Canada Goose Holdings Inc. said Monday evening it will close all retail stores in North America and Europe as of March 17 until at least March 31. Customers will continue to be able to shop on the brand’s website.
In Greater China, retail stores remain open as does its e-commerce through Tmall’s Luxury Pavilion. The company’s store in Tokyo, which is partner-operated and accounted for in our wholesale channel, is also open with a reduced schedule.
In Canada, Canada Goose will begin closing its in-house production facilities as of March 17 for at least a two-week period.
All current retail and manufacturing closures will be reassessed in real-time as the global health crisis evolves.
“We are facing unprecedented times. On behalf of our 5,000+ employees around the world, I want to express our deep gratitude to everyone who is working tirelessly on the frontlines, and our hearts go out to everyone who has been affected,” said Dani Reiss, president and CEO of Canada Goose. “This situation is constantly evolving, and we are committed to supporting our employees as best as possible while doing our part to prevent the spread of COVID-19.”
In a letter to Canada Goose employees, Reiss noted that he will forego his salary for at least the next three months, and the Company will use those funds to establish the Canada Goose Employee Support Fund. For employees who are impacted by the closures but are not eligible for government assistance, this fund will provide financial support to employees and their families during this time.
Financial Update
The company reiterated the fiscal 2020 outlook issued with the release of its third-quarter fiscal 2020 results on February 7, 2020. The extent and duration of COVID-19 disruptions remain uncertain and it could negatively impact future fiscal periods more significantly. As a result, Canada Goose is suspending its long-term outlook previously provided with the release of fiscal 2019 results on May 29, 2019, which did not account for the impact of COVID-19 disruptions. The company expects to provide an update regarding these developments with the release of its fiscal 2020 results. Canada Goose has a high degree of financial flexibility through both cash-on-hand and undrawn capacity on its asset-based revolving credit facility, which was increased to $517.5m during peak periods on February 24, 2020.
Photo courtesy Canada Goose