Canada Goose Holdings Inc. (“Canada Goose” or the “Company”) (NYSE:GOOS, TSX:GOOS) today provided an update on COVID-19.
- We 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 at canadagoose.com.
- In Greater China, retail stores remain open and happy to welcome customers, as does our e-commerce through Tmall’s Luxury Pavilion.
- Our store in Tokyo, which is partner-operated and accounted for in our wholesale channel, is also open with a reduced schedule.
- In Canada we will begin closing our in-house production facilities as of March 17 for at least a two-week period.
- All current retail and manufacturing closures will be reassessed regularly in real-time as this 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 & 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, Dani 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 critical financial support to employees and their families during this time.
Financial Update
The Company reiterates the fiscal 2020 outlook issued with the release of third quarter fiscal 2020 results on February 7, 2020. The extent and duration of COVID-19 disruptions remain uncertain and they may negatively impact future fiscal periods more significantly. As a result, Canada Goose is suspending the 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 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.
Within the meaning of applicable securities laws, these statements constitute forward-looking information. The purpose of our fiscal 2020 outlook is to provide a description of management's expectations regarding the Company's financial performance and may not be appropriate for other purposes. Actual results could vary materially as a result of numerous factors, including the extent and duration of disruptions that may affect our business as a result of the coronavirus outbreak and other risk factors, many of which are beyond the Company’s control. Additional assumptions, risks and uncertainties relating to our fiscal 2020 outlook are included in the press release issued by the Company on February 7, 2020 with respect to the release of third quarter fiscal 2020 results. See “Cautionary Note Regarding Forward-Looking Statements”.