Canada Goose shares slump another 4% after chain delays Beijing store launch
Shares in Canada Goose were slumping on Friday after the iconic parka maker delayed opening its first permanent store in mainland China, a move that comes amid a growing anti-Canadian backlash in that country.
The company's TSX-listed shares were off almost five per cent to $69.72 near midday on Friday, the seventh day out of the past eight that the stock has been in negative territory.
All in all, the company has shed almost a quarter of its value since Meng Wanzhou, the CFO of Chinese technology giant Huawei Inc., was detained in Vancouver at the request of U.S. authorities.
That sparked a backlash against Canadian companies by Chinese consumers, and the winter gear company with the red maple leaf on its logo has seemingly become a prime target.
The company had previously identified China as one of its biggest markets for growth, and was in the process of rolling out expansion plans. The company has stores in Hong Kong and has had temporary pop-up shops elsewhere, but a 6,000-square-foot location in a prime Beijing-area shopping district was to have been their first permanent location in mainland China.
Analyst Oliver Chen with Cowen Research said last month that the company's initial pop-up shops and other forays into the Chinese market saw a "strong reception," from consumers, "boding well for the actual store opening."
But on Chinese social media platform Weibo on Saturday, the company said a planned launch of its flagship Beijing location has been delayed because of construction.
"We originally planned to open the Beijing Sanlitun flagship store on December 15th," the company said on its Weibo account, according to a CBC translation. "Due to construction reasons, the opening will be postponed. Opening hours, etc. will be announced through official channels. Stay tuned for updates. Thank you for your support and understanding!"
The company's North American-based representatives confirmed the delay in a statement to CBC News on Friday.
"Canada Goose continues to move forward with our expansion plans in China. However, our Beijing store has been delayed slightly due to ongoing construction," the chain said. "We look forward to opening our newest store in the near future, but first and foremost we want to ensure that we provide the best experience for our fans and customers. We will continue to update the market as appropriate as plans progress."
