Canada Goose trims annual profit forecast on dipping China demand (updated)

Canada Goose Holdings

06/02/2025 13:04

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text)
       Feb 6 (Reuters) - Canada Goose Holdings  GOOS.TO 
 GOOS.N  trimmed its annual profit forecast and missed quarterly
revenue estimates on Thursday due to choppy sales in key luxury
goods market China, sending its U.S.-listed shares down 6% in
premarket trading.
    Weak consumer spending in China, which is grappling with
youth unemployment and a property crisis, has been a major
concern for the luxury goods industry and has slowed demand
recovery in the region, significantly impacting brands such as
Canada Goose.
    U.S. luxury retailer Estee Lauder  EL.N , which bet on
China, expanded a restructuring plan on Tuesday that involves up
to 7,000 job cuts as the cosmetics giant grapples with
persistent demand weakness, especially in Asia.
    Toronto, Ontario-based Canada Goose saw revenues in Greater
China drop by 4.7%, compared to the previous quarter's 5.7%
jump.  
    It expects fiscal 2025 adjusted profit of flat to
low-single-digit percentage growth, compared to its previous
forecast of a mid-single-digit rise. 
    The company's third-quarter revenue fell to C$607.9 million
($423.59 million), from C$609.9 million a year earlier. 
    Analysts on average had expected revenue of C$620.9 million,
according to data compiled by LSEG.
    Excluding one-off items, Canada Goose posted a profit of
C$1.51 per share, compared with an estimate of C$1.54 per share.
   

($1 = 1.4351 Canadian dollars)

 (Reporting by Aatrayee Chatterjee in Bengaluru; Editing by
Pooja Desai)
 ((Aatrayee.Chatterjee@thomsonreuters.com))