The coronavirus outbreak is apparently affecting the retail world in China, at least for companies like Canada Goose. The luxury retailer stated that the virus is negatively impacting their sales. Canada Goose provided details in a press release of its third quarter fiscal highlights.
The company reported that the outbreak is presenting "a material negative impact" on its earnings and that it has "resulted in a sharp decline in customer traffic and purchasing activity."
Sales in greater China from both online and in-store purchases have apparently experienced "significant reductions in revenue."
Stores in North America and Europe have also been affected. Canada Goose says this due to global travel restrictions. Narcity has reached the company for more information and we will update the story once we hear back.
Canada Goose chief executive Dani Reiss told analysts in a conference call, "Understandably, people are staying home and avoiding shopping for their own health and safety in China and abroad," says a report from the Canadian Press via Global News.
Reiss also expressed his concern over the company's staff working in China. "The health and safety of our team in Greater China is our top priority, and we are closely watching the situation and adjusting our operations as needed in co-operation with the local authorities," he said.
Canada Goose has also donated about $190,000 to the Wuhan Charity Foundation, reports the Canadian Press. The funds go toward helping to combat coronavirus.
While the company's own document indicates that the supply chain has not been affected by the worldwide outbreak, it does say that there is no way of knowing how long the interruptions to sales may last.
The report also warns that future fiscal periods could still be affected. Prior to the outbreak, Canada Goose had grown its business in China, doubling its revenue in the third quarter.
The company had previously predicted an annual revenue growth of 20 percent. However, that number is now somewhere between 13.8 and 15 percent, implying revenue of $945m to $955m.
Canada Goose's stock took a hit in 2018 during a boycott of the brand in China. This came as a result of Huawei executive Meng Wanzhou's arrest in Canada.