Luxury parka retailer Canada Goose has lowered its sales forecast for the fiscal year and welcomed a new chief financial officer (CFO), resulting in an 11th consecutive day of falling share prices. The company’s stock reached a new low of C$13.60 ($9.80) after revising its total revenue forecast to a range of C$1.2 billion to C$1.4 billion. This is lower than the C$1.42 billion predicted by analysts and falls short of the company’s previous expectations of C$1.4 billion to C$1.5 billion in revenue.

In addition to revising its sales forecast, Canada Goose has also reduced its earnings expectations. The company now predicts a range of C$0.60 to C$1.40 per share, halving the lower end of its previous estimate. These adjustments are attributed to a “challenging retail environment.” Despite the obstacles, Canada Goose still managed to exceed expectations by earning an adjusted C$0.16 per share, surpassing the forecasted loss of C$0.22 per share.

Analysts, including Mark Petrie from CIBC Capital Markets, have expressed concerns about the company’s performance and anticipate a continued slowdown in momentum. October proved to be a difficult month for Canada Goose, with its shares falling approximately 23%. This decline was attributed to weaker economic reports in China, one of the company’s main markets, and concerns about warmer-than-usual winter weather forecasts. As a result, TD Securities and Wells Fargo downgraded the retailer’s shares.

To address these challenges, Canada Goose announced the promotion of Neil Bowden to CFO, effective April 1, 2024. Bowden, currently serving as the deputy CFO, will replace Jonathan Sinclair, who will become president of the Asia Pacific operations.

The announcement of the revised sales forecast and the appointment of a new CFO has negatively impacted Canada Goose’s shares, leading to an 11.6% drop in early trading on Wednesday in Toronto. The company faces significant obstacles in revitalizing its earnings within a challenging retail environment and navigating global market conditions.

Sources:
1. [CIBC Capital Markets – Mark Petrie](https://www.cibc.com/en/insights/markets/todays-market-moves.html)
2. [TD Securities](https://www.tdsecurities.com/docs/fxStrat/FX_Weekly.pdf)