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The Chinese government’s efforts to contain the spread of COVID-19 cases with zero-COVID policy has impacted luxury fashion retailers, who have taken a hit on their revenues due to store closures, inflated inventories and fall in demand as consumers turn more cautious in the region.
European peer Kering (EPA:PRTP) and cosmetics group L’Oreal had last month warned that curbs on travel in China due to COVID-19 dragged down their performance in the quarter.
Cosmetics maker Estee Lauder (NYSE:EL) on Wednesday also signaled a hit to sales from persistent lockdowns in China.
Canada Goose cut its fiscal 2023 sales expectation to C$1.2 billion ($882.74 million)-C$1.3 billion, compared with its prior forecast of C$1.3 billion-C$1.4 billion.
The luxury parka maker now expects fiscal 2023 adjusted profit to be between C$1.31 and C$1.62 per share, compared with its prior forecast of C$1.60 to C$1.90.
However, the company earned second-quarter adjusted profit of 22 Canadian cents, on a revenue of C$277.2 million, beating analysts’ estimates as per Refinitiv data.
U.S.-listed shares of the company fell 2.44% in premarket trading.
($1 = 1.3594 Canadian dollars)
