(Yicai Global) Dec. 17 -- Canadian luxury winter coat brand Canada Goose has canceled the planned grand opening of its first outlet in mainland China on Dec. 15.
The opening of its flagship store in Beijing's trendy downtown Sanlitun neighborhood, which was set for Dec. 15, will be postponed because of construction hitches. The specific opening time will be announced through official channels, the company said on Chinese microblogging site Sina Weibo on Dec. 14.
Canada Goose, which was founded 60 years ago in a warehouse in Toronto, Ontario, where the firm is still based, is now a world-renowned high-end down jacket brand with an average price of over CNY6,000 (USD869) each.
Supplying the Chinese market is one of Canada Goose's main goals, and it will 'continue brand expansion in Greater China,' according to its financial report released in July. The company declared the opening of its Shanghai office in May, cut the ribbon on its first Greater China store in Hong Kong in August, and set up an online flagship store on Tmall.
The firm is upbeat about its next-year performance and expects to achieve annual income growth of at least 30 percent, and an annual diluted earnings per share gain of at least 40 percent.
The company's stocks [NYSE:GOOS] have fallen steadily from the beginning of this month to Dec. 14, with a cumulative decline of about 26 percent, and its market value fell by USD2 billion.
Its shares have risen almost threefold in one year, but investors are becoming leery of their high price and fear overvaluation in an already saturated luxury winter wear market, crowd-sourced financial market content provider Seeking Alpha reported. Breaking into China may be just the right tonic to revive its flagging shares.
Editor: Ben Armour