Luxury parka giant Canada Goose in Burnaby part of $50M revenue plunge

Burnaby winters might be mild, but we can all use a warm winter parka.

One of the best – and most expensive – for sale in Burnaby is Canada Goose, which you can find in a variety of local outlets.

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Stores such as the Bay at Metropolis at Metrotown and Sporting Life in the Amazing Brentwood stock Canada Goose items, which, of course, aren’t just parkas, but a variety of stylish clothing.

Sporting Life operates a 40,000-square-foot store in the Amazing Brentwood and is distinguished from other retailers by its mix of fashion and sport, pairing brands like Arc’teryx, Canada Goose, Moncler, Hugo Boss, Nike, Adidas and Champion with technologies from Burton, Salomon, Volkl skis, Cannondale bikes, Babolat tennis racquets and more.

But the COVID-19 pandemic has put a giant dent in Canada Goose sales in Burnaby and beyond.

Canada Goose Holdings Inc. reports its first-quarter loss nearly doubled to $50.1 million as revenue plunged 63 per cent from a year earlier due to the COVID-19 pandemic.

Canada Goose
Customers line up for the opening of Canada Goose's store. Photo: Glen Korstrom

Revenue for the luxury parka company dropped to $26.1 million in the quarter ended June 28, a seasonally slow period that coincided this year with widespread pandemic-related closures. Revenue in the same quarter a year ago totalled $71.1 million.

Both the company's wholesale business and its direct-to-consumer retail operations lost revenue, partially offset by about $7 million in other revenue from sales of personal protective equipment in support of COVID-19 response efforts.

The loss amounted to 46 cents per share and compared with a year-earlier loss of $29.4 million or 27 cents per share.

On an adjusted basis, Canada Goose says it lost $38.4 million or 35 cents per share compared with an adjusted loss of $22.8 million or 21 cents per share a year ago.

Canada Goose said it reduced anticipated cash expenses and investments by $90 million, and net cash used in operating activities was $110.5 million lower than a year earlier.

Canada Goose president and CEO Dani Reiss said in a statement that it has begun to see signs of recovery around the world, as it heads into its most important season.

  • With files from the Canadian Press

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