By Dhirendra Tripathi
Investing.com – Canada Goose stock (NYSE:GOOS) plunged 15% Wednesday after the winter parka retailer reiterated its 2022 outlook.
A reawakening global economy has most retailers projecting stronger performance compared to pandemic times. Canada Goose reported widening losses in the June quarter, which didn't help matters.
The company expects its total revenue to top $1 billion in the ongoing financial year.
Revenue in the June quarter more than doubled from a year ago to C$56.3 million ($45 million). It rose by more than a third from the 2019 level.
Global e-commerce revenue increased by 123%, driven by high double-digit and low triple-digit growth rates in all major existing markets. Revenue rose significantly in all regions except Canada, which fell 7% despite elevated mandatory retail closures relative to other markets.
Direct to consumer revenue in Mainland China, which was heavily affected by Covid-19 disruptions in the comparative quarter, more than doubled.
While the operating loss was only a tad higher at C$60.7 million from last time’s C$59.3 million, finance costs rose just short of two-and-a-half times to C$16.5 million.
A higher tax rate also hurt the company’s bottom line. As a result, net loss widened to C$56.7 million from C$50.1 million.