broader range within the category. And as we expanded within lightweight down, we created new icons along the way. The Crofton and Cypress are great examples of this, introduced only a little over 2 years ago, these fashion-forward luxury designs have become a huge success. We took the same approach we used in outerwear for expansion into apparel. In 2017, we launched our first knitwear collection, using the same strategy where we start with a Pinnacle technical offering then expand into a broader assortment. Today, our apparel collection has expanded beyond knitwear and includes both sweats and fleece, and they've been a huge success for our fans. Today, our apparel business is a meaningful one. It's expected to reach close to 6% of total revenue in fall/winter of '23. And importantly, we've reached that milestone faster than we did with lightweight down. We know how to grow our assortment and how to do it rapidly. Fast forward to today, in spring 2023, we are ramping up our expansion into apparel tops. We're starting with T-shirts, which are available in select retail locations now and in the not-too-distant future, you should expect to see even more from us. Polos are my personal fave. And we haven't forgotten about pants or base layers. Both of those are on our roadmap ahead. Now the last example of the Snow Mantra effect that I'll highlight is quite possibly the most literal, footwear. The first style we launched in fall/winter '21 was the Snow Mantra boot. I'm beyond proud of the incredible work our team put into the style which we believe to be one of the purest examples of performance on the planet. The Snow Mantra boot is the definition of iconic and authenticated our brand in the footwear category. Following our playbook, we expanded beyond our Pinnacle product with the Journey boot, a high-performance style designed with intention perfectly at home in the city or on the trail, the epitome of performance and luxury. And this past fall added another offering to the collection are puffer boots, versatile styles built to perform with luxury styling. And looking ahead, I'm particularly excited about our upcoming fall/winter '23 collection. Canada Goose will be getting into sneakers. This is a truly unlock for our seasonal relevance with a 12-month broad appeal. And these trail sneakers are not just -- well, they are the start as we accelerate our expansion in the category. Now we're still early on in our footwear journey with just over 1 year under our belts, but we're already making strong progress. Our path forward is clear and the opportunity is incredible. We're not done yet. I'm sure you're also wondering what's next for Canada Goose in terms of category expansion. Well, I can share for the first time today that we are working on 3 exciting new categories: eyewear, bags and luggage and home. First up is eyewear. It's a natural extension for Canada Goose in terms of protection and another notch on our expanding seasonal relevance. We believe that eyewear has the potential to become a very meaningful category. And we'll approach it with the same diligence we have employed across footwear, apparel and lightweight down. We plan to start first with a pinnacle product designed for extreme use and then follow on with more everyday styles that are infused with their performance DNA. Second is bags, duffels and luggage. Oh my, I really see that this is [ big ]. And again, we'll approach this category with a pinnacle product first, built for extreme use and then expand into more everyday styles. And lastly, home items. For us, this category would include items like blankets, home accessories and [ scents ]. We've already introduced several of these items across our stores by testing blankets and candles and have developed a set for our retail stores that our customers are absolutely in love with. This category is about capitalizing our reputation and warrant and extending it in a playful but luxurious way. We see tremendous opportunity ahead of us, especially in the [indiscernible] settings like [ Vale ], [ Aspen ], St. Moritz and [ Just Add ]. I look forward to sharing more with you as we continue our work across this exciting new area. Okay. That gives you a solid idea of how we are accelerating across new categories and expanding existing ones. Next, let's talk about seasonal relevance and how we can make our brand important all year around in all geographies. We have already made significant headway in bringing seasonal relevance to the brand from a lifestyle perspective. In spring '23, we will have fleece, sweats, including shorts, windwear tees, summer accessories and even some [ puffer ] mules. This expansion across seasons allows our brand to show up more often with more product than ever before. And that translates into more traffic in our stores, especially in the nonpeak seasons. Here, you can see how this comes to life from a women's perspective and also from a men's perspective. And then in this image on the screen, this is our new puffer mules launching in just a few months for spring '23. Our approach to seasonal relevance builds on our authority and warmth. Warmth in the phase of extreme cold is luxury. Canada Goose will keep you warm at any type of cold. We enable you to thrive in whatever conditions you may face. That freedom from the elements, that protection in any condition drives us as we create new icons as experts in conditions. Our vision has our brand expanding that credibility to keeping you dry in any type of wet condition. Ultimately, we believe we have permission from our consumer to keep people protected against all conditions. Now that's a huge opportunity. Starting with what we're known best for, extreme cold. Our innovation team is busy creating the next generation of extreme cold weather performance products. It's important we maintain our dominance in this area to retain credibility. We plan to revisit our pinnacle extreme weather expression. We will reset our Snow Mantra parka with a Snow Mantra 2.0. The biggest innovation we'll undertake in this process is perhaps one of the biggest in cold weather protection in decades, completely redesigned the hood of what some call the world's warmest jacket. Our intention is to design the most protective hood system the world has ever seen, setting a new standard in comfort and protection from extreme cold. I would really love to show this to you. But we're in the process of patenting this. So until then, you'll have to take my word for it. In the near future, for fall/winter '24, we plan to tackle the wet condition and enter the ocean category. I say ocean because our offering will represent the ultimate and keep people dry and comfortable in extreme wet. And it is also going to be called the Sea Mantra collection. The Sea Mantra will be our pinnacle product and head-to-toe protection in extreme wet. From there, we'll expand out into more everyday rainwear styles built on performance with luxury design. The collection will feature all of the iconic design DNA that Canada Goose is known for, and the Sea Mantra will be our hero from where we can then expand into a meaningful rainwear business with authenticity. Behind me are illustrations representing our broader rainwear collection coming to life. We will infuse luxury, versatility and style into everything we do in this area. It's important to note that we also plan to design styles within a collection for a varied level of activity, capturing more of the market across multiple use cases. As we look ahead, I'm excited that those of you here today were able to see behind this innovation door as we toured our state-of-the-art innovation lab. Through that door, our team is obsessed with what the world will look like in 10, 20, 30 years and how Canada Goose can play a role in making it a better place. Whether it's new fibers from never before seen materials, solving for comfort in an ever-changing global climate, our team is top-notch. By focusing on what's ahead, we lay the foundation for an enduring brand's future. Let's now move from seasonal relevance to another very important topic. We've talked a lot about already, leading with women. While we've made huge strides over the last 10 to 15 years when we sold only men's products, Canada Goose has not fully capitalized on the opportunity with women, and we firmly believe that we can take our already healthy women's business and grow it meaningfully. We're already well underway. Earlier today, Penny highlighted our efforts in this area. The campaign we shot with Annie Leibovitz featured our new collection designed with style, luxury and versatility at the forefront. That was our first women's-only collection. The collection represents our consumer-centric mindset and incorporated feedback for our female clients. They talked, we listened, and we really sweat every detail. We elevated our designs to a much more pure luxury status focusing on soft touch fabrics, elevated closures, buckles and finishes in a traditionally feminine silhouette. Reception has been extremely positive and women are seeing Canada Goose in an even more elevated luxurious light. Leveraging that success, here's a sneak peek at our upcoming fall/winter '23 collection for women's, both on the screen and on model. As you can see, we're designing with intention for every women and every women's taste. Our focus is on versatility, designed for the city and build to perform. You'll see our approach to branding as settled and our trends are much more elevated than in previous seasons. This is only the beginning, and we have a tremendous pipeline of women's designs upcoming across all of our categories from head-to-toe. Footwear is a great example of our head-to-toe focus in women's. We're working on a new style, which I cannot show you today, slated for an upcoming season, which will be beautiful, clean design but with incredible performance details, it will be waterproof, have amazing traction, incredible cushioning and be a breeze to slip on and off. This dynamic combination, turbocharges the products versatility, allowing her to wear the product in the city or on the trail. Our final pillar is sustainability. Sustainable innovation is a huge focus for my team and Canada Goose is pioneering across some incredible areas in this space. First, the standard Expedition Parka. This was our first design, which received our human nature designation and represents the new standard we set in sustainable innovation. So we called it the standard. The design uses less water and features responsibly [ sourced down ], organic cotton and recycled fibers. Ultimately reducing the amount of carbon used to manufacture the jacket by 30%. We consider the environmental impact in every single feature even the color. And you'll notice there is none. That's because it's undyed which reduced the water consumed in manufacturing by more than 60%. We're incredibly proud of the standard we set with this one. Penny mentioned our Kind Fleece as well earlier, and I'm so happy she did. Our Kind Fleece is another example of our purpose in action. Performance fleece is a huge business. And even the most responsible of brands are challenged to reduce its environmental impact. Recycled polyester is really the [ Zenith ] that most brands have reached in terms of making fleece more environmentally friendly. What is recycled polyester. In a word, it's plastic. It's recycled plastic, but it is still plastic. We knew we could do better, and we set out to create fleece that use the least amount of plastic that we could and we did. 90% of the fibers used in our Kind Fleece are derived from natural sources. We used recyclable and wood pulp plus some corn to supplement the plastic fiber and create a fabrication that's proprietary to Canada Goose in the process. We will continue to prioritize sustainable innovation and bring it to even more of our in-line styles. We've begun a reset of our top performing styles across our business, reimagine them through a sustainable lens. We've updated our fabrics, utilizing recycled fibers and organic cotton. Basically, we've taken all of the features of the standard expedition parka and apply them to a huge selection of our in-line styles. It's our hope that in only a few seasons, every single piece of outerwear available from Canada Goose will set the standard in sustainability. Finally, I couldn't leave without mentioning our incredible collaborations. Collaborations are an important part of our product ecosystem. They drive hype and a lot of conversation around the brand. They help us reach new [indiscernible], and we select partners that drive progress against our key goals: expanding seasonal relevance, leading with women and sustainability. We have a stellar track record in collabs. And as you can see, we have partnered with some of the world's top design and fashion talent over the years. I invite you to check out our most recent collabs here in the studio, touch them, feel them, try them on. They are some of the most exciting designs you'll see, and we're very proud of the roster we have built. In closing, let me remind you of our pillars that I highlighted today. Category expansion, seasonal relevance, leading with women and sustainability. By continuing to build out our core and by accelerating our expansion to new territories, we are moving faster than ever to expand our performance luxury lifestyle assortment. As I mentioned, it took us 11 years to build our lightweight down category into an approximately $250 million business. For apparel, we've scaled in just 5 years to approximately 6% of total revenue and footwear is well underway. Our approach works. It's tried and tested. So much so that we are able to share our intent to expand into 3 more seasonally relevant categories with broad appeal today. Now that's what I call exciting. In closing, I invite you all to take a tour of the showroom touch, try and test out our latest styles. But before I do, sit back and enjoy another round of our [ model walk ]. Okay. Thank you. Next up is Jonathan Sinclair.

