COVID-19 seems to have hit Canada Goose very hard!
The Toronto-based winter clothing manufacturer predicts ‘negligible’ revenue in the current quarter – and it has all the reasons to believe so.
Ever since the company shut down its stores in March owing to the deadly pandemic, its sales were hit badly all across Europe, North America and Asia.
The company also said that there have been no shipments to department stores majorly owing to the lockdown and restrictions imposed by the Government.
So in the first quarter, there will be practically nothing to show; however, the company has already started taking some significant steps.
In addition to cutting down salaries of executives, the company is also slashing marketing-related costs and investments so as to save around $ 90 million. Besides, the company also recently laid off around 125 employees to combat the crisis.
Canada Goose, known for making red parkas worn by everyone from Arctic scientists to Hollywood bigwigs, generates revenue of C$ 591.2 million and employs more than 5,000 people across the globe.
Also, Canada Goose coats use duck down insulation and coyote fur trim which keeps the wearer warm in extreme cold weather for which Canada is known in the world.
Apparel Resources had visited its manufacturing unit in Toronto few years back and seen the entire process of jacket manufacturing.
Along with its 2 production sites in Quebec, Canada Goose also operates 3 factories in Winnipeg, Manitoba and 3 in the Toronto region.