Canada Goose Holding’s growth track has been hit by the coronavirus — at least for now.
Dani Reiss, president and chief executive officer, told WWD that while the brand’s business in China has hurt its outlook, the results from the last quarter were strong and the long-term trajectory is still good.
In the meantime, Wall Street adjusted its view. Shares of the Canadian outerwear-maker were down 3.8 percent to $32.03 in midday trading. Third-quarter results showed continued expansion, but the outlook was pared. The company is now projecting annual revenue growth of 13.8 to 15 percent, which implies a top line of 945 million Canadian dollars to 955 million Canadian dollars, and is down from the prior forecast calling for “at least 20 percent” growth.
“It’s a major near-term headwind for us and for everyone in the business,” Reiss said of the virus outbreak.
Chinese shoppers are staying home to safeguard their health, which hurts both local retail and stores in international shopping destinations, which are now inaccessible for many given canceled flights and travel restrictions.
Canada Goose makes its products in Canada, where it is consolidating its production and taking more in house, but it does rely on a global supply chain for inputs.
Dani Reiss, president and chief executive officer, told WWD that while the brand’s business in China has hurt its outlook, the results from the last quarter were strong and the long-term trajectory is still good.
In the meantime, Wall Street adjusted its view. Shares of the Canadian outerwear-maker were down 3.8 percent to $32.03 in midday trading. Third-quarter results showed continued expansion, but the outlook was pared. The company is now projecting annual revenue growth of 13.8 to 15 percent, which implies a top line of 945 million Canadian dollars to 955 million Canadian dollars, and is down from the prior forecast calling for “at least 20 percent” growth.
“It’s a major near-term headwind for us and for everyone in the business,” Reiss said of the virus outbreak.
Chinese shoppers are staying home to safeguard their health, which hurts both local retail and stores in international shopping destinations, which are now inaccessible for many given canceled flights and travel restrictions.
Canada Goose makes its products in Canada, where it is consolidating its production and taking more in house, but it does rely on a global supply chain for inputs.
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