Thanks, [ Woody ]. Good afternoon, everyone. My name is Jonathan Sinclair, I'm the EVP and CFO. Even before I walk through the door at Canada Goose, I knew how tremendous the potential was for this brand. It was one of the reasons I joined, and now I know it more than ever. Today allows me and us to put parameters around that. More than that, though, I'm passionate about this business. As a seasoned luxury executive, whether I was walking my dog in minus 30 degrees here in Toronto or upper Churchill watching the polar bears in our London store, experiencing Canadian warmths, first hand with our customers or watching our lineups across our retail network in all 3 regions, I've always appreciated I'll take on performance luxury and on how that allows us to protect consumers as well as to provide an authentic luxury experience, which consumers price and see count. This year marks my 5-year anniversary with Canada Goose. And today, I've got the pleasure of speaking with you to share our historical growth and the drivers of our 5-year plan through fiscal '28. Now before we delve into our plan, I'd like to share our historical performance as it demonstrates our established track record for growing revenue and profitability. We'll start with the IPO plans. You heard from Dani earlier, as to how we outperformed on all of the key metrics in our initial 3-year targets through fiscal '20. Revenue was way ahead of the plan on the compound growth rate of more than 15% above what we expected. Adjusted EBITDA was almost double what we expected to deliver and consequently, so was adjusted net income. Importantly, using today's key metric, adjusted EBIT margin. On that measure, we delivered 24.9% in fiscal '19. One level below that, let's talk about the assumptions that we made at the time, and the drivers that allowed us to achieve much more than was originally planned. Firstly, we opened stores faster than we expected. We ended fiscal '20 with 20 stores instead of 17. We chose to privilege stores over e-commerce markets in those days, which means e-commerce markets grew to 13 instead of 18. What was important, however, was that in a period where international travel happened freely, remember those days. Our stores performed strongly, indeed, very strongly. The result was a shift to DTC, which represented almost 2/3 of revenue compared to an estimate of 44% when we went public. And that mix shift drove profitable growth. In fact, almost double our expected adjusted EBITDA. EBITDA, which was the metric at the time and margin expansion of some 540 basis points more than we planned. Pricing and unit volume growth fueled all of these metrics. Now as you're aware, our results following fiscal '20 have been impacted by the pandemic. Today, while we continue to face headwinds due to less tourism and significant disruptions in China, which has only recently lifted type restrictions. Our revenues are expected to approach $1.2 billion in fiscal '23, surpassing the revenues generated in fiscal '20. Adjusted EBIT is moving closer to pre-pandemic levels. During this time, we've consistently invested in talent, expanded our retail network and invested in technology. That leaves us in the strongest position post-pandemic, notwithstanding the incremental margin compression that's resulted. Now critical to any financial plan is to have a solid foundation. I'm proud to share that Canada Goose has this strong foundation. You have heard from our business leaders today who spoke ahead of me on how our brand resonates globally, driven by our brand heritage, our high-quality construction and our ability to curate products that consumers love. We possess a strong infrastructure, and we have invested ahead of growth while reporting sustained increases in revenue and profit along the way. These are the very same levers that were in place back in fiscal '17, and they continue to be our foundation. And if we look at the 5 years ending fiscal '23, which we've updated recently, we will have achieved a revenue compound growth rate of 20% and an adjusted EBIT compound growth rate of 15%. I should say that we're using the midpoint of the fiscal '23 outlook ranges and assumptions partly for convenience and partly because we're partway through the quarter 4 in any event. As we've grown revenue, we have followed a traditional luxury trajectory. And that's reflected in our increased penetration across geographies. As such, our Canadian [ roots ] quickly evolved to give us a diversified global revenue base. At the time of our IPO in fiscal '17, while the majority of our revenue was generated in North America, EMEA represented a little over 21% and Asia Pacific was about 8%. And this year, fiscal '23, we expect EMEA and Asia Pacific combined to be more than half of our total revenues. It may be hard to believe, but we only entered the market in Greater China in fiscal '19. We opened one store in Hong Kong in [ IFC ] and one store in Beijing in [ Sanlitun ]. In a similar way, we opened our first London store in fiscal '18 and Paris and Milan late in calendar '19. So in many ways, we've not yet operated in a truly open COVID-free environment in either Asia or Europe. This expansion though, was achieved through the disciplined execution of our strategy, and that's been focused on DTC expansion. By following this path, we capture more profit compared to the wholesale model. Importantly though, we create closer connections with our consumers, and we showcased the full expression of our brand in the setting that we manage and where we can curate the full customer offer and experience. Today, DTC represents a high 60s as a proportion of total revenue having grown at a compound growth rate of 38% since the time of our IPO. Wholesale will remain an important part of our business providing us with the ability to increase brand awareness with some of the most sought-after luxury retailers around the world. Our wholesale compound growth rate of 4% is a case of quality over quantity. We've made a very conscious strategic decision as we reduced our [ door ] count, and we were highly selective of the highest quality luxury retailers to accommodate a growing DTC network in our more mature markets as we open new directly operated stores. So now let's turn to the next 5 years. and our plans to deliver $3 billion in revenue and 30% as an adjusted EBIT margin. We view this scale as achievable over the period, and the margin is appropriate for a luxury business. Over the next 5 years, we expect revenue to grow at a compound growth rate of 20%. And for adjusted EBIT to increase at a compound growth rate of 39% from the midpoint of our fiscal '23 outlook. Our revenue growth rate is consistent with our historic performance with adjusted EBIT margin expansion, benefiting from our efforts to invest ahead