Canada Goose, the outerwear brand favored by chilly film set workers and heat-seeking high-end shoppers, yesterday announced plans to shed ~17% of its corporate workforce as part of a cost-cutting “Transformation Program”. The layoffs could affect ~150 staff as the brand, where you can pick up a parka for $1850, looks to slash overheads.
In the wake of the pandemic, the experience economy boomed, and, so far, it’s showing few signs of slowing down. Meanwhile, demand for luxury items has started to slip as years of inflation have led to American consumers tightening their belts... a trend that almost certainly played a part in Canada Goose’s North American sales dropping 14% last quarter.
Furgive and furget
Slumping sales in its homeland and the US didn’t stop the brand from shipping more than $600m globally — buoyed by strong demand in China — but it does suggest that the feather-stuffed company’s golden days of growth are behind it. Even so, the ultra-warm coats still see seasonal sales surges as temperatures drop, despite using controversial materials.
Indeed, Canada Goose has long faced criticism from animal rights activists for using coyote fur to line its hoods, but the company’s decision to move away from buying new fur has helped it score with younger shoppers in particular: last year over 50% of its customers were millennials or younger.
