(Bloomberg) -- Canada Goose Holdings (NYSE:GOOS) lowered its outlook for the year, saying coronavirus restrictions in China and “significant uncertainty” in the global economy will hurt sales and margins. The shares fell 8% in premarket trading in New York.
The Canadian manufacturer of high-end parkas and apparel said it expects revenue to come in at C$1.2 billion ($882 million) to C$1.3 billion for the fiscal year than ends next March. Previously, it projected as much as C$1.4 billion.
Canada Goose also cut its forecast for adjusted earnings before interest and taxes, giving a range of C$215 million to C$255 million for the fiscal year. That’s nearly 15% below earlier projections.
“The revised guidance assumes that Covid-19 restrictions in Mainland China will continue to negatively impact performance,” the company said in a statement on Wednesday. It also reflects “significant uncertainty from the broader macroeconomic and political environment,” the firm said.
Canada Goose shares had fallen more than 55% in New York this year. It’s been a tough year for luxury stocks, with the S&P Global Luxury Index dropping about 30% so far in 2021.
For the quarter ended Oct. 2, the company reported revenue of C$277 million, slightly above analysts’ forecasts for C$263 million. Revenue was up in all regions except the Asia Pacific, which accounted for about 20% of total sales in the quarter.
(Updates with share move, details on second quarter results.)
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