of growth and our investing scale, which allows us to leverage direct and corporate overhead expenses. Over the plan period, we expect marketing expense to increase at a slightly higher pace than revenue. Now let's take a closer look at revenue. There are 3 pillars that deliver our revenue objective, as you've heard from the team today. I'm going to remind you of some of these themes and put them in a financial context. The first is focused on accelerating our consumer-focused growth. The second is to build out our DTC network. And the third is to create new and expand existing product categories rapidly. Delving into our revenue growth in more detail. As this waterfall illustrates, we have identified several drivers. First among them are the new commercial initiatives and the organic growth levers. Firstly, the new commercial initiatives. These include expanding our store network in existing markets converting distributor markets to owned DTC markets, deepening our presence in Japan through the joint venture and the opening of new markets and new retail concepts like Generations and Travel Retail. In terms of organic growth, further enhancing store productivity is a key unlock. This will happen as we drive consumer traffic and increase revenue with the year-round product assortments you've heard about today. We plan to continue to take pricing and provide an increasingly elevated retail experience as well as enhancing our CRM and client telling activities that bring us new consumers and increase loyalty amongst existing consumers. Next, we have e-commerce and digital growth, and that will be driven by enhancements that increase conversion, the benefit of pricing and of course, our expanded product offering. And finally, wholesale and other channels are expected to continue to grow on pricing strength as well as a deeper assortment with our partners and optimizing the door mix offset by the impact of taking over key markets. All told, this is a classic luxury distribution strategy. Across geographies, our strategy remains unchanged, which simply put is to move closer to the luxury trajectory of 1/3, 1/3, 1/3 between Asia Pacific, EMEA and North America. As such, we'll continue on this path with growth moving us closer to an equitable split. That said, we expect to skew a bit more towards North America and Asia Pacific, given the current size and maturity of our DTC networks there. We anticipate delivering strong revenue growth across all 3 of our regions from where we are today. As the slides illustrate, our opportunity is compelling across geographies. In Asia Pacific, we expect to drive further growth by capitalizing and maximizing our brand strength across the region. As such, we will continue to increase the penetration of our product and DTC locations in existing markets as well as entering new ones. As you've heard, we believe Japan and Korea have the potential to reach the size of Mainland China. Hong Kong, Macau, Taiwan and Australia are also underrepresented today with the luxury consumer, and that makes these markets highly attractive for our brand. In EMEA, we plan to grow our store base in key cities to accelerate our women's business and to expand our e-commerce for omnichannel presence. And in North America, we see significant opportunity to grow revenue profitably in key cities as we quest West in the U.S. while expanding our omnichannel presence across North America and strategically partnering with luxury retailers to increase our wholesale presence. Lastly, we will also be optimizing our Canadian distribution. Overall, in fiscal '28, we expect Asia Pacific to see around 4x the revenue we've recorded in fiscal '23, EMEA to generate 3x the revenue and North America to double its revenue. Even with this growth, we believe our revenue share will be in the low single digits of the luxury market across the products that we sell today. And that's before we consider the impact of additional categories and geographies. DTC will continue to be the focal point for our geographic and category expansion. As I mentioned, our mission since our IPO has been to grow our DTC channel by expanding our store base and our digital and omnichannel presence and capabilities. This growth comes with very healthy margins while showcasing the full expression of our brand in an environment that we manage and where we can curate the full expression of our brand with our consumer in person. In fiscal '28, we expect DTC revenue to reach about $2.4 billion or 80% of our total revenue, up from the high 60s expected in fiscal '23. This growth will come from the continued expansion of our retail store footprint, the expansion of our categories across seasons, the growth of our joint venture operations in Japan and as we build our omni-channel capabilities around the world while enhancing our consumer-first data orientation. Including buybacks of partner stores, we expect to add anywhere between 80 and 100 locations from fiscal '23 to fiscal '28. It's important to note that this growth in stores assumes that we develop our Japanese JV and that we take over certain markets that will have between them 20 to 30 stores built at that time. Wholesale will continue to increase as we strategically optimize distribution while partnering with the best luxury retailers around the world in addition to introducing Travel Retail and offset by the buyback of some distributors in key markets. We have a highly profitable and highly compelling store economic model, which is shown here, which Carrie mentioned earlier. We start with an efficient store size with strong sales productivity, low capital investment and together with undiluted gross margins, that delivers high operating margins, put those together and you get a low target payback period. That is the classic luxury store economic model. And as we've shown, our model works across geographies. So as we grow, we look to replicate this success. So when we greenlighting store openings, we target $4,000 in sales per selling square foot and store footprints occupying 3,000 net selling square feet on average. Capital expenditure for the build should average around $1,000 per square foot. And that gives us an adjusted operating margin -- adjusted EBIT margin target, that's greater than 40% and a payback that happens inside a year. While e-commerce is different, it can achieve a higher margin in stores on a per unit basis, given it carries a lower fixed cost base. The third pillar of our revenue growth is to accelerate category expansion in our mission to be a year-round brand. The circle chart on the left shows the revenue across our offerings of heavyweight down, lightweight down, apparel, accessories and other categories from fiscal '23, which you can see at the center of the circle to fiscal '28 which you see on the outside and the circle on the right illustrates the percentage of revenue associated with these categories, again, from fiscal '23 at the center to fiscal '28 on the outside. As the circles show heavyweight down will continue to represent the largest part of our offering at around 50% in fiscal '28 with lightweight down more than tripling to around 25% of revenue in fiscal '28. And apparel, accessories and other categories quadrupling in size from fiscal '23 to represent the balance of revenue in fiscal '28. Category expansion and product depth beyond parkers also spread our revenue across the year, and that reduces the size of Q3 as a proportion of the total year's revenue. This has a number of operational benefits, but it's also fundamental to driving store productivity and what are today our non-peak periods. Today, the first half of the year is around 30% of the business, the third quarter is 50%, and the fourth quarter is 20%. In DTC, that's much more pronounced. 