Luxury parka maker Canada Goose Holdings Inc. left its full-year revenue forecast unchanged after comfortably beating quarterly estimates on Wednesday, at a time when rising COVID-19 cases in key markets threaten to derail a nascent recovery.
U.S.-listed shares of the company fell 6 per cent in premarket trading, as the conservative outlook contrasted with upbeat expectations from peers Ralph Lauren Corp. and Michael Kors-owner Capri Holdings Ltd.
The highly infectious Delta variant of the virus has raised fears that potential new lockdowns could slam the brakes on a rebound in the global luxury-goods industry from an unprecedented sales contraction last year owing to the pandemic.
Some cities in China, a key market for Canada Goose and other high-end apparel makers, have already stepped up restrictions, cut flights and increased testing to control an outbreak of the variant.
However, the new restrictions have not had an impact on the company’s business in China yet, Canada Goose chief executive officer Dani Reiss told Reuters, adding that the company was prepared for “whatever’s ahead.”
Canada Goose, best known for its pricey red parkas, reiterated its full-year revenue forecast of more than US$1-billion.
The Toronto-based company said first-quarter revenue rose to US$56.3-million, from US$26.1-million a year earlier.
Analysts on average had expected US$49.7-million, according to IBES data from Refinitiv.
Excluding items, Canada Goose reported a loss of 45 US cents per share, compared with analysts’ expectations for a loss of 54 cents.
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