Canada Goose Sales Fall 63.3 Percent in Coronavirus Slowdown
Canada Goose Holdings is focusing in on its direct-to-consumer business in the midst of the coronavirus.
For the first quarter ended June 28, the company’s revenues fell 63.3 percent to 26.1 million Canadian dollars while losses widened to 48.1 million Canadian dollars from 25.5 million Canadian dollars a year ago. (Canadian dollars are currently valued at 74 cents in the U.S.).
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The wholesale channel accounted for 74.2 percent of Canada Goose’s sales in the second quarter and the company said shipments were “materially lower” as stores reopen.
Dani Reiss, president and chief executive officer, said: “Adversity demands change, drives innovation and reveals winners.
“For Canada Goose, that has never been more true than today, as we begin to see signs of recovery around the world, heading into our most important season. Where we face uncertainty, we have practiced discipline and flexibility, and where we see opportunity, we have accelerated our strategic plans.”
The company is pressing on with its plans to develop “globally scalable in-house e-commerce and omni-channel innovation” and has increased investments in these areas for the key fall/winter season.
Twenty-one of the firm’s 22 stores are open now and retail investments have been reduced and refocused, with new openings focused on Mainland China, where the market is bouncing back. The firm has committed to four stores in Chengdu, the first of which opened in June and is performing ahead of expectations.
