Canada Goose cuts full-year forecast amid China disruptions, slowing momentum
Canada Goose Holdings Inc. lowered its annual sales and earnings forecasts on Thursday as COVID-19-related disruptions in China and slowing momentum in North America curbed the luxury parka maker’s sales in its biggest quarter of the year.
Canada Goose Holdings Inc. lowered its annual sales and earnings forecasts on Thursday as COVID-19-related disruptions in China and slowing momentum in North America curbed the luxury parka maker’s sales in its biggest quarter of the year.
“During our seasonally significant third quarter, we faced challenges, the biggest being in … China, where the disruptions were worse than we anticipated and significantly impacted our performance,” Canada Goose CEO Dani Reiss said during a call with analysts.
“We expected a certain level of disruption. What we didn’t expect was the sudden reopening in early December,” he said. “This led to a spike in infections, which had a significant impact on our business in what is normally our most productive trading month.”
The rapid spread of COVID-19 has dramatically reduced consumer traffic, while China’s workforce has also been impacted by illness, Reiss said.
In North America, the company saw slower demand late in the quarter ended Jan. 1, with “mixed results” continuing since then, he said.
“We believe this pressure is temporary and we remain focused on increasing brand awareness and relevance,” Reiss said.
The Company’s net income attributable to shareholders was $134.9 million, or $1.28 per diluted share, for the quarter, compared to $151.3 million, or $1.40 per diluted share, for the year Previous year.
Revenue for the Company’s third quarter of fiscal 2023 was $576.7 million versus $586.1 million.
On an adjusted basis, Canada Goose said it earned $1.27 per diluted share in the most recent quarter, compared to adjusted earnings of $1.40 per diluted share a year ago.
In its full-year outlook, the company said it now expects total revenue to range between $1.175 billion and $1.195 billion, down from its previous guidance of $1.2 billion to $1.3 billion.
Canada Goose also said it now expects full-year adjusted net income per diluted share to be between 92 cents and $1.03, down from its previous guidance of $1.31 to $1.62.
This report from The Canadian Press was first published on February 2, 2023.
Companies in this story: (TSX:GOOS)
Brett Bundale, The Canadian Press
