Canada Goose sees hit to 2020 profit, sales from coronavirus

Business

Canada Goose brand parkas in a store in New York.

Noam Galai | WireImage | Getty Images

Canada Goose said on Friday lower store traffic in China and travel restrictions due to the coronavirus epidemic would impact its revenue and lead to a smaller profit in 2020, sending its shares down 4%.

The virus outbreak has forced several luxury brands, including Capri Holdings and Ralph Lauren, to shut stores and cut their forecasts.

The parka maker expects revenue to grow between 13.8% and 15%, compared with its prior forecast of at least 20% growth.

That translates to C$945 million ($710 million) to C$955 million, a hit of up to C$51.6 million. Analysts were expecting C$1.03 billion, according to IBES data from Refinitiv.

It forecast full-year adjusted profit growth to be in the range of 2.2% decline to 0.7% rise from a year earlier, compared with a prior forecast of at least 25% growth.

The forecast of C$1.33 per share to C$1.37 per share was below the average analysts’ estimate of C$1.68.

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