Animal Protection Organization Criticizes Canadian Geese Under Pressure Or Abandoning Wolf Hair.

Over the past 10 months, Canada Goose Holdings Inc. (NYSE:GOOS) Canada geese has been frustrated in the Chinese market and has been in the dark for the first time since its debut.

PETA, an animal protection organization, announced on its official website on Thursday that after its complaint to the US Federal Trade Commissioner (FTC), the Canadian down garment manufacturer set off the official website's moral statement on animal purchases, and no longer used the word "guarantee" to commit its suppliers to animal cruelty.

For the withdrawal of video and moral statements, Canada goose denied that it was forced to take action against the FTC investigation. It is also said that FTC's investigation did not draw any conclusions, so any reversal of the video and moral statement is irresponsible.

Although it is unclear when the Canada Company will withdraw its moral statements and videos, FTC issued a statement in June 17th, saying it would not enforce any enforcement action against Canadian geese, because Canada Company has taken prompt corrective measures against alleged misleading and false advertisements.

Therefore, it is almost inferred that the canadian goose withdrew its moral statement and video before June 17th.

The canadian goose official website has a video traced back to downstream supplier James Valley Colony Farms Ltd. to slaughter goose and harvest goose feather.

PETA issued a statement in August 1st announcing its complaint against FTC, which successfully dismantled the false marketing of Canadian geese. PETA said that after the agency's field investigation, the process of James ValleyColony Farms harvesting goose was horrible. The geese were slapdled into crowded cages by the workers, tied up and hung upside down, and then after 5 hours of long-distance transportation, they watched their partners cut throat one by one.

As for Canada's geese known as another raw material from hyenas, PETA accused Canadian geese that hyenas came from densely populated residential areas in the northwestern United States and Canada.

PETA said that hyenas would stay on the traps for up to 72 hours in the process of catching traps. During the process, hyenas usually break or tear with their legs. If hunters find these hyenas alive, they may be shot or killed with sticks or otherwise brutally killed.

Like the abuse of the goose slaughtering process, PETA showed FTC the killing process of hyenas last year.

However, in response to the PETA statement on Thursday, the canadian goose still claims that the company will continue to adhere to ethical procurement and responsibly use all animal materials in its products.

In its August 1st statement, PETA continued to urge Canada goose to stop using Coyote fur and goose feather.

The New York Post quoted sources on Thursday as saying Canada Company is trying to give up fur, for many reasons, including the forthcoming ban on fur in California and New York, and the growing dislike of fur among consumers.

Sam Poser, an analyst at Susquehanna International, an investment bank, said Canada Company is trying to diversify its products to reduce the use of Coyote fur. The company's management has even revealed that the development of wool based products is strong.

At the end of May, Canada Company's fourth quarter results showed that for the first three months of March 31st, Canada goose income failed to meet market expectations for the first time since its launch in March 2017, and its mid term performance target was also worse than that of Wall Street analysts. The warning of a slower growth slowed the market value of the Canadian high end pike coat manufacturer on a single day by 30%.

In the 2019 quarter of the fiscal year, Canada goose achieved 156 million 200 thousand Canadian dollars in revenue, less than 158 million 900 thousand yuan in the market forecast, and the growth rate of 25.1% also hit a new low in the fourth quarter of fiscal 2017. Meanwhile, during the 2018 fiscal year, the group gained 144.3% explosive growth under the help of stores and online expansion.

The medium-term goal of Canada goose renewal is expected to earn an average annual growth rate of more than 20% in the next three years, less than 28% of market expectations, and an average annual growth of 25%+ of adjusted EPS is also less than 29% of market expectations, and the current loss in the first quarter of fiscal year 2020 will be significantly expanded due to the expansion of China's investment and zero sales.

In the 2019 fiscal year, Canada goose achieved a revenue of 830 million 500 thousand Canadian dollars, an increase of 40.5% over the previous year's 591 million 200 thousand Canadian dollar and an increase of 39% in fixed exchange rates.

Analysts at the conference call group members to question the outlook too conservative, and chief financial officer Jonathan Sinclair stressed that "we responsibly put forward performance guidelines".

Since the establishment of the Canada Goose brand for 62 years, most of the time has been entirely dependent on wholesale sales. It was not until the group's listing in 2016 that it opened the DTC channel. Since then, DTC has become the growth engine of the group. The revenue in fiscal year 2019 has increased by 69.1% to 431 million 300 thousand Canadian dollars, representing a further increase from 51.9% to 43.1% in the previous year. Wholesale income also benefited from the increase of orders from the wholesale partners and the increase in 18.7% to 399 million 200 thousand Canadian dollars for the Canadian snow boots manufacturer Baffin.

However, management expects that the wholesale growth in the current fiscal year 2020 will slow down to high single digits, which means that the overall revenue growth target of 20% will be driven mainly by the planned retail sales of eight new independent stores (Greater China three stores) and a digital concept store this year.

However, the substantial slowdown of DTC is more alarming. Fourth quarter DTC revenue has increased by almost 29% under the conditions of almost double the number of stores in the past year. Bank of AmericaMerrill Lych, Merrill Lynch analyst Robbie Ohmes, conjectured that the same store sales growth retrogression or online sales slowed sharply.

If we abandon the use of Coyote fur, we will naturally join the mainstream luxury standards such as Gucci and Prada. However, the current consumer survey shows that although the moral standards of enterprises are improving, the actual purchase choices of consumers have not shifted because of morality. Most consumers still focus on price and quality.