Canada Goose lowered its outlook for the year, saying coronavirus restrictions in China and “significant uncertainty in the global economy” will hurt sales and margins. The shares fell 8 per cent in premarket trading in New York.
The Canadian manufacturer of high-end parkas and apparel said it expects revenue to come in at C$1.2 billion (€883 million) to C$1.3 billion for the fiscal year than ends next March. Previously, it projected as much as C$1.4 billion.
Canada Goose also cut its forecast for adjusted earnings before interest and taxes, giving a range of C$215 million to C$255 million for the fiscal year. That’s nearly 15 per cent below earlier projections.
“The revised guidance assumes that Covid-19 restrictions in Mainland China will continue to negatively impact performance,” the company said in a statement on Wednesday. It also reflects “significant uncertainty from the broader macroeconomic and political environment,” the firm said.
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Canada Goose shares had fallen more than 55 per cent in New York this year. It’s been a tough year for luxury stocks, with the S&P Global Luxury Index dropping about 30 per cent so far in 2021.
For the quarter ended October 2nd, the company reported revenue of C$277 million, slightly above analysts’ forecasts for C$263 million. Revenue was up in all regions except the Asia Pacific, which accounted for about 20 per cent of total sales in the quarter. – Bloomberg
