Canada Goose cuts outlook after COVID disruption hits China sales
The luxury parka maker said on Feb. 2 it expects total revenue of between $1.175 billion and $1.195 billion for its full fiscal year instead of the $1.2 billion to $1.3 billion it forecast in November.
The company reported that revenue dropped 1.6 per cent in the third quarter ended Jan. 1 from a year earlier to $576.7 million, largely due to the impacts of COVID policy in China, Canada Goose’s biggest market.
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China has since eased COVID protocols and chief executive Dani Reiss said an increase in growth towards the end of the quarter was promising. “However, for most of the third quarter which includes December, our busiest month of the year, our performance was impacted by worse than expected COVID-19 related disruptions in Mainland China,” the CEO said in a statement.
On a per-share basis, diluted earnings dropped nearly nine per cent to $1.28. Net income fell in the quarter by almost 11 per cent to $134.9 million. Gross profit “was favourably impacted by pricing,” the company said, and edged up just over half a per cent to $416.4 million.
Shares were down almost six per cent in pre-market trading.
More to come …
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