Yahoo Finance Canada Goose stock jumps after flagship store opens in Beijing
Concerns of a Chinese boycott of Canada Goose Holdings Inc. may have been overblown, as shares of the apparel-maker’s jumped following the opening of a flagship store in Beijing.
Canada Goose (GOOS.TO) had initially delayed the opening of the store in Beijing in mid-December, amid escalating tensions between Canada and China over the arrest of Huawei chief financial officer Meng Wanzhou. Canada Goose said in a statement at the time that the delay had been due to construction work.
Meng’s arrest on Dec. 1 for allegedly violating U.S. sanctions against Iran prompted calls in China for a boycott of Canadian brands, including Canada Goose, from many on Chinese social media platform Weibo. Since Meng’s arrest, Canada’s Goose’s stock had dropped more than 38 per cent.
“The outrage is palpable in all corners of Chinese society – in social media and in personal conversations,” according to a story in China’s state-run tabloid, Global Times, on Dec. 19.
But that outrage didn’t appear to hamper the excitement for the first Canada Goose store opening in mainland China this weekend.
Are Chinese nationalists? Canada Goose's flagship store in Beijing opened for business on 28th. Pictures taken by my colleague show business is pretty good. pic.twitter.com/g1EZEnYlhs
— Hu Xijin 胡锡进 (@HuXijin_GT) December 30, 2018
The store opened to much fanfare, with people waiting an hour to get inside, according to a Reuters report.
On Monday, Canada Goose’s stock jumped as much as nine per cent in early trading. Shares of the apparel-maker were up nearly five per cent as of 1:10 p.m. ET.
“Calls to boycott the brand due to the Huawei CFO’s arrest in Canada have failed to garner much traction,” Bloomberg Intelligence analysts Maxime Boucher and Deborah Aitken wrote on Monday. “Opened after a short delay, its first Mainland China flagship in Beijing is already hugely popular.”
In May, Canada Goose had announced expansion plans in China, appointing a regional president while also announcing it would launch two new stores in both Beijing and Hong Kong. The Hong Kong store opened earlier this year.
Meng was released this month on $10 million bail. The U.S. has until early February to file for her extradition.
With files from Bloomberg News.
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