Luxury parka maker Canada Goose Holdings Inc. slashed expected revenue growth for the year due to “material negative impact” from the new coronavirus outbreak.
Canada Goose has seen significant reductions in revenue at retail stores and through online shopping across Greater China.
“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.
Revised Fiscal 2020 Outlook
The coronavirus outbreak is having a material negative impact on performance in the current fiscal quarter ending March 29, 2020. As a result, the Company has revised its outlook for fiscal 2020, which was last reiterated with the release of second quarter fiscal 2020 results on November 13, 2019. The health crisis has resulted in a sharp decline in customer traffic and purchasing activity. Retail stores and e-commerce across Greater China have and continue to experience significant reductions in revenue. Due to global travel disruptions, retail stores in international shopping destinations in North America and Europe are also affected. No supply chain interruptions have occurred. The Company believes that this is a temporary change in consumer behavior due to health precautions in extraordinary circumstances. However, the extent and duration of the disruptions remain uncertain and prolonged disruptions may also negatively impact future fiscal periods. Canada Goose’s brand and business momentum in Greater China remain strong, as reflected in the doubling of revenue in Asia in the fiscal third quarter prior to the outbreak.