Hong Kong protests haven't hurt Canada Goose: CEO
Canada Goose (GOOS) is still bringing in sales from Hong Kong and China, despite the onset of violent protests in the city and escalating trade tensions that have weighed on the country’s consumer perception of foreign brands.
“We are obviously monitoring the situation in Hong Kong, but aside from minor disruptions here and there it’s business as usual. Our stores are open and they continue to perform in-line with our expectations. So, Hong Kong is doing well. All of Asia is doing well, too. Japan is a really strong market for us,” Canada Goose CEO Dani Reiss tells Yahoo Finance.
As part of its new global retail store push, Canada Goose opened its first company store in Hong Kong at IFC Mall in fall 2018. The company followed that opening with a new store in Beijing in December and another in Shenyang last month. Overall, the company now operates 13 retail stores around the world.
Canada Goose is hoping to cash in on the historically strong interest in luxury goods by consumers in China and Hong Kong .
So far so good for Canada Goose over in Asia.
The company said in its fiscal first quarter earnings release Wednesday that sales in Asia increased more three times versus a year ago. It highlighted shipments to wholesale partners in Japan and South Korea and early sales from stores in China.
Reiss says Canada Goose will continue to open stores in each region despite unsettling macro and political backdrops.
“We have not made any changes to our China plans,” Reiss says.
A solid quarter overall
More broadly, Canada Goose’s first quarter was solid considering ongoing traffic pressure at many of its department store customers. Total revenue increased 59.1% from the prior year on the back of interest in Canada’s lightweight spring/summer offerings. Sales beat Wall Street estimates, as did the adjusted loss per share.
The company reiterated its revenue and adjusted net profit growth of at least 20% and 25%, respectively, in the current fiscal year.
Brian Sozzi is an editor-at-large and co-host of The First Trade at Yahoo Finance. Follow him on Twitter @BrianSozzi
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