TORONTO, Canada — Canada Goose Holdings Inc on Wednesday projected negligible revenue for its current quarter, as stores in fashion capitals across the world that sell its high-end down jackets were forced to shut due to the Covid-19 pandemic.
While business has begun to resume in some parts of the world, demand for clothing from Canada Goose and other high-end fashion companies is not expected to rebound quickly as the global economy enters a deep recession and major retail store customers teeter on the brink of collapse.
Canada Goose, whose red parkas are worn by everyone from Arctic scientists to Hollywood celebrities, said shipments to department stores have been largely shutoff since March due to coronavirus-led restrictions.
One of its most high profile retail customers, Neiman Marcus Group, filed for bankruptcy protection last month.
The first quarter is usually the company's smallest in the fiscal year, representing 7.4 percent of annual sales in fiscal 2020. Analysts expect revenue of C$38.3 million ($27.8 million) in the quarter ending in June.
However, Canada Goose said it was taking steps to cut expenses and investments in the first quarter by about C$90 million. The company also said it has enough cash flow and liquidity to address a varied range of coronavirus-related impacts that may occur through fiscal 2021.
The company's revenue fell nearly 10 percent to C$140.9 million in the fourth quarter ended March 29, but beat analysts' estimates of C$128.1 million, helping send its US-listed shares up 3.5 percent in premarket trading.
The company's quarterly net income fell over 72 percent to C$2.5 million. Excluding certain items, Canada Goose reported a loss of 12 Canadian cents per share, in line with expectations, according to IBES data from Refinitiv.
By Uday Sampath; editor: Krishna Chandra Eluri.