Luxury parka maker Canada Goose Holdings Inc. slashed expected revenue growth for the year due to “material negative impact” from the new coronavirus outbreak.
The health crisis “has hit our biggest current growth market,” said chief executive Dani Reiss during a conference call with analysts Friday after the company released its third-quarter financial results.
“As it is to everyone in the luxury industry, this is — obviously — a major near-term headwind,” he said.
Canada Goose has seen significant reductions in revenue at retail stores and through online shopping across Greater China. Meanwhile, global travel disruptions, such as flight cancellations and restrictions on movement, have affected retail stores in international shopping destinations in North America and Europe.
“Understandably, people are staying home and avoiding shopping for their own health and safety in China and abroad,” said Reiss.
Canada Goose now expects annual revenue for its 2020 financial year to grow between 13.8 per cent and 15 per cent — down from the earlier expected figure of at least 20 per cent. That translates to revenue between $945 million and $955 million.
“While we expect this to have a material near-term impact, this is a temporary disruption,” said Reiss, though the company noted in a statement that the disruption’s extent and duration remain unknown, and a prolonged situation could impact future fiscal periods.
Reiss said the company expects any long-term supply chain impact to be offset by inventory Canada Goose built up over the last year.
Indigo Books & Music Inc. also said it’s feeling the effects of the coronavirus outbreak during its third-quarter results conference call Friday morning — a day after the company released its results.
Some of the company’s products that are made in China “will now be a little bit time affected,” said CEO Heather Reisman, adding the company is “working against that problem now.”
It’s hoping to see these new general merchandise products hit store shelves this fall, she said.
“We are, like everyone else … impacted,” said Reisman as the company has a good amount of work in China.