Courtesy of Benzinga.
Despite political tension between Canada and China, Canada Goose Holdings Inc (NYSE: GOOS) proceeded with plans to open its flagship store in Beijing.
What Happened
At the request of U.S. authorities in early December, Canadian authorities arrested Huawei CFO Meng Wanzhou. Shortly after, several Canadian citizens were detained in China in what the government said amounts to “arbitrary detention.”
The diplomatic spat prompted Canada Goose, the maker of jackets and other apparel for cold weather, to delay its store opening from Dec. 15 but Sunday’s grand opening attracted a large crowd of shoppers, Reuters reported. The new Canada Goose store welcomed a long line of Chinese shoppers who were looking at Canada Goose products, including jackets that cost around 9,000 ($1,300).
Why It’s Important
Canada Goose said the delay in its store opening is due to construction work and according to Reuters there were construction workers in the store Monday. Reuters said Canada Goose hasn’t made any official mention of its new store opening on any of its Chinese operated social media platforms.
What’s Next
Shares of Canada Goose were higher by more than 7 percent Monday morning as investors are likely encouraged by the company’s plans in China proceeding despite political tension. Several Wall Street analysts are bullish on the stock as China is the world’s largest luxury market and Canada Goose’s expansion into the company is in the early stages.
Related Links:
Susquehanna Bullish On Canada Goose: ‘We Foresee A Long Runway For Margin Expansion’
Credit Suisse Says Canada Goose Stock Pressure Appears Overdone
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