Bain Considers Selling Stake in Canada Goose Holdings Inc.

Bain Capital, a private equity firm, is considering selling off its remaining stake in Canada Goose Holdings Inc. Bain owns about 30.8 million shares, or 60.5% of the company's multiple voting shares, giving it 55.5% of the voting power. The company's chairman and CEO, Dani Reiss, retains about 31.3% of the voting power. The stock price has increased 5.5% to $13.64 in midday trading on Wall Street.

Title: Bain Capital Considers Divesting Stake in Canada Goose Holdings

Private equity firm Bain Capital is reportedly exploring the sale of its controlling stake in luxury outerwear brand Canada Goose Holdings Inc. According to sources cited by Bloomberg, Bain is working with advisers and sounding out interest from potential buyers, including other private equity groups [1].

Bain first acquired its stake in 2013 and took the Toronto-based company public in 2017. As of the end of March, the firm held 60.5% of Canada Goose’s multiple voting shares, which carry 10 times the voting power of the company’s publicly traded stock. This gives Bain 55.5% of total voting control at the firm [1].

Discussions are still in early stages and there is no guarantee that a transaction will take place, the sources added. Other shareholders may also consider participating in a deal. Founded in 1957, Canada Goose has transformed from a small Toronto-based outfitter into a global luxury brand. The company reported C$1.3bn in revenue and approximately C$95m ($69.5m) in net income for the fiscal year ending March 2025. At that time, it operated 74 stores worldwide and held a market capitalisation of $1.26bn, boosted by a 23% gain in its share price year-to-date [1].

Despite macroeconomic headwinds and shifting consumer trends, the company noted in May that recent US tariffs have had minimal impact, thanks to its Canada-based supply chain. Both Bain Capital and Canada Goose declined to comment on the reported stake sale [1].

The stock price of Canada Goose has been influenced by several key factors recently. Analyst Gary Alexander upgraded the company's stock, citing a significant turnaround in its direct-to-consumer sales. This positive outlook from a prominent analyst has likely contributed to the stock's recent rally. Additionally, Canada Goose reported impressive earnings for the quarter, with earnings per share of $0.33, surpassing analysts' consensus estimates of $0.16. The company also saw a 7.4% increase in revenue, further bolstering investor confidence in its financial performance [3].

However, the company's announcement of job cuts at its head office to reduce costs led to a temporary retreat in share prices. This move, while aimed at improving operational efficiency, may have raised concerns among investors about the company's long-term strategy and workforce stability [3].

The stock price has increased 5.5% to $13.64 in midday trading on Wall Street [4].

References:
[1] https://pe-insights.com/canada-gooses-future-in-flux-as-bain-weighs-stake-divestment/
[2] https://simplywall.st/stocks/ca/consumer-durables/tsx-goos/canada-goose-holdings-shares/news/following-a-36-decline-over-last-year-recent-gains-may-pleas-4
[3] https://www.ainvest.com/news/canada-goose-goos-soars-2-13-earnings-analyst-upgrade-2507/
[4] https://uk.finance.yahoo.com/news/bain-considers-selling-off-canada-190207863.html