Canada Goose Holdings Inc GOOS-T trimmed its full-year revenue forecast on Thursday as COVID-induced restrictions weigh on sales of upscale jackets and parkas in China.

Efforts by the Chinese government to contain the spread of infections with its zero-COVID policy have hit revenues of luxury companies like Canada Goose that witnessed store closures, elevated inventory levels and decline in demand as consumers turned more cautious.

The Toronto, Ontario-based company cut its fiscal 2023 sales expectations to about $1.18-billion to $1.20-billion, compared with its prior forecast of $1.2-billion to $1.3-billion. Analysts expect an annual revenue of about $1.24-billion, IBES data from Refinitiv showed.

The company forecast adjusted profit of between 92 cents and $1.03 per share for fiscal 2023, compared with its prior target of $1.31 to $1.62. Analysts have forecast an annual profit of $1.46 per share.

U.S.-listed shares of the Canadian company fell 3.2 per cent in premarket trading to $23.85.