Canada Goose Holding’s growth track has been hit by the coronavirus — at least for now.
Dani Reiss, president and chief executive officer, told WWD that while the brand’s business in China has hurt the firm’s outlook, the results from the last quarter were strong and that the long-term trajectory is still good.
In the meantime, Wall Street adjusted its view. Shares of the Canadian outerwear-maker fell 6.6 percent to $30.99. Third-quarter results showed continued expansion, but the outlook was pared. The company is now projecting annual revenue growth of 13.8 percent to 15 percent, which implies a top line of 945 million Canadian dollars to 955 million Canadian dollars, and is down from the prior forecast calling for “at least 20 percent” growth.
“It’s a major near-term headwind for us and for everyone in the business,” Reiss said of the virus outbreak.
Canada Goose’s third-quarter net income rose 14.1 percent to 118 million Canadian dollars, or 1.07 Canadian dollars per diluted share, from 103.4 million Canadian dollars, or 0.93 Canadian dollars a share, a year earlier.
Sales increased 13.2 percent to 452.1 million Canadian dollars.