// Canada Goose cut its full-year revenue and profit forecasts as Omicron-related restrictions dampen demand
// The business is now expecting total revenue of between £631 million and £640 million
Canada Goose has released its Q3 financial results, revealing a 26.5% increase in revenue to £339 million.
Despite this the luxury fashion retailer has cut its full-year revenue and profit forecasts as Omicron-related restrictions dampened demand for the brand’s luxury parkas and footwear, sending its shares down nearly 20%.
Canada Goose has confirmed it will lower its outlook for fiscal 2022 with the business now expecting total revenue of between £631 million and £640 million, a reduction from the previously expected £651 million to £680 million.
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Shuttered stores and weak retail traffic due to Omicron-related curbs in key markets including Canada, Germany and China weighed on the luxury parka maker’s sales as shoppers stay indoors.
For the third quarter ending 2 January 2022, Canada Goose’s total non-parka revenue did rise by 74.9%, reflecting the brand’s growing year-round lifestyle relevance.
Chief Executive Officer Dani Reiss told Reuters he was uncertain about a recovery timeline, but added that the company was still seeing strong demand.
Toronto, Ontario-based Canada Goose has been ramping up investments in its online platforms to cushion the blow from store closures and reduced footfall, helping the company to post a 28.1% jump in global e-commerce revenue in the third quarter.
A dispute over the company’s return policies also hurt its China business in the latest quarter. Its direct-to-consumer sales, which include sales from its own retail outlets and online business, rose 35.1%, compared with an 85.9% jump in the second quarter.
Dani Reiss, President and CEO at Canada Goose, said: “Canada Goose’s brand momentum and supply chain resilience drove a strong performance in our largest quarter. Our digital business continued to exceed last year’s outsized gains, alongside a sharp improvement in retail productivity,”
“We remain confident in our long-term trajectory for revenue growth and margin expansion, notwithstanding the emergence of temporary and unexpected COVID-19 disruptions in certain markets.”