TORONTO — 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.
Revenue for the Toronto-based 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.
The company says its investments in retail channels have been reduced and focused on openings in Mainland China, where customer traffic is recovering ahead of other markets.
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.
This report by The Canadian Press was first published Aug. 11, 2020
Companies in this story: (TSX:GOOS)