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Bloomberg
Canada Goose Holdings dropped as much as 9% after the company said activity was slow in its reopened stores, raising concerns about demand ahead of the key winter season. The company said it will focus new store openings this year on mainland China, “where the recovery of traffic remains ahead of other markets.â€
The height of the crisis hit the company during its quietest season, as parka orders tend to pick up closer to winter months. While 21 of 22 of its retail stores have reopened, traffic is “considerably lower†than a year earlier, according to the company, which predicted a “significant†revenue decline in the current quarter.
Revenue in the first quarter, which ended on June 28, was $19.7 million, down 63% from a year earlier. The company isn’t providing an outlook for 2021.
The company has been decreasing its reliance on wholesalers and focus on its own, more lucrative stores and e-commerce. Shipments to wholesalers are “materially lower†and will generate lower revenue this year, the company said.