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Canada Goose Cites Uncertain Economic Hits on their Revenues

The Canadian-based company Canada Goose Holdings Inc. has cut its estimate for the year, stating that coronavirus restrictions in China and substantial ambiguity in the global economy will have a negative impact on sales and margins.

The Canadian manufacturers of high-end parkas and garments stated that it anticipates achieving revenue of between C$1.2 billion and C$1.3 billion for the fiscal year that will come to a close in March of next year. Earlier, it is anticipated up to $1.4 billion in Canadian dollars.

If sources are to be believed, the previous few months make up the bulk of Canada Goose’s annual sales, and they are currently in the midst of the company’s busiest time of the year.

According to Chief Financial Officer Jonathan Sinclair, it is extremely difficult to make accurate projections about most of the year’s business based on the visibility of only a few weeks’ worth of data. However, analysts said that the recent events that have an impact on trends do not provide credence to our initial outlook.

According to Chief Executive Officer Dani Reiss, the company’s confidence in China as a long-term growth market has not been shaken by the restrictive policies of COVID that have been implemented in the country.

Dani Reiss further added that these policies had caused intermittent store closures. Further, Canada Goose is persistent in its efforts to get leases in the most prominent malls in the essential sites in China.

The company said in a statement that COVID-19 restrictions in Mainland China would negatively affect performance as per the reviewed guidance. The firm further said that it also reflects significant uncertainty from the broader political and macroeconomic environment.

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