15% in the first half of the year, 60% in the third quarter and 25% in the fourth. In fiscal '28, the consolidated shape looks more like 35% in the first half, 45% in the third quarter, and 20% in the fourth with DTC experiencing most of that shift. Now let's turn to the delivery of our adjusted EBIT margin target. At a high level, our adjusted EBIT margin expectation is delivered through the disciplined execution of our strategy. We actively balance headwinds and tailwinds to manage gross margin. SG&A investment will focus on optimizing our existing overheads, the expansion of our new categories, building out new channels and other business initiatives. So let's turn to gross margin and go into a little bit more detail. As you know, we've got a robust and proven algorithm. We balance tailwinds, which includes pricing power, scale and in-sourcing with headwinds driven by input price inflation and our investment in new and existing categories. As a result, we have held and anticipate holding channel margins stable. On a consolidated basis, our low 70s gross margin target is grounded in a track record of proven performance across our DTC and wholesale channels. Over our plan period, we expect DTC gross margin to be in the mid-70s and wholesale gross margins to be in the mid- to high 40s. Overall, gross margin is expected to benefit from the continued positive impact of channel mix as well as scaled owned manufacturing and growth in higher-margin categories and pricing. And that will more than -- that will offset the negative impact from scaling new product categories, geographies, inflation in the input cost, be it labor or materials amongst the other areas. Our DTC expansion, store productivity and operating leverage all contribute to our expected operating margin expansion. DTC margin expansion reflects the return of store productivity to historical levels post COVID. SG&A is also a significant driver of operating margin expansion as we leverage direct and indirect costs with marketing expense and capital investment expected to slightly delever over the period of the plan in support of new categories and our DTC expansion. Our ability to leverage SG&A as we grow reflects the growing scale of our business and the proactive stance that we've taken regarding investment, which has been made in advance of growth. We believe that we have the people, the processes and the infrastructure in place to support expansion and that they're capable of further improvement through efficiency and leveraging technology. Now this is one of my favorite slides as it illustrates some of the levers that we have within our control as a luxury retail brand, pricing, units of transaction, conversion, new store openings. Each of these levers working independently will deliver top line growth and margin accretion. Taken together, they are key to the contribution of DTC in fulfilling our profit objectives. In addition to our revenue-generating activities, we have also started a program that takes inefficiency out of our cost base and identifies opportunities to increase return on investment, drive greater efficiency and effectiveness out of our initiatives while ensuring that we've got the right talent to achieve our goals. In doing so, we have engaged very well-known global external experts with best-of-breed track record to deliver our business acceleration program with operating leverage a critical deliverable. We expect to realize cost savings and avoided scaling costs, which together amount to $150 million in operating costs by reducing operating -- by reducing direct cost of sales, improving sourcing efficiencies, increasing our decision-making speed through enhanced technology, improving our organization and operating practices, and optimizing our marketing spend for the efficiency of the spend. This is fundamental to our progression to a 30% adjusted EBIT margin. And as the benefits of this program are realized, we see that the optimal outcome at SG&A is at 40% of revenue by fiscal '28. We are intently focused on maintaining a strong and durable balance sheet, and improving working capital and inventory turnover are 2 priorities. As you can see from the chart, we expect net working capital as a percentage of revenue to decline significantly from around 25% at the end of this fiscal as we increase inventory turnover over the period to fiscal '28. Our priorities for capital are focused on 3 areas. Firstly, we will reinvest in support of our growth plans as this delivers our long-term revenue and profit goals. Capital expenditure is expected to be somewhat less than the historical proportion of revenue from fiscal '23 through fiscal '28. The majority of our capital expenditure will focus on our DTC expansion, including inevitable requirements to refit some of our existing stores. In fiscal '23, the move to our corporate headquarters in Toronto, technology investments as well as sustainability investments round out our capital expenditure. Secondly, given that we expect to generate more cash above the need to support our expansion, we will continue to evaluate the opportunistic repurchase of our common shares. And lastly, when it comes to debt, we will maintain an appropriate and efficient level of leverage in the business. And as I've said, we are very comfortable with current leverage levels. In summary, we've set our sights high. We believe the same back in 2017. We did what we said we would. We have not strayed from who we are. If anything, we've dug in with more conviction. We know we're on the right path to deliver the most value creation. A true luxury brand with a considerable increase in scale to $3 billion in revenue and achieving the right level of profitability and a 30% adjusted EBIT margin. And with that, I will end our formal remarks and we will begin Q&A. Thank you.

