Shares of Canada Goose Holdings Inc. had their biggest drop in more than two years after the maker of designer parkas cut its annual forecast due to lower sales in Asia and Europe.
The company said it now sees fiscal 2022 revenue in the range of $1.09 billion to $1.11 billion (US$860 million to US$876 million), down from a prior forecast of $1.13 billion to $1.18 billion. Canada Goose also cited COVID-19 variant outbreaks and virus-related restrictions in the current quarter as an additional drag on its outlook.
Before omicron hit, Chinese shoppers had fueled significant sales growth at high-end brands after the country bounced back more quickly from the pandemic than the U.S. and other regions. Europe, meanwhile, had been slower to recover but consumers had recently started to step up their spending.
Canada Goose fell as much as 21 per cent in New York trading, its biggest drop since May 2019. The stock had slid 18 per cent in the past year through Wednesday’s close.
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