The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Canada Goose Holdings Inc. is cutting 17 percent of its global corporate workforce as it attempts to support long-term growth amid a slowdown in sales.
The luxury parka retailer’s job cuts follow two quarters of single-digit sales growth after increases of more than 20 percent the previous two periods. Its shares have tumbled 75 percent in the last 12 months and fell as much as 3.7 percent Tuesday in Toronto trading.
“We are focused on achieving efficiency and margin expansion, while investing in key initiatives,” Chief Eexecutive officer Dani Reiss said in the company’s statement. In a LinkedIn post, he said the reset is intended “to put us in the best position to scale.”
The retailer did not specify how many positions will be eliminated. As of April 2023 the company had 4,760 employees, according to data compiled by Bloomberg.
ADVERTISEMENT
Spending within the broader luxury sector remains curtailed by China’s slow recovery and an ongoing pullback in consumer spending in the US. While the Asia-Pacific was the company’s only region to post third-quarter revenue growth, “China has not been immune to the soft macro that we’ve seen globally,” chief financial officer Jonathan Sinclair said during the February call.
Beth Clymer, president of finance, strategy, and administration, will take on operations responsibilities. Former chief operating officer John Moran left the company last week for home-furnishings retailer Arhaus.
By Lara Sanli
Learn more:
Canada Goose Rides on China Luxury Recovery to Forecast Strong Quarter
Canada Goose Holdings forecast fourth-quarter revenue above analysts’ estimates on Thursday, as the luxury goods maker bets on a sharp rebound in crucial market China to help ride out a slowdown in the US.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.
Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.