Canada Goose Holdings Inc. reported revenue and earnings that fell far short of analysts' estimates after COVID-19 outbreaks hurt sales in China in December, the company's busiest month. The shares fell.
The Canadian manufacturer of high-end parkas and apparel cut its outlook for the current fiscal year, forecasting that margins and profit will be significantly lower than expected.
Slower sales mean that inventories were up — about 30 per cent higher than a year earlier.
Canada Goose's U.S. shares fell 5.7 per cent to US$23.24 in premarket trading as of 7:20 a.m. in New York.
The Vancouver-based company had slid 22 per cent in the 12 months through Wednesday.
For fiscal 2023, the company is now expecting profit of no more than $1.03 a share, on an adjusted basis.
It previously forecast $1.31 to C$1.62 per share.
Canada Goose said it's seeing “slowing momentum in North America against a challenging macroeconomic environment.”
“We believe these challenges are temporary and our brand strength and strategy position us well to drive profitable growth,” Chief Executive Officer Dani Reiss said in a statement. Growth in mainland China improved toward the end of December, and the company sees “promising signs of a strong local rebound to date.”
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