(Yicai Global) Jan. 11 -- Shares in winter clothes maker Canada Goose have regained traction over the past two weeks after a successful run at its new Beijing store, quashing concerns that Canada's arrest of a Chinese businesswoman would impact its sales in the country.
The firm's stock price [NYSE:GOOS] has rebounded 14.7 percent to USD47.9 since the Toronto-based firm opened the outlet on Dec. 28. The company originally planned to open the shop on Dec. 15, but postponed after encountering construction problems.
There were about 120 customers lined up outside the Sanlitun store on opening day, and they waited about an hour to get in despite below freezing temperatures, according to local media reports. Menswear in the shop was sold out by about late afternoon, before many shoppers even got inside.
Canada Goose's share price had been looking woeful since authorities in its home country apprehended Meng Wanzhou, chief financial officer of telecoms equipment giant Huaweu, on Dec. 1 at the behest of American authorities. The arrest sparked public outrage in China, and the fashion brand's share price plummeted as a result. It lost 33.2 percent from Dec. 6 through Dec. 28, wiping out around USD2.4 billion in market capitalization.
Meng, also the daughter of Huawei's founder and known in English as Cathy or Sabrina Meng, allegedly misled banks about the company's dealings in Iran. She is currently on bail pending an extradition hearing.
The Beijing store is still packed to the walls two weeks later, according to a WeChat account called Newsseeker. Store assistants have to guide the shoppers through the doors in groups of 10, it added.
Newsseeker's reported waiting 40 minutes before getting inside at around 4 p.m., when the only mid-length winter coats left were small or extra-small. The shop only stocked about five items of each size in each style, one of the assistants said.
A security guard added that the company had not expected its clothes to fly off the racks, and guesses around 80 percent of customers are leaving without the goods they wanted despite the wait.
"Thousands of customers have been flooding in every day from 10 a.m. to 9 p.m.," he said. "Almost everybody leaves with something, not many are here window shopping."
Editor: James Boynton