The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Canada Goose Holdings Inc trimmed its full-year revenue and profit forecast on Wednesday as Covid-19-related restrictions weigh down on its luxury parka sales in China.
The Chinese government’s efforts to contain the spread of Covid-19 cases with zero-Covid policy has impacted luxury fashion retailers, who have taken a hit on their revenues due to store closures, inflated inventories and fall in demand as consumers turn more cautious in the region. The Toronto, Ontario-based company cut its fiscal 2023 sales expectation to C$1.2 billion ($882.74 million) to C$1.3 billion, compared with its prior forecast of C$1.3 billion to C$1.4 billion.
Canada Goose now expects fiscal 2023 adjusted profit to be between C$1.31 and C$1.62 per share, compared with its prior forecast of C$1.60 to C$1.90.
US-listed shares of the company fell about 1 percent in premarket trading.
ADVERTISEMENT
By Granth Vanaik; Editor: Krishna Chandra Eluri
Learn more:
Canada Goose Results Thrive as Luxury Demand Defies Inflation
Canada Goose Holdings Inc surpassed Wall Street targets for quarterly results after affluent consumers undeterred by decades-high inflation snapped up its luxury parkas and jackets.
Fashion brands are edging in on the world’s largest gathering of design professionals and their wealthy clients, but design companies still dominate the sector, which is ripe for further consolidation, reports Imran Amed.
Blocking the deal would set a new precedent for fashion M&A in the US and leave Capri Holdings in a precarious position as it attempts to turn around its Michael Kors brand.
After preserving his fashion empire’s independence for decades, the 89 year-old designer is taking a more open stance to M&A.
The sharp fall in the yen, combined with a number of premium brands not adjusting their prices to reflect the change, has created a rare opportunity to grab luxe goods at a discount.