Canada Goose announced on Wednesday (November 2), local time, that as of the second quarter of fiscal 2023, net profit fell by 66.7%, and revenue in the Asia-Pacific region fell. The company’s stock price fell more than 9% that day.
According to the Sino-Singapore Jingwei report, the announcement shows that Canada Goose’s revenue in the second fiscal quarter reached about 277 million Canadian dollars (the same below, 287 million Singapore dollars), a year-on-year increase of 19%; net profit was only 3.3 million Canadian dollars, a drop of three points of two.
In terms of regions, Canada Goose’s revenue increased in Canada, the United States, Europe, the Middle East and Africa, and only declined in the Asia-Pacific region.
At the same time, Canada Goose lowered its guidance for fiscal 2023, expecting full-year revenue of US$1.2 to US$1.3 billion (the same below, S$1.7-1.8 billion), down from US$1.3-1.4 billion previously. The company said it was mainly due to expectations that the restrictions related to the epidemic in mainland China will continue to have an impact on performance, and there are also significant uncertainties in the global macro economy.
It is worth noting that Canada Goose was previously “double-standard” in mainland China, and investors have already reduced their holdings of the company’s shares.
At the end of 2021, some consumers revealed that Canada Goose stipulates that stores in mainland China are not allowed to return goods, and that the trademark embroidery is wrong, the stitching is rough, and the fabric is pungent, and it is impossible to protect the rights. Subsequently, Chinese regulators interviewed Canada Goose, and the company admitted its mistake.