Tension is mounting between Canada and China, and Toronto-based luxury outerwear retailer Canada Goose is suffering because of it. The brand's plummeting stock appears to be collateral damage as a result of China's current overall attitude towards Canada. People in China are boycotting the outerwear brand en masse as a form of protest about the arrest of Huawei's Meng Wanzhou in Vancouver. Canada Goose appears to be taking such a hard financial hit that their new flagship store in Beijing will no longer be opening on schedule.
According to the Financial Post, the Beijing flagship was set to open tomorrow, December 15th, in one of the city's trendiest shopping districts. Canada Goose announced the delay on Friday, just one day before the grand opening. According to them, the delay is "due to construction reasons."
The Post reports that Canada Goose shares tanked by a whole 20% since the Huawei arrest scandal went public. China has been a major source of revenue for Canada Goose, and the luxury retailer has been expanding rapidly into major cities there. Now, it appears that those expansions are grinding to a halt.
Meanwhile, at the brand's home base in Toronto, Canada Goose sales appear to be completely unaffected by the Huawei scandal. The brand's Yorkdale Mall location, for example, is still seeing lineups around the corner just to get in.
Earlier this week, China retaliated against Wanzhou's arrest by detaining a former Canadian diplomat named Michael Kovrig. China warns that Canada will face "grave consequences" if Wanzhou is not released. Wanzhou's bail hearing remains ongoing in Vancouver.
Canada Goose has yet to announce the new opening date of their Beijing flagship, but it could very well be delayed until tensions between the two countries have dissipated.