Canada Goose Holdings Inc. lost more than a quarter of its market value after reporting quarterly revenue that missed analysts’ estimates, reigniting concerns that the luxury parka maker’s meteoric growth era is ending.

Shares plunged 27 per cent in Toronto to $48.52 at 11:44 a.m., the biggest intraday decline since the company went public at $17 two years ago.

Key Insights

Fourth-quarter revenue rose 25 per cent to $156.2 million, below analysts’ average estimate of $158.9 million. That’s the first miss on sales since Canada Goose’s IPO.

While adjusted profit beat expectations, the rare revenue shortfall raised concerns about whether demand is leveling off more quickly than anticipated.

Canada Goose also said that revenue would rise at least 20 per cent this fiscal year -- less than analysts’ 26 per cent forecasts and down from 40 per cent last year.

Adjusted net income per share will rise at least 25 per cent, also short of the 29 per cent growth forecast from analysts. In a market that has punished retailers for any sign of weakness, that was too much for investors to bear.

If there was any solace to be found, it was in Chief Executive Officer Dani Reiss’s optimism about the expansion into China, which will be a key source of growth. He told analysts on a conference call the brand’s entrance into the market was “very successful.”

The retailer opened its first flagship store in Beijing last December and plans to open three additional locations in China.