Shoe CFOs Are Getting Bigger Roles. Here’s Why

Welcome back to FN Daily, where we break down the biggest stories happening in footwear and retail.

Today we have a deep dive into the how the footwear CFO role is changing and a look at how the Baltimore bridge collapse will (or won't) impact footwear. Plus, Canada Goose undergoes layoffs.

Here's what you need to know.

Crocs, Rothy’s and Other Big Shoe Players Are Promoting CFOs to Even Bigger Roles. Here’s Why

Anne Mehlman was recently promoted from CFO to brand president of Crocs, just one example in a growing trend across the corporate world: CFOs are increasingly becoming the leading contenders for top roles.

“It’s just a great position to have a total overview of the business,” Mehlman told FN in an interview. She explained how CFOs typically possess a “strategic view that others in the organization may not have.” This, she said, explains why some of these leaders are moving to roles outside of the traditional finance lane.

Stories like Mehlman’s are becoming more common. According to data from leadership advisory firm Russell Reynolds, CFOs in 2023 were three times more likely to get the chief executive officer nod than they were in 2021.

This new leadership pipeline is a result of the changing nature of the CFO role as a whole. CFOs are now more heavily involved in broader strategy and other business units outside of finance, which makes them stronger candidates for elevated roles down the line.

Read more about the shifting CFO role in footwear, here.

Baltimore’s Devastating Bridge Collapse Unlikely to Have a Major Impact on Footwear Shipments

Tuesday’s devastating collapse of a bridge in Baltimore is already impacting operations in the Port of Baltimore. Though footwear, which accounts for a small portions of imports there, will likely not be majorly affected.

In addition to the human toll, the bridge collapse has halted all vessel traffic in and out of the Port of Baltimore until further notice, though the port is still open for truck transports.

According to data from American Apparel & Footwear Association (AAFA), Baltimore accounted for 0.79 percent of footwear imports to the U.S. by volume and 8.78 percent footwear imports to the U.S. by value in 2023. That same year, Baltimore accounted for 0.23 percent of apparel imports to the U.S. by volume and 0.30 percent of apparel imports to the U.S. by value.

Baltimore is one of the smaller container ports in the Northeast and mainly imports and exports autos, trucks and farm vehicles, explained Craig Johnson, founder of retail consultancy Customer Growth Partners.

“Apparel and accessories are minimal in comparison, and cargo ships will of course need to get re-routed to other eastern ports,” he said. This, he explained, could potentially affect “back to school shipments slightly,” but won’t be “a show-stopper.”

Canada Goose Cuts 17% of Corporate Workforce, Reorganizes Management, as it Implements Transformation Plan

Canada Goose said on Tuesday that it is cutting approximately 17 percent of its corporate workforce as the company advances its transformation program.

The move comes after the Toronto-based outdoor brand said it conducted a “comprehensive review” of its organizational structure and roles needed to achieve strategic objectives. The company said that the cuts are anticipated to yield immediate cost savings, simplify organizational structure, accelerate decision making and increase efficiencies across its operating platform.

Canada Goose added that it will provide further information on the transformation program and its impacts on its upcoming fourth quarter earnings call in May.

As part of these cuts, Canada Goose is reworking some of its management organizational structure as well.

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