I'm Alex Thomson, Vice President, Public Affairs, Communications for Canada Goose. I'll be moderating the Q&A this afternoon. Thanks so much for everybody, for your attention and joining us for an exciting day. Throughout the day, we've been receiving questions online. So we're going to incorporate those into the Q&A. And then we invite anybody here in the audience as well. Allison and [ Berlin ] will be on either side of the aisles, they have microphones. So if you would like to ask a question, just flag them down. [Operator Instructions] While Allison and [ Berlin ] are getting organized here, maybe we'll start with some of the online questions. Okay. The first question, Jonathan, I might ask you to start this one off. What key progress towards your target should we expect to see in FY '24?

Okay. Thanks. So let's start with the fact that we will see progress towards our targets in fiscal '24. You've already heard some of the DTC plans being discussed today. And we're working with a variety of -- an interesting variety of economic scenarios at the moment as we look around the world. We look at Asia, it's all about post COVID recovery. In Europe and EMEA, it's more to do with the environment around the fuel price shock and the recovery from that and its impact on inflation even if most of those markets are still expected to grow this year. And North America has been going through something of a macro uncertainty in recent weeks and months, which may persist for a little while, but our strategy navigates all of these scenarios. So we still expect to return to significant growth in the coming year. And equally to steps forward on profitability. It's not just about growth, though. And as I've just said, we've also got the initiatives on costs that we will now have underway that enable us to move forward towards the EBIT margin goal as well. When it comes to more detailed guidance, I think we'll return to that when it comes to the publication of our Q4 results in May.

