Luxury outerwear brand, Canada Goose Holdings has announced it will limit shipments to department stores and focus on its own retail stores and website to help profit margins effected by the coronavirus pandemic.
The luxury outerwear retailer said it would focus on recovery at its own retail outlets for the duration of the year so the company can sell coats and down jackets at triple the profit.
Canada Goose shares have fallen over 40% this year, and increased over 11% on Wednesday.
The outerwear retailer said since March, shipments to department stores have stopped largely and it expects lower number of orders to be placed throughout the rest of the year, due to stock pileups during closures.
Although, Chief Executive Officer Dani Reiss emphasised new focus has was because Canada Goose’s own stores and online business would recover much quicker than its wholesale platforms
Last year, wholesale revenue made nearly 44% of the brand’s total revenue in the previous fiscal year.
In the fourth quarter ended March 29, Canada Goose’s revenue fell nearly 10% to C$140.9 million ($104.15 million), but beat analysts’ estimates of C$128.1 million, according to IBES data from Refinitiv.