Canada Goose Heads South on Fiscal First-Quarter Loss

Canada Goose falls after the luxury coat maker reports a wider-than-expected fiscal first-quarter loss amid a drop in demand for its high-end down-filled coats.

Shares of Canada Goose Holdings  (GOOS) - Get Report fell nearly 6% on Tuesday after the luxury coat maker reported a wider-than-expected fiscal first-quarter loss amid a steep drop in demand for its high-end down-filled coats and luxury garments, particularly in Asia.

The Toronto-based company posted an adjusted loss of C$38.4 million ($28.8 million), or 35 cents a share, in its fiscal first quarter vs. an adjusted loss of C$22.8 million, or 21 cents a share, in the comparable year-earlier period. Analysts polled by FactSet had been expecting a loss of 31 cents a share.

Revenue came in at C$26.1 million, higher than the C$15.3 million expected by analysts polled by FactSet but still well below last year’s C$71.1 million. Wholesale revenue rang in at C$8.7 million, down from C$35.6 million a year ago due to “a significant reduction in shipments due to Covid-19 disruptions to partner operations,” specifically to Asia.

“Given prevailing global uncertainties, including the potential for second wave outbreaks, the pace of retail traffic recovery, and the impact of economic developments and travel restrictions on consumer discretionary spending, all of which are unknown, the company continues to not provide an outlook for fiscal 2021,” Canada Goose said in its earnings statement.

However, the company continues to hold a strong liquidity and cash position “…to provide extensive coverage against ongoing external uncertainties," it said. That included reducing anticipated cash expenses and investments by $90 million in its fiscal first quarter.

Shares of Canada Goose were down 5.85% at $23.35 in trading on the New York Stock Exchange The stock has fallen more than 30% since the start of the year and some 45% over the past 12 months.