By
Bloomberg
Published
Mar 26, 2024
Canada Goose Holdings Inc. is cutting 17% 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% the previous two periods. Its shares have tumbled 75% in the last 12 months and fell as much as 3.7% Tuesday in Toronto trading.
“We are focused on achieving efficiency and margin expansion, while investing in key initiatives,” Chief Executive 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.
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.
