© Reuters. FILE PHOTO: The Canada Goose logo is seen at a store in Manhattan, New York City, US, February 7, 2022. REUTERS/Andrew Kelly
Written by Deborah Marie Sophia
(Reuters) – Canada Goose Holdings (NYSE: Inc) on Thursday issued a cautious note about its U.S. business as luxury spending slumped in the market, overshadowing an upbeat annual sales forecast driven by a rebound in China and sending its shares lower. about 11%.
A reversal in tough COVID-19 policies in China — a major market for luxury goods — has encouraged affluent shoppers there to snap up everything from Cartier jewelry to Birkin bags, driving sales at many high-end brands.
However, US shoppers are making a pause for post-pandemic splurges on high-end clothing and accessories, with companies including luxury fashion houses like LVMH and owner Gucci. dry (EPA:) Seeing declining demand.
British luxury brand Burberry on Thursday also noted “a challenge (in the US) at the moment,” with sales down 7% in the Americas.
“We’re not very ambitious for this year in the US… the market is going to be a little bit more difficult in the US because of the macro economy,” Jonathan Sinclair, CFO, Canada Goose, said on an earnings call.
Canada Goose, known for its bright red bomber jackets and pricey puffer jackets, saw US revenue decline 4.5% in the quarter.
It also expects annual earnings per share in the range of C$1.20 to C$1.48, which was the midpoint below the estimate of C$1.46 per share, according to Refinitiv data.
However, a 65.4% increase in Asia Pacific revenue, along with strong demand in Europe and Canada, helped the luxury winter apparel maker beat expectations in its fourth-quarter results.
Toronto, Ontario-based Canada Goose said it expects 2024 fiscal revenue between C$1.40 billion ($1.05 billion) and C$1.50 billion, while analysts expected C$1.33 billion.
($1 = 1.3372 Canadian dollars)