If I could just add on to that just, briefly all very well said. And I think that I just want to remind everybody, and I think it's important to remember, we have a long-term view. This we're talking today about a 5-year plan. And so as per Jonathan's comments for sure, next year is going to play a meaningful role in that. Between here and fiscal 2028, there's no way it's going to be a straight line. I mean we all know that. It's impossible. So for that -- for the economy and for the markets to work like that. So we've taken that into account as well. We know there'll be differentiations in years and things that come in at us that we're not expecting, and we accounted for that. And we're confident in our ability to execute our roles.

Jonathan, it's Michael Binetti with Credit Suisse. Maybe 2 numbers if you could help us unpack the -- I think the SG&A will grow at a low teens, CAGR relative to the revenues growing at about 20%. Maybe walk us through some of the buckets, but maybe help us think about some of the guardrails in the line items that you report, the unallocated D2C wholesale to help us think through that a little bit. I think unallocated in particular has been a bit volatile, and there's a lot in that line. And then on a related basis, I think your math builds to per store productivity about $12 million per day, obviously, a great number. Can you help us think about -- break that down between maybe some of the averages in stores that are fully opened versus unimpacted by COVID versus those that are at an unnatural productivity level today because of COVID, I'm thinking about China because it's such a big piece of the mix, it's very hard for us to think about what those stores should be at as we kind of build out the D2C part of the model.

