COAT maker Canada Goose and make-up seller Estee Lauder both issued stark sales warnings yesterday due to Covid-19 curbs in China.

It comes as Chinese authorities have set out a seven-day lockdown in Zhengzhou, also impacting the world's largest iPhone factory.

Canada Goose said yesterday that it was slashing its full-year revenue forecast due to pandemic-linked measures impacting luxury parka sales in China.

It cut its fiscal 2023 sales expectation to a range of CA$1.2-1.3bn, down from CA$1.3-1.4bn.

However, demand for luxury products had continued to remain strong ahead of the holiday season outside of China, according to chief executive officer Dani Reiss.

This was despite historic levels of inflation.

Elsewhere, Estee Lauder said it anticipated its full-year 2023 net sales would plunge between six and eight per cent, compared with the prior forecast of growth of three to five per cent. The cosmetics firm tends to generate around one third of its revenue from China.

"Covid-19 restrictions in China presented a greater challenge than expected," the New York-listed company said in a trading statement published yesterday morning.

It also said it expected a decrease in net sales in the current quarter of between 17 and 19 per cent.

Bosses of the cosmetics giant told analysts yesterday that prices on makeup products would continue to be lifted due to inflation.

Executives said they were looking at hiking prices in January or February by a larger than anticipated percentage.

Analysts said the company would be impacted by shoppers trading down and opting for cheaper make-up products, placing it in a vulnerable position.

(c) 2022 City A.M., source Newspaper