China costs hurt Canada Goose’s bottom line
Luxury apparel retailer Canada Goose has posted a significant first-quarter loss, partly attributable to costs of the firm’s expansion into China.
The firm ended the three months with a C$18.7 million (US$14.2 million) net loss, compared with a loss of C$12.1 million (US$9.2 million) during the same period last year. At the same time, however, sales in the new market boosted total revenue by 58.5 per cent to C$44.7 million (US$34 million).
Canada Goose president and CEO Dani Reiss said of the China business: “On the hiring front we have made great progress, and we’re building a world-class local team. Commercial preparations for our launch and store openings are still on track, and in the near term we’ll be ramping up market activation efforts. We have exceptional demand from Chinese consumers for years, and we’re very excited to bring our retail and e-commerce experience directly to our fans there.”
Canada Goose is expected to open two retail stores in Beijing and Hong Kong and launch e-commerce business on Alibaba Group’s Tmall.