Canada Goose expects $30 million charge for arbitration dispute

Canada Goose expects $30 million charge for arbitration dispute

Canada Goose Holdings Inc. (GOOSE) announced on Wednesday that it expects to incur a one-time charge of $30 million as a result of an arbitration dispute with one of its former vendors. The decision, handed down by an arbitrator, has led to the company disagreeing with the legal basis used in awarding financial compensation to the former vendor. The termination of the contract in question occurred in 2021, and the judgment does not impact current vendor relationships or ongoing business operations.

Canada Goose maintains strong global partnerships with its vendors and stated that this matter is not expected to have a material impact on the company's long-term financial position or strategy. The $30 million charge will be reflected in the company's results for the current quarter, which ends later this month.

The company is currently evaluating its options for moving forward, indicating that it is not yet clear how the dispute will be resolved. Despite the charge, Canada Goose remains committed to its partnerships and business operations.

Reference list:
[1] https://www.marketwatch.com/story/canada-goose-expects-30-million-charge-for-arbitration-dispute-8efc8d75