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Canada Goose Holdings Inc trimmed its full-year revenue forecast on Thursday as Covid-induced restrictions weigh on sales of upscale jackets and parkas in China.
Efforts by the Chinese government to contain the spread of infections with its zero-Covid policy have hit revenues of luxury companies like Canada Goose that witnessed store closures, elevated inventory levels and decline in demand as consumers turned more cautious.
The Toronto, Ontario-based company cut its fiscal 2023 sales expectations to about C$1.18 billion to C$1.20 billion, compared with its prior forecast of C$1.2 billion to C$1.3 billion. Analysts expect an annual revenue of about C$1.24 billion, IBES data from Refinitiv showed.
The company forecast adjusted profit of between 92 Canadian cents and C$1.03 per share for fiscal 2023, compared with its prior target of C$1.31 to C$1.62. Analysts have forecast an annual profit of C$1.46 per share.
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US-listed shares of the Canadian company fell 3.2 percent in premarket trading to $23.85.
By Granth Vanaik; Editor: Milla Nissi
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