Canadian Goose Performance Growth Slowed 2019 Net Profit 143 Million Yuan Less Than Expected

According to the fashion business bulletin, the luxury feather brand Canada Goose Canada goose, which has been expanding rapidly in recent years, released its fourth quarter and annual performance report before the US stock market yesterday. Sales in the fourth quarter ended up 25% to $156 million 200 thousand in the fourth quarter of March 31st, lower than the analyst's 156 million 800 thousand yuan increase. This is also the slowest sales growth in the 8 quarter of the company, and hinted that it would not be able to maintain the explosive growth rate in recent years.

In the 2019 fiscal year, sales increased by 40.5% to 830 million Canadian dollars, with net profit of $143 million, but not as much as $186 million expected by the market.

Canadian goose also warned that the "greater losses" will be recorded in the quarter, as it seeks to increase investment and new stores in China.

Capital markets are worrying about global growth of Canadian geese.

After the release of the earnings report, Canadian geese shares plunged more than 30% to 33.89 U.S. dollars, the biggest one-day decline since listing, and the market value evaporated more than 1 billion 600 million dollars, or about 11 billion 400 million yuan.

Data show that Canadian geese over the past two fiscal year's annual revenue growth of more than 40%.

But the company said yesterday that it expects the sales growth in the next 3 years to slow to about 20% a year.

Whether it is from the annulus or the growth rate of the same period, the capital market is worried about Canada geese.

In the third quarter of last quarter, canadian goose sales surged 50.2% to 399 million yuan, gross profit margin was 64.4%, net profit rose 72% to 105 million 300 thousand yuan, exceeding analysts' expectations.

Among them, Canada goose direct retail channel revenue rose 79% to 235 million yuan a year, mainly due to the brand new period in Hongkong, Beijing and other new stores and the promotion of Tmall official flagship store.

In the fourth quarter of last year, Canada goose sales surged 146% to 125 million 800 thousand Canadian dollars, and net profit was 8 million 100 thousand Canadian dollars.

It is noteworthy that Canadian geese are moving from wholesalers to direct retail outlets to seek growth through expanding their business in China.

In 2018, Canada geese opened 5 new stores in the world, of which 2 were in China.

But Bloomberg said earlier that the cost and market competition of channel expansion will still be a risk for Canadian geese.

CNN wealth channel said, "Canada goose runs a highly crowded and fragmented market, especially in the Chinese market. If we do not speed up, a large number of fake commodities will dilute the value of the brand in the minds of consumers and become a real" overflow "street.

Some analysts believe that for many brands, the Chinese market can be called "goose that lays golden eggs", but when the situation changes, it can also make the brand a goose bump.

Canada goose, China's first store in Sanlitun, Beijing, once postponed its opening because of the "Canadian storm".

In addition, with the awakening of consumer awareness, whether clothing comes from the supply chain with enterprise morality is becoming more and more important.

Compared with the changes in the economic situation, social and cultural changes are often difficult to quantify through the form of records, so it is easy to be ignored by the decision-making level.

But in fact, as a social phenomenon, the fate of luxury goods is closely related to the change of social psychology.

As of yesterday's close, the market value of Canada goose was recorded at $3 billion 732 million, compared with the high point hit by the stock in December 2018, which has evaporated 3 billion 200 million dollars.