Canada Goose lowers outlook as China’s zero COVID policy hits sales

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Canada Goose Holdings Inc. said on Wednesday that revenue rose in the second quarter, but revised down its full-year outlook amid a hit to sales in China, one of its key markets.

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The luxury parka retailer brought in $277.2 million for its second quarter ended Oct. 2, up 19% from the same period a year ago. Adjusted earnings before interest and taxes rose 70% to $29.6 million and earnings per share fell nearly 67% to 3 cents per share.

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« We are encouraged by our performance in the second quarter, » chief executive Dani Reiss said in a press release. « Given the extent of the COVID-related disruptions in mainland China as well as an uncertain global macroeconomic backdrop, we have revised our outlook for fiscal year 2023. »

Canada Goose forecasts total revenue of between $1.2 billion and $1.3 billion, compared to an initial forecast of $1.3 billion to $1.4 billion. He also provided guidance for the third quarter, with sales expected to be between $580 million and $660 million.