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.
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
