Canada Goose Succumbs to the Coronavirus Chills

Author:
Publish date:
Video Duration:
2:07

Canada Goose is facing some headwinds, particularly in Asia, despite a stronger-than-expected fiscal third quarter. 

The luxury coat and garment company on Friday announced fiscal third-quarter earnings that smashed analysts' forecasts amid strong holiday season sales growth, particularly in Asia, where sales doubled.   

Canada Goose highlighted its “standout performance” in Asia, where revenue doubled to $94.7 million from $46.4 million. However, it also recognized the current “heightened uncertainty” due to the coronavirus health crisis, noting the outbreak is “having a material negative impact on performance in the current fiscal quarter ending March 29.”

The company noted that the health crisis "has resulted in a sharp decline in customer traffic and purchasing activity," with both retail stores and e-commerce across Greater China experiencing "significant reductions in revenue."

Retail stores in international shopping destinations in North America and Europe are also being affected due to global travel disruptions, Canada Goose said.

As such, Canada Goose is now forecasting fiscal 2020 adjusted net income of $1.33 to $1.37 a share, lower than its own previous forecasts but also still above analysts’ consensus estimates of $1.25 a share.

Catch up on the Latest Videos on TheStreet!