Remember that ‘Chinese boycott’ of Canada Goose down jackets because of Meng Wanzhou? Revenue numbers show it didn’t happen, with sales rising, and forecasts up
- Despite a December call for Chinese buyers to spurn Canada Goose after the arrest of Huawei’s CFO in Vancouver, sales climbed 50 per cent in Q4 2018
- Revenue forecasts have been increased compared to November’s predictions – but Canada Goose stock tanked on Thursday on the back of weak US retail data
Canada Goose Holdings boosted its annual forecast for the second time in six months, signalling its premium down parkas remain popular with Chinese shoppers amid a diplomatic spat between China and Canada and calls for a boycott of the brand.
Based on the “strength” of the nine months ended on December 31, Canada Goose said revenue would rise in the mid- to high 30s on a percentage basis, compared with a November forecast of at least 30 per cent.
Last quarter, sales climbed 50 per cent to C$399.3 million (US$301 million), topping the C$360 million average of analysts’ estimates.
Those numbers appear to show that calls for a Chinese boycott of Canada Goose jackets in the wake of the arrest of Huawei executive Sabrina Meng Wanzhou in Vancouver on December 1 have fallen flat.
Chinese customers flock to Canada Goose’s first China flagship store opening despite calls for boycott
However, US shares of the Toronto-based company tanked in New York on Thursday amid a rout in retail stocks after government data showed retail sales in the US unexpectedly dropped in December.