Canada Goose Delays Beijing Store Debut Amid Huawei Tensions
Canada Goose Delays Beijing Store Debut as Protest Calls Mount
(Bloomberg) -- Canada Goose Holdings Inc. is delaying the opening of its flagship store in Beijing, as escalating tensions between China and Canada triggered by the arrest of Huawei Technologies Co.’s finance chief threaten its ambitions in the world’s second largest economy.
The Toronto-based maker of premium parkas said on its Weibo account late Friday that it was postponing the store’s debut, scheduled for Saturday in Beijing’s trendy Sanlitun district, “due to construction reasons.” The posting came after Weibo social media users threatened to protest the opening. The company has been targeted for a boycott of its brand on media platforms since Meng Wanzhou’s arrest, given its prominence as a Canadian label.
Canada Goose shares fell as much as 4.9 percent in Toronto Friday, the sixth decline in seven trading sessions since news about Meng was made public last week. The stock is down about 24 percent since then.
The company didn’t give a date for when the store would open. When contacted for a comment, it reiterated the delay was due to construction and said it looked forward to launching in the near future.
“Canada Goose continues to move forward with our expansion plans in China,” the company said in a statement.
The timing could not be worse for the luxury jacket maker, which just last month launched a splashy entry into greater China with a store in Hong Kong and plans for the Beijing flagship, betting that the country’s growing middle class is ready to spend on its Arctic-ready, $1,000-plus parkas.
The detention of the Huawei executive has sparked a selective anti-Canada backlash in China: Other Canadian brands like IMAX Corp. and Tim Hortons Inc. have so far been spared calls for a boycott.
China’s spy agency has also detained two Canadians in the past week, which some view as retaliation for Meng’s arrests, although China has deflected questions about any links.
--With assistance from Sandrine Rastello and Jonathan Roeder.
To contact Bloomberg News staff for this story: Rachel Chang in Shanghai at wchang98@bloomberg.net;April Ma in Beijing at ama112@bloomberg.net;Daniela Wei in Hong Kong at jwei74@bloomberg.net
To contact the editors responsible for this story: K. Oanh Ha at oha3@bloomberg.net, Jeff Sutherland
©2018 Bloomberg L.P.
With assistance from Bloomberg