Canada Goose lowers FY outlook as Mainland China dents Q3 earnings

Canada Goose has lowered its full-year guidance again after restrictions in Mainland China resulted in a small year-on-year drop in its most important quarter.

The outerwear brand made revenue of 576.7 million Canadian dollars in the third quarter ended January 1, down 1.6 percent from the same quarter a year earlier.

The company cited “worse than expected” Covid-related disruptions in Mainland China as well as the timing of wholesale shipments as drivers of the revenue drop.

But CEO and chair Dani Reiss said the company was “pleased with accelerating growth in Mainland China toward the end of the quarter and continue to see promising signs of a strong local rebound to date”.

Profits narrow

Canada Goose’s net income for the third quarter came in at 137.5 million Canadian dollars, down from 151.3 million Canadian dollars a year earlier.

Reiss said that due to “worse than expected” Mainland China disruption and slowing momentum in North America the company has lowered its full-year outlook.

The company now expects annual revenue of between 1.175 billion Canadian dollars and 1.195 billion Canadian dollars, down from its previous guidance of between 1.2 billion Canadian dollars and 1.3 billion Canadian dollars.

It expects non-IFRS adjusted net income per diluted share of between 0.92 Canadian dollars and 1.03 dollars, compared to previous guidance of between 1.31 Canadian dollars and 1.62 Canadian dollars.