Yes. Okay. Thanks. So on the cost front, let's start there. And clearly, the compound growth rate and costs will be a lot lower than the compound growth rate in revenue, and that's a mathematical piece. But I think the most important thing, as you say, is to think about how the different components of it behave. When it comes -- and I always talk about this in the context of channel cost, which is direct costs. And then within the unallocated component, we have marketing on the one hand and sort of the corporate overhead on the other. So the direct cost will -- I would expect to grow somewhat less faster than the revenue in those channels as we continue to get some benefit. And I think particularly when I've been talking about the DTC recovery, that's where you would expect to see that wash up. So if you're looking at the DTC revenue growth and cost growth you'd expect in the channel revenue growth to exceed the cost growth. I think when it comes to marketing, I've said already that we expect that growth rate to be slightly above the rate of growth in revenue, and that's as we reinvest in the new categories and also in the real estate. Lastly, the overheads, for sure, I expect to see that grow the least quickly. And that's very important because that's obviously where you get the -- once you've made the structural investments, that's where you look for operating leverage. So it's the most obvious place to go.

Jay Sole from UBS. My question is similar to the last question. But touching on the growth drivers from here, I think people in the audience, everybody wants to know sort of how do you build up to where you think the business would be today without all the COVID issues that have come up over the last 3 years. And you showed us the growth between the IPO and fiscal '20, but sort of take us to a bridge for where you think '23 would have been without all this COVID because I think you mentioned $160 million number on the last call. You talked about -- you gave us some pieces on the slides talking about store productivity. Talk about where you really see this business today on a fundamental level, sort of without COVID, and so we can sort of build up from there.

I'll start that off and Jonathan can chime in afterwards. I think it's actually very difficult to say where we would be today if there was no COVID because there was COVID. So it's hard to speculate on what would have happened, and we were growing at a rate of mid-20s top line revenue, and that was in faster on EBITDA and EPS. And I mean we had expected at the time that, that would continue. So I think it's to say that that's what we would have expected. That's not what happened. And so when we built our 5-year plan and that we're presenting today, we've built it based on reality and based on where we are and where we find ourselves, and we're building into that what we expect to be. We seem to be emerging from the pandemic and the world opening up again. And that's very exciting for us because international tourism, it was a huge thing that was impacted for us. And before the pandemic, we had 25% plus operating margin -- EBIT margins, right? So for me, once that returns back to normal, we're already at 25% and then we have a whole bunch of other opportunities to -- and opportunities and initiatives underway to get to 30%. So if that returning to normal, I think that it's part of our assumption, the world does do that. And that's sort of the -- but I do think it's impossible to anticipate where we would have been [indiscernible].

And the famous number that one of these days I should regret quoting is that we downgraded our expectations in mainland China twice this year. In the light of the business, it didn't materialize because the disruptions persisted longer than we expected. And that's how we got there. It wasn't to say that's a normal level of business. If I may, I'd also like to return to the store question, which I failed to answer, and I do apologize for that. The store productivity in our fleet today is at and north of the numbers that we green light for the stores that we're opening in the future. And that's not a huge surprise because obviously, we have had some very strong performance in there out of the gate. But even then, those stats about our fleet today include the headwinds that we're accommodating at the moment. So we actually have a very, very strong underlying earnings model in the stores here. And that's part of how you really start to realize the margin expansion as those stores come back to full productivity.

Can I just add one thing to Jay, your question about in terms of how to predict where we are. The one thing I will say we expected was exactly what we are seeing in terms of brand strength. So I think, for us, in terms of we did not cut costs in terms of we know it's important to keep building a brand, I know you can talk much more about this. But those were our expectations. And I think that's one point of like immense satisfaction and gratification that, that held strong throughout whether our financials didn't hit the target, our brand strengths have.

Yes. Actually, that's a really good point, Carrie, because compared to our competitors over the, say, 3-year period, we saw a distinct dip off in brand strength for those competitors compared to ours that remained stable to increase across all our key markets. So that was a great and robust road for us to come out of the COVID era. And we see that return in China, especially now the doors are opened as well. The brand is extremely healthy.

Oliver Chen, Cowen and Company. Category expansion and seasonal relevance, what will happen to SKU count and inventory management? It sounded like there's an opportunity to also reduce inventories on this path, there's also margin headwinds. So which categories might have the worst margin headwinds as you expand? Second, CRM, CDP, that's a very big deal. What should be the speed of impact here and how may you link this to innovation or merchandising? Last, just a modeling question on marketing as a percentage of sales. Where are you seeing that go?

Don't forget all that. Yes, I'll start off high-level categories mentioned, and I think we'll talk about margins later, but overall, once any category is mature, I think it is our expectation that our -- we maintain a fixed margin and that any new category achieves the same margins that we're already achieving in existing categories. Obviously, that's -- that changes in the early days of any category. I think that I'm excited about category expansion over the next 5 years because there are some really compelling categories that we will get into -- we are getting into and that we can grow faster than we have in the past. And we have a proven playbook and from light we're down to knitwear to footwear and we've learned how to -- over the last 5 years, we've learned how to open new categories, get into them, find adoption from our customers and grow them. And we think we can do that much faster. And so we'll -- that's built into our plan is that we're going to do that.

I would add to that, that we really focus on a path to margin with every new category that we enter. And it's a combination of gaining efficiency as we go along. But also the pricing power of the brand continues to elevate. And I think it gives us an opportunity to have really good margins in some of these new categories.

And maybe I can respond to your question about the importance and the opportunity around a robust CRM program. So the first step that we've taken is to actually invest in a very good CDP, so -- customer data platform so that we're managing our data globally in the best way. As I said, the next step is us having one view of the consumer, which means that we have a much more internet profile of what they would like from us and potentially what they'll buy in the future. So we already have a very healthy database. What we're going to be able to do now is segment that database in terms of loyalty to the brand, profitability and really create personalized one-to-one clienteling, whether that be in a store or whether that be online in order to optimize that relationship and that loyalty with us. And then, of course, it's not just about the retention, it's about the acquisition of qualified customers to your brand. So we will be giving ourselves very stringent KPIs to ensure that we're doing both at the same time. So to your question, we see a huge opportunity in this new investment in the one-to-one clienteling.

If I can just complete the circuit, I think there are 3 components, I just wanted to comment. Firstly, our margin algorithm allows us to make these investments in new product categories, new product development in existing categories without diluting the corporate margin. And that's our mission. That's management's job. And that's what we have been on with and continue to do. And we actually showed you the lightweight down consolidated margin. Today, it's very, very close to the corporate margin. So you can see that after we built it up, we actually do get them in the way that Dani has described. When it comes to inventory size, SKU size and so on, we are very, very disciplined. This isn't a story of SKU proliferation. This is very considered and very targeted in the way that we approach this. And as a result, when it comes to inventory management, it allows us to be very careful and very targeted about where it's going. We've always said, and we will continue to do this, that it's okay to sell-through really quickly and then to come back later. We'd rather do that than take huge bets and hope, and then create ourselves problems. So I think there's that underlying discipline of execution in the way that the product categories are managed, allows us to expand this. And we've got enough experience under our belt now to go faster.

I want to think further to that. Can we keep putting on to see here, but not -- it's very important to remember that one of the most powerful parts of our business model is that we build iconic's and we build styles that last for multiple seasons and for generation. So that lots of our inventory, even a large, large component of it does not go at us out, even if we have -- even if we carry over to next year, it's still relevant for the next season. That's really important.

I'll stand, so you can see me back here. Jonathan Komp from Baird. Maybe 2 questions. First, a bit of a more philosophical question, just around the 20% top line growth target. I want to just ask maybe why that's the right target? A lot of what you shared today is an acceleration of what you have been doing, and the operating margins been down quite a bit over the past few years. So did you give any thought to pausing or slowing growth just to let margin to catch-up? I want to get your thoughts there. And then just secondarily on inventory, did you share a near-term target that you'd expect for inventory turns? And maybe how quickly you'd hope to get there?