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Luxury firms have seen sales in China recover sharply after the country lifted its COVID-19 restrictions, with top names like LVMH and Ray-Ban maker EssilorLuxottica logging strong performances in the market in their recent quarterly reports.
Canada Goose said revenue from its Asia Pacific segment jumped 52.2% to C$24.5 million in the first quarter ended July 2, building on a 65.4% surge seen in the prior quarter.
Demand in the U.S. also recovered in the quarter following a slump earlier, signaling that Canada Goose’s high-end parkas were still in vogue among wealthy Americans even as a strong post-pandemic splurge on luxury goods started to sag.
Still, Canada Goose forecast current-quarter sales below estimates along with a wider-than-expected loss, hinting recovery in both markets could stall.
Bleak economic figures for China and record high youth jobless rate in the market have stoked investor fears, while major global companies including L’Oreal and consumer goods firm Procter & Gamble (NYSE:PG) have taken a cautious stance.
Canada Goose expects revenue of C$270 million to C$290 million in the second quarter, below analysts’ estimate of about C$298.5 million.
It sees adjusted net loss per share of between 24 Canadian cents and 17 Canadian cents, compared with estimates for a profit of 6 Canadian cents.
The Toronto, Ontario-based company’s revenue rose 21% to C$84.8 million ($63.44 million) in the first quarter, beating estimates of C$75.4 million, according to Refinitiv data.
It posted a loss of 70 Canadian cents per share, smaller than a loss of 86 Canadian cents per share expected by analysts.
($1 = 1.3368 Canadian dollars)
