Canada Goose shares slide 7% premarket as company’s loss widens and revenue slides during pandemic

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Canada Goose Holdings Inc. shares fell 7.3% in premarket trade Tuesday, after the company’s loss widened and revenue fell sharply in its latest quarter. The company said it had a net loss of C$50.1 million ($37.7 million), or 46 cents a share, in the quarter to June 28, after a loss of $29.4 million, or 27 cents a share, in the year-earlier period. The company said it had adjusted loss of 35 cents a share, compared with a FactSet consensus for a loss of 42 cents a share. Revenue tumbled to C$26.1 million from C$71.1 million, compared with a C$20.5 million FactSet consensus. Direct-to-consumer sales fell to C$10.4 million from C$34.8 million, driven by temporary store closures and reduced store hours due to COVID-19. “New openings this year will be concentrated in Mainland China, where the recovery of traffic remains ahead of other markets,” the company said in a statement. “With international tourism now heavily constrained, serving the world’s largest luxury consumer base at home is increasingly crucial.” The company is expecting a ‘significant revenue decline’ in its fiscal second quarter and is not providing guidance for the full year, given the uncertainty created by the pandemic. Shares have fallen 31.5% in the year to date, while the S&P 500 has gained 4%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.