Canada Goose shares drop 20% amid Huawei CFO arrest

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Canada Goose

The arrest of a senior Huawei executive has prompted a call for a boycott of Canadian retailer Canada Goose as tensions grow between Beijing and Toronto.

Since the arrest of Meng Wanzhou, the chief financial officer of Chinese tech firm Huawei, in Vancouver last week, Canada Goose has become a high-profile victim of a boycott campaign that has emerged in response.

The retailer’s shares also dropped almost 20 per cent amid reports that former Canadian diplomat Michael Kovrig had been detained in China.

According to Chinese media, Kovrig now faces accusations of harming state security.

Chinese social media platform Weibo has been used to call for a boycott against Canada Goose.

In recent years, flagship Canadian companies such as Tim Hortons, have sought to expand their names in China, a widely untapped market for Canadian businesses.

Retail Advisors Network co-founder Bruce Winder said: “You look at Canada Goose and it says Canada right in it. It’s very easy for people to sort of pick up on that.”

Canada Goose had plans to open up a store in Beijing.

Its president and chief executive Dani Reiss travelled to the Chinese capital last month just before Meng’s arrest.

China makes up 10 per cent of the retailer’s global sales – but the company has hoped to increase in the coming years, with Reiss calling the expansion potential “absolutely massive”.

Winder said: “I hope it blows over the next couple days, but it all depends on sentiment.

“It could get worse and you might see other companies become boycotted as well.”

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