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Canada Goose Stays Warm Amid Global Trade Chill

by Demos

In 2018, a shopper celebrating her 25th birthday visited the Canada Goose store in Boston with her mother, drawn by years of admiration for the brand’s famously warm jackets. The store’s immersive “cold room,” a subzero chamber simulating harsh winter conditions, offered a unique experience—though perhaps lacking the real snowfall it mimicked. After repeated visits to the chamber and some intense deliberation, she chose a bright red coat with a fur-lined hood. Seven years later, that same coat remains a winter staple, enduring fierce snowstorms, slippery sidewalks, and even snowball fights.

That durability extends beyond the product itself—Canada Goose’s business model appears equally robust. While many apparel brands are scrambling to exit China due to rising tariffs and geopolitical instability, Canada Goose remains relatively unaffected. The company’s long-standing decision to manufacture the majority of its products in Canada has proven to be not only a matter of brand identity but also a strategic advantage in today’s volatile trade environment.

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Unlike brands that outsource manufacturing in a patchwork of global partnerships, Canada Goose has embraced vertical integration. Over 90% of its down-filled outerwear is made in-house in Canada, a move that is both uncommon in the fashion industry and instrumental in shielding the brand from trade disruptions. As Beth Clymer, President and COO, explained during the company’s Q4 2025 earnings call, this in-house approach is more valuable now than ever. While others redraw supply chain maps to reduce dependency on China, Canada Goose already operates with independence.

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Thanks to its localized production model, the brand enjoys substantial protection under the United States-Mexico-Canada Agreement, sparing it from many of the tariffs affecting competitors. Though about 20% of its goods are still manufactured in Europe, where they’ve felt some economic sting, the bulk of their production remains strategically secure, allowing for nimble adjustments when necessary.

In a retail environment plagued by uncertainty, Canada Goose stands out not just for its cold-weather gear, but for the clarity and control it maintains over its operations. Rather than chase cheap labor or short-term trends, the company continues to invest in quality, ownership, and long-term resilience. The results are tangible: inventory was reduced by 14% over the past fiscal year, and gross margins climbed to 71.3% in the fourth quarter.

Unlike some brands that waver under pressure, Canada Goose did not release a full-year forecast—not out of uncertainty, but due to a measured understanding of the unpredictable consumer market. This cautious confidence suggests a company not rattled by external noise but focused on internal discipline.

While global competitors struggle to adapt and reconfigure, Canada Goose continues with a steady hand. Its operational consistency mirrors the enduring quality of its products. Just as a well-made red parka holds up through blizzards and years of wear, the brand’s business strategy remains steadfast through economic storms. In an industry where change often feels like survival, Canada Goose’s refusal to flinch may be the cold-weather resilience the market didn’t know it needed.

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