People for the Ethical Treatment of Animals says it will halt its campaigns against Canada Goose Holdings Inc. after the luxury outerwear company announced it will no longer use fur in its garments.
That doesn’t mean PETA is totally letting up on the company and its practices.
“PETA and its affiliates are suspending their international campaigns against Canada Goose today, after years of eye-catching protests, hard-hitting exposés, celebrity actions, and legal battles, as the company has finally conceded and will stop using fur — sparing sensitive, intelligent, coyotes from being caught and killed in barbaric steel traps,” said Ingrid Newkirk, president of PETA, in a statement.
“PETA will now re-engage the company to push for an end to its use of feathers, which geese and ducks continue to suffer for.”
Canada Goose announced early Thursday that it will stop purchasing fur by the end of 2021 and stop manufacturing items with fur by the end of 2022.
The company has taken steps to be more eco-conscious, introducing, for instance, the Standard Parka, which generates 30% less carbon and requires 65% less water during production versus the Expedition Parka.
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A wide spectrum of consumer companies have increased their environmental efforts in an effort to win over young consumers who express great concern about climate change.
The ThredUp 2021 Resale Report found that one out of three consumers care more about wearing sustainable clothing now than they did before the COVID-19 pandemic.
Even before Canada Goose’s announcement, analysts were upbeat about its business prospects.
“Long-term, we remain optimistic on Canada Goose’s growth potential given a: (1) powerful brand equity based on high levels of functionality and quality; (2) vertically integrated supply chain with opportunity to become more efficient and bring more manufacturing in-house to boost margins; and (3) opportunity to widen addressable market and grow top line as global growth, shift to direct-to-consumer, and product category expansion strategies continue to be executed,” wrote Cowen in a May note.
Cowen rates Canada Goose stock at outperform with a $49 price target.
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In a more recent June 2 UBS note based on a discussion with a former senior leader at Canada Goose, analysts also express optimism about the company’s long-term prospects for reasons including its commitment to performance and distribution control.
Moreover, Canada Goose is on the path to becoming a lifestyle brand rather than just a “parka brand,” the report said.
“This likely unlocks opportunities for Canada Goose to grow within categories such as knit tops and boots,” the note said.
UBS rates Canada Goose stock a buy with a $58 price target.
Canada Goose stock jumped 3.2% in Thursday trading, and has gained 41.8% for the year to date.
The S&P 500 index
SPX,
+0.58%
is up 13.6% for 2021 to date.
