Shares of Canada Goose fell the most in a month after the New York Post reported that the Toronto-based outerwear company was on track to double its holiday discounts this year to an average of 13 per cent.
“There are deeper markdowns this year, which undercuts the brand equity and integrity,” John Morris, an analyst at DA Davidson who published a holiday pricing study this week, told the New York Post. The company joined Abercrombie & Fitch as one of the two most heavily discounted brands out of 18 companies that Morris covers.
The Post pointed to slow traffic at shopping malls, high inventory levels at upscale stores like Saks and pressure from animal-rights activists as possible reasons for the heavier discounts. Canada Goose said in a statement to the newspaper that it maintained consistent pricing through its country-specific distribution channels.
“The only data presented by the NY Post to Canada Goose in support of this story has been proven false,” Canada Goose said in an emailed response to questions from Bloomberg News without elaborating.
Shares declined 3.2 per cent on Friday to close at US$38.86 in New York trading. It was the biggest decline since Nov. 13, according to data compiled by Bloomberg.
--With assistance from Joshua